Every federal budget in Pakistan introduces crucial modifications to the Income Tax Ordinance, 2001, impacting how much salaried professionals take home each month.
In this guide, we provide a detailed side-by-side comparison of Fiscal Year 2025–2026 and Fiscal Year 2026–2027 salaried tax slabs, highlighting how your take-home pay has shifted.
To check your exact savings or liability across fiscal years, use the Techlo.pk Multi-Year Salary Tax Calculator.
Side-by-Side Slab Comparison
Here is how the progressive salary tax slabs compare between the two fiscal years:
| Annual Taxable Income (PKR) | FY 2025–2026 Rates | FY 2026–2027 Rates | Key Difference |
|---|---|---|---|
| Up to Rs. 600,000 | 0% (Tax Free) | 0% (Tax Free) | Unchanged (Rs. 50k/mo limit) |
| Rs. 600,001 – 1,200,000 | 1% of excess over 600k | 1% of excess over 600k | Unchanged (Rs. 500/mo at 100k) |
| Rs. 1,200,001 – 2,200,000 | Rs. 6,000 + 11% > 1.2M | Rs. 6,000 + 11% > 1.2M | Same base rate |
| Rs. 2,200,001 – 3,200,000 | Rs. 116,000 + 23% > 2.2M | Rs. 116,000 + 20% > 2.2M | 3% lower marginal rate |
| Rs. 3,200,001 – 4,100,000 | Rs. 346,000 + 30% > 3.2M | Rs. 316,000 + 25% > 3.2M | 5% lower marginal rate |
| Rs. 4,100,001 – 5,600,000 | Rs. 616,000 + 35% > 4.1M | Rs. 541,000 + 29% > 4.1M | 6% lower marginal rate |
| Rs. 5,600,001 – 7,000,000 | Rs. 616,000 + 35% > 4.1M | Rs. 976,000 + 32% > 5.6M | 3% lower marginal rate |
| Above Rs. 7,000,000 | 35% + High Income Surcharge | Rs. 1,424,000 + 35% > 7M | Rationalized brackets |
Impact on Monthly Take-Home Pay
Let us see how these structural changes affect common salary benchmarks:
1. Monthly Salary of Rs. 100,000 (Rs. 1.2M Annual)
- FY 2025-26 Tax: Rs. 500 / month (Rs. 6,000 / year)
- FY 2026-27 Tax: Rs. 500 / month (Rs. 6,000 / year)
- Difference: No Change. Both fiscal years tax Rs. 600,000 at 1%.
2. Monthly Salary of Rs. 250,000 (Rs. 3.0M Annual)
- FY 2025-26 Tax: Rs. 116,000 + 23% of 800,000 = Rs. 300,000/yr (Rs. 25,000/mo)
- FY 2026-27 Tax: Rs. 116,000 + 20% of 800,000 = Rs. 276,000/yr (Rs. 23,000/mo)
- Net Benefit: You save Rs. 2,000 per month (Rs. 24,000 per year) due to the reduction of the marginal rate from 23% to 20%.
3. Monthly Salary of Rs. 400,000 (Rs. 4.8M Annual)
- FY 2025-26 Tax: Rs. 616,000 + 35% of 700,000 = Rs. 861,000/yr (Rs. 71,750/mo)
- FY 2026-27 Tax: Rs. 541,000 + 29% of 700,000 = Rs. 744,000/yr (Rs. 62,000/mo)
- Net Benefit: You save Rs. 9,750 per month (Rs. 117,000 per year) thanks to the new 29% intermediate slab.
What Salaried Professionals Should Do
- Verify Your Employer’s Withholding: Ensure your HR and payroll team have transitioned from the old slabs to the current FY 2026–27 schedule to prevent over-deduction under Section 149.
- Review Prior Year Liabilities: If filing delayed tax returns for FY 2024–2025 or FY 2025–2026, use historical slabs to calculate your exact tax dues.
- Use the Interactive Comparison Tool: Switch fiscal years with 1 click using the Techlo.pk Salary Tax Calculator to see your personal tax difference.