Pakistan salary tax calculator (tax year 2026-27)

How salary after tax in Pakistan is calculated

Tax year 2026-27 runs from **1 July 2026 to 30 June 2027**. The **Finance Act 2026** replaced the salaried table in clause (2) of Division I of Part I of the First Schedule to the Income Tax Ordinance 2001. It applies where salary is more than 75% of your taxable income: **0%** up to Rs600,000, then **1%**, **11%**, **20%**, **25%**, **29%**, **32%** and **35%** on bands that break at Rs1.2 million, Rs2.2 million, Rs3.2 million, Rs4.1 million, Rs5.6 million and Rs7 million. The same Act withdrew the 9% surcharge on salaried individuals above Rs10 million (s.4AB).

On **Rs200,000 a month** the year’s salary is Rs2,400,000 and income tax is **Rs156,000** — Rs6,000 + 11% of Rs1 million + 20% of Rs200,000 — or Rs13,000 a month. With EOBI at 1% of the Rs40,700 minimum wage, take-home is **Rs186,593** a month.

The employee’s EOBI share is 1% of the wages the EOBI Act counts, which are the declared minimum wage, not your salary (ss.2(p), 9B). No 2026-27 notification under the 1969 Ordinance was found, so the Rs40,700 default (the federal civil employees’ pay floor) is a placeholder: use the wage on your EOBI statement. EOBI covers employers with five or more staff and stops at 60 (55 for a woman). Provincial social security is paid by the employer alone. Tax credits and reductions, zakat and super tax above Rs500 million are not modelled. Estimate, not tax advice.