Question 1

How is salary tax calculated in Pakistan for FY 2026-27?

Accepted Answer

Salary tax is calculated progressively across the FY 2026-27 FBR salaried slabs — eight brackets in total. Only the portion of income within a bracket is taxed at that bracket's rate, up to a top rate of 35% on income above Rs. 7 million. The final tax is the sum across all brackets.

Question 2

What is the tax-free income threshold for salaried individuals?

Accepted Answer

For FY 2026-27, the first Rs. 600,000 of annual salaried income is taxed at 0%, unchanged from FY 2025-26. Income above this threshold is taxed progressively across the remaining FBR salaried slabs.

Question 3

What are the FY 2026-27 salaried slab rates?

Accepted Answer

See the full slab table below — four brackets were restructured and two new ones added. The 35% top rate now starts at Rs. 7 million instead of Rs. 4.1 million, meaning higher-income earners benefit from lower rates on the Rs. 4.1M–7M band.

Question 4

Is there still a surcharge for high-income salaried individuals in FY 2026-27?

Accepted Answer

No. The Section 4AB surcharge on salaried income above Rs. 10,000,000 has been abolished for FY 2026-27. It still applies to non-salaried individuals and AOPs at 10% of tax payable above the same threshold — this surcharge was not removed for those categories.

Question 5

What is "taxable income"?

Accepted Answer

Taxable income is your gross income minus allowable deductions, exemptions, and tax credits — for example, Zakat, approved donations, and pension contributions. It is the figure the FBR slab rates are actually applied to, not your gross salary. TaxCalc uses gross income as a proxy; your actual taxable income after deductions will be equal to or lower.

Question 6

Does super tax apply to me?

Accepted Answer

Super tax (Section 4C) generally applies only to companies and high-income earners above Rs. 500 million in annual income (threshold raised from Rs. 150 million under Finance Act 2026 for most sectors). It does not typically apply to salaried individuals or ordinary AOPs. See our Super Tax Calculator for a full breakdown.

Question 7

How does AOP tax differ from salaried individual tax?

Accepted Answer

AOPs share the same Rs. 600,000 tax-free threshold as individuals, but are taxed under a steeper progressive schedule with a top rate of 45% versus 35% for salaried employees. The 10% high-income surcharge still applies to AOPs. Select "AOP" or "Individual" above to see the exact breakdown.

Question 8

Can I see how my tax compares to last year?

Accepted Answer

Yes — use the Compare Years tool to see your exact tax difference between FY 2025-26 and FY 2026-27, slab by slab, for salaried, individual, or AOP income.