Income tax slabs 2026-27
Tax Year 2027
Income earned 1 July 2026 to 30 June 2027, under the Finance Act 2026 (Budget 2026-27). You file this next year.
Filing deadline for individuals & AOPs: 30 September 2027.
What changed: Salaried rates were cut on the middle and upper slabs, the surcharge on salaried income above PKR 10 million was abolished, and the salaried slab count went from six to eight.
Salaried
| Annual income (PKR) | Rate | Tax on this band |
|---|---|---|
| Up to 600,000 | 0% | No tax |
| 600,000 – 1,200,000 | 1% | 1% of amount over PKR 600,000 |
| 1,200,000 – 2,200,000 | 11% | PKR 6,000 + 11% over PKR 1,200,000 |
| 2,200,000 – 3,200,000 | 20% | PKR 116,000 + 20% over PKR 2,200,000 |
| 3,200,000 – 4,100,000 | 25% | PKR 316,000 + 25% over PKR 3,200,000 |
| 4,100,000 – 5,600,000 | 29% | PKR 541,000 + 29% over PKR 4,100,000 |
| 5,600,000 – 7,000,000 | 32% | PKR 976,000 + 32% over PKR 5,600,000 |
| Above 7,000,000 | 35% | PKR 1,424,000 + 35% over PKR 7,000,000 |
Business / non-salaried (individuals & AOPs)
| Annual income (PKR) | Rate | Tax on this band |
|---|---|---|
| Up to 600,000 | 0% | No tax |
| 600,000 – 1,200,000 | 15% | 15% of amount over PKR 600,000 |
| 1,200,000 – 1,600,000 | 20% | PKR 90,000 + 20% over PKR 1,200,000 |
| 1,600,000 – 3,200,000 | 30% | PKR 170,000 + 30% over PKR 1,600,000 |
| 3,200,000 – 5,600,000 | 40% | PKR 650,000 + 40% over PKR 3,200,000 |
| Above 5,600,000 | 45% | PKR 1,610,000 + 45% over PKR 5,600,000 |
Source: Finance Act 2026 / Budget 2026-27 (effective 1 Jul 2026) — salaried slabs. Figures are general information, not tax advice, and remain pending counsel sign-off. Last updated June 2026 · Reviewed by Advocate Bilal Khan, LLB·LLM.
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