Calculation Methodology & Legislation
How Your Calculation Works (Pakistan • 2026-27)
This calculation tool operates strictly in accordance with statutory tax brackets and financial schedules published by Federal Board of Revenue (FBR) for the 2026-27 fiscal tax year (Pakistan Finance Act 2025/2026).
Computes progressive income tax under FBR statutory salary slabs. Annual earnings up to PKR 600,000 (PKR 50,000/mo) are 0% tax-free. Slabs scale from 1% up to 35% above PKR 7 Million. Monthly tax is calculated as annual tax divided by 12.
Core Mathematical FormulaStatutory 2026-27
Net Salary = Gross Salary − Progressive Slabs Tax (5%–35%) + Applicable High-Income SurchargesOfficial Statutory Tax Schedule (2026-27)
| Bracket / Slab | Statutory Rate | Tax Treatment |
|---|---|---|
| Up to PKR 600,000 (0%) | 0% | Tax-Free Allowance |
| PKR 600,001 - 1,200,000 (1%) | 1% | Progressive 1% |
| PKR 1,200,001 - 2,200,000 (11%) | 11% | Progressive 11% |
| PKR 2,200,001 - 3,200,000 (20%) | 20% | Progressive 20% |
| PKR 3,200,001 - 4,100,000 (25%) | 25% | Progressive 25% |
| PKR 4,100,001 - 5,600,000 (29%) | 29% | Progressive 29% |
| PKR 5,600,001 - 7,000,000 (32%) | 32% | Progressive 32% |
| Above PKR 7,000,000 (35%) | 35% | Progressive 35% |
Statutory Allowances & Deductions
Basic Personal Allowance / Exemption
FBR provides a 0% tax threshold on annual salary income up to PKR 600,000 (PKR 50,000 per month).
Reliefs & Allowable Deductions
Medical allowance exemptions (up to 10% of basic salary) and approved charitable contributions reduce taxable salary under FBR rules.
Statutory Authority Verified (2026-27)Audited against published schedules from Federal Board of Revenue (FBR).