Tax slabs · 2026-27
Income tax slabs 2026-27
The complete FBR slab tables for tax year 2026-27 (1 July 2026 – 30 June 2027) — one for salaried persons, one for non-salaried individuals and AOPs. The two tables are different; make sure you read the right one.
Salaried persons — slabs for 2026-27
These are the rates your employer uses when deducting tax from your salary under Section 149. The first Rs 6,00,000 of salary in the year is tax-free.
| Annual taxable income | Rate | Tax at the top of the slab |
|---|---|---|
| Rs 0 – Rs 6,00,000 | Nil | Rs 0 |
| Rs 6,00,000 – Rs 12,00,000 | 1% | Rs 6,000 |
| Rs 12,00,000 – Rs 22,00,000 | 11% | Rs 1,16,000 |
| Rs 22,00,000 – Rs 32,00,000 | 20% | Rs 3,16,000 |
| Rs 32,00,000 – Rs 41,00,000 | 25% | Rs 5,41,000 |
| Rs 41,00,000 – Rs 56,00,000 | 29% | Rs 9,76,000 |
| Rs 56,00,000 – Rs 70,00,000 | 32% | Rs 14,24,000 |
| Above Rs 70,00,000 | 35% | Rs 14,24,000 + 35% of the excess |
There is no surcharge on salaried income in 2026-27 — the 9% Section 4AB surcharge that applied in 2025-26 was abolished for salaried persons by the Finance Act 2026.
Worked check: a salary of Rs 1,00,000 a month is Rs 12,00,000 a year. Only the top Rs 6,00,000 is taxed, at 1% — tax Rs 6,000 a year, Rs 500 a month. Try it in the salary tax calculator.
Non-salaried individuals & AOP — slabs for 2026-27
For business, freelance and professional income, and members of an association of persons. These slabs did not change in the Finance Act 2026.
| Annual taxable income | Rate | Tax at the top of the slab |
|---|---|---|
| Rs 0 – Rs 6,00,000 | Nil | Rs 0 |
| Rs 6,00,000 – Rs 12,00,000 | 15% | Rs 90,000 |
| Rs 12,00,000 – Rs 16,00,000 | 20% | Rs 1,70,000 |
| Rs 16,00,000 – Rs 32,00,000 | 30% | Rs 6,50,000 |
| Rs 32,00,000 – Rs 56,00,000 | 40% | Rs 16,10,000 |
| Above Rs 56,00,000 | 45% | Rs 16,10,000 + 45% of the excess |
A surcharge of 10% of the tax (Section 4AB) applies where annual income exceeds Rs 1,00,00,000. Use the non-salaried calculator for this table — never the salary calculator.
How slab tax works
Tax is charged in slices. If your annual salary is Rs 30,00,000, you do not pay 20% of everything. You pay: nothing on the first Rs 6,00,000; 1% on the next Rs 6,00,000 (Rs 6,000); 11% on the next Rs 10,00,000 (Rs 1,10,000); and 20% only on the Rs 8,00,000 above Rs 22,00,000 (Rs 1,60,000). Total: Rs 2,76,000 — an effective rate of 9.2%, even though your top (marginal) rate is 20%.
Source: FBR Withholding Income Tax Rate Card for FY2026-27 (First Schedule, Part I, Income Tax Ordinance 2001, as amended by the Finance Act 2026) — last checked 4 November 2026. See the methodology page.