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Qanoon Digest

Multi-year salary tax

Tax on the same salary changed every year from 2024 to 2027 because each Finance Act replaced the salaried table. A salary of Rs 1,800,000 a year paid Rs 90,000 in tax year 2024, Rs 120,000 in 2025 and Rs 72,000 in 2026 and 2027. Enter a salary for each year to compare.

The amounts below are
Rs

1 July 2023 to 30 June 2024

Rs

1 July 2024 to 30 June 2025. Copied from tax year 2024

Rs

1 July 2025 to 30 June 2026. Copied from tax year 2024

Rs

1 July 2026 to 30 June 2027. Copied from tax year 2024

Tax over the four years

Rs 0

All figures below are yearly.

Tax yearSalaryTaxTake-homeAverage rate
Total

Tax in each year

How the tax is worked out for each year

Each salary is turned into a yearly figure and taxed under the salaried table for its own tax year. The slab's fixed amount is added to its percentage of the salary above the slab's start, so only the part of the salary inside a slab is taxed at that slab's rate. Where the yearly salary is above Rs 10,000,000, the section 4AB surcharge for that year is added on top of the slab tax.

A tax year runs from 1 July to 30 June and takes the name of the year it ends in: tax year 2024 is 1 July 2023 to 30 June 2024, tax year 2025 is 1 July 2024 to 30 June 2025, and so on.

Tax year 2024 salaried rates

1 July 2023 to 30 June 2024. Finance Act, 2023 table, quoted as the superseded table in later editions.

Yearly taxable salaryTax
Rs 0 to Rs 600,0000%
Rs 600,001 to Rs 1,200,0002.5% of the amount above Rs 600,000
Rs 1,200,001 to Rs 2,400,000Rs 15,000 + 12.5% of the amount above Rs 1,200,000
Rs 2,400,001 to Rs 3,600,000Rs 165,000 + 22.5% of the amount above Rs 2,400,000
Rs 3,600,001 to Rs 6,000,000Rs 435,000 + 27.5% of the amount above Rs 3,600,000
Above Rs 6,000,000Rs 1,095,000 + 35% of the amount above Rs 6,000,000

Tax year 2025 salaried rates

1 July 2024 to 30 June 2025. Finance Act, 2024 table.

Yearly taxable salaryTax
Rs 0 to Rs 600,0000%
Rs 600,001 to Rs 1,200,0005% of the amount above Rs 600,000
Rs 1,200,001 to Rs 2,200,000Rs 30,000 + 15% of the amount above Rs 1,200,000
Rs 2,200,001 to Rs 3,200,000Rs 180,000 + 25% of the amount above Rs 2,200,000
Rs 3,200,001 to Rs 4,100,000Rs 430,000 + 30% of the amount above Rs 3,200,000
Above Rs 4,100,000Rs 700,000 + 35% of the amount above Rs 4,100,000

Tax year 2026 salaried rates

1 July 2025 to 30 June 2026. Finance Act, 2025 table.

Yearly taxable salaryTax
Rs 0 to Rs 600,0000%
Rs 600,001 to Rs 1,200,0001% of the amount above Rs 600,000
Rs 1,200,001 to Rs 2,200,000Rs 6,000 + 11% of the amount above Rs 1,200,000
Rs 2,200,001 to Rs 3,200,000Rs 116,000 + 23% of the amount above Rs 2,200,000
Rs 3,200,001 to Rs 4,100,000Rs 346,000 + 30% of the amount above Rs 3,200,000
Above Rs 4,100,000Rs 616,000 + 35% of the amount above Rs 4,100,000

Tax year 2027 salaried rates

1 July 2026 to 30 June 2027. Finance Act, 2026 table, printed page 509 of the edition amended to 30.06.2026.

Yearly taxable salaryTax
Rs 0 to Rs 600,0000%
Rs 600,001 to Rs 1,200,0001% of the amount above Rs 600,000
Rs 1,200,001 to Rs 2,200,000Rs 6,000 + 11% of the amount above Rs 1,200,000
Rs 2,200,001 to Rs 3,200,000Rs 116,000 + 20% of the amount above Rs 2,200,000
Rs 3,200,001 to Rs 4,100,000Rs 316,000 + 25% of the amount above Rs 3,200,000
Rs 4,100,001 to Rs 5,600,000Rs 541,000 + 29% of the amount above Rs 4,100,000
Rs 5,600,001 to Rs 7,000,000Rs 976,000 + 32% of the amount above Rs 5,600,000
Above Rs 7,000,000Rs 1,424,000 + 35% of the amount above Rs 7,000,000

Surcharge on salaried people, section 4AB

Tax yearSurcharge where taxable income is above Rs 10,000,000
20240%
202510%
20269%
20270%

Section 4AB was inserted by the Finance Act, 2024, so there is no surcharge in tax year 2024. The Finance Act, 2026 substituted its proviso so that no surcharge is payable on income under the head Salary from tax year 2027. Super tax under section 4C applies only where income passes Rs 150 million, and is added when it does.

This is an estimate for an individual whose salary is more than 75% of taxable income in each year. It does not deduct tax credits or reductions, does not include other income, and does not replace the tax your employer works out under section 149.

Where the rates come from

Every rate is read from the Income Tax Ordinance, 2001 as consolidated by FBR. The rates on this page were last checked against the official text on 2026-09-26.

Common questions

Why is the tax on the same salary different in each tax year?

Each Finance Act substituted the salaried rate table in Division I of Part I of the First Schedule. The tax-free limit stayed at Rs 600,000 a year from tax year 2024 to 2027, but the slab widths and rates changed, and the section 4AB surcharge on salaried people changed too.

Which dates does each tax year cover?

A tax year runs from 1 July to the following 30 June and is named after the year it ends in. Tax year 2024 is 1 July 2023 to 30 June 2024; Tax year 2025 is 1 July 2024 to 30 June 2025; Tax year 2026 is 1 July 2025 to 30 June 2026; Tax year 2027 is 1 July 2026 to 30 June 2027.

Which year had the highest tax on a middle income salary?

For a salary of Rs 1,800,000 a year, tax year 2025 had the highest tax at Rs 120,000, against Rs 90,000 in 2024 and Rs 72,000 in 2026 and 2027. The ranking can differ at other salaries, which is why the calculator lets you enter your own figures.

Is the surcharge included?

Yes. Where taxable income is above Rs 10,000,000, the calculator adds the section 4AB surcharge at the salaried rate for that year: 2024: 0%, 2025: 10%, 2026: 9%, 2027: 0%. Section 4AB did not exist for tax year 2024.

Does the calculator include tax credits or other income?

No. It applies the salaried table to the yearly taxable salary you enter for each year. Tax credits, reductions and income under other heads are not included, and the salaried table only applies where salary is more than 75% of taxable income.