What is the income tax slab for salaried persons in Pakistan 2026-27?

For FY 2026-27, salaried persons in Pakistan pay: 0% on annual income up to Rs 600,000; 1% on Rs 600,001 to Rs 1,200,000; 11% on Rs 1,200,001 to Rs 2,200,000 (plus Rs 6,000 base); 20% on Rs 2,200,001 to Rs 3,200,000 (plus Rs 116,000 base); 25% on Rs 3,200,001 to Rs 4,100,000 (plus Rs 316,000 base); 29% on Rs 4,100,001 to Rs 5,600,000 (plus Rs 541,000 base); 32% on Rs 5,600,001 to Rs 7,000,000 (plus Rs 976,000 base); and 35% on income above Rs 7,000,000 (plus Rs 1,424,000 base). The surcharge on salaried individuals has been abolished in Budget 2026-27.

Is there any income tax relief for salaried class in Budget 2026-27?

Yes. Budget 2026-27 provides tax relief across four income slabs: the rate for Rs 2.2M–3.2M was cut from 23% to 20%, Rs 3.2M–4.1M from 30% to 25%, Rs 4.1M–5.6M from 35% to 29%, and Rs 5.6M–7M from 35% to 32%. The surcharge previously imposed on salaried individuals has also been completely abolished. These changes are effective from July 1, 2026.

What is the tax-free income limit in Pakistan 2026-27?

The tax-free threshold remains unchanged at Rs 600,000 per year (Rs 50,000 per month) for salaried individuals in FY 2026-27.

How is monthly income tax deducted from salary in Pakistan?

Annual income tax is calculated by multiplying gross monthly salary by 12 and applying FBR tax slabs. The resulting annual tax is then divided by 12 and deducted each month by the employer through withholding tax (salary deduction at source).

Has the surcharge been removed for salaried employees in 2026-27?

Yes. The surcharge on salaried individuals has been completely abolished in Budget 2026-27. It had been reduced from 10% to 9% in the previous budget, and has now been entirely removed effective July 1, 2026.

How much salary increase did Pakistan Army officers get in Budget 2026-27?

Pakistan Army commissioned officers received a 50% Special Ad-hoc Relief Allowance on their running basic pay in Budget 2026-27, in addition to the 7% Ad-hoc Relief Allowance (ARA) on basic pay applicable to all federal government employees. This is effective from July 1, 2026.

How much salary increase did Pakistan Army soldiers and JCOs get in 2026-27?

Soldiers and Junior Commissioned Officers (JCOs) of the Pakistan Army received a 20% increase in their allowances in Budget 2026-27, along with the 7% ARA on basic pay applicable to all BPS 1-22 federal employees. This is effective from July 1, 2026.

What is the pension increase for retired Pakistan Army personnel in 2026-27?

Retired Pakistan Army personnel received a 15% increase on their net pension in Budget 2026-27. The military pension budget has been set at Rs 822 billion for FY 2026-27.

What is the total defence budget of Pakistan for 2026-27?

Pakistan's defence budget for FY 2026-27 is Rs 3 trillion, a 17.65% increase over the previous year. Of this, Rs 967.55 billion is allocated for salaries and allowances of military personnel and civilian defence employees, representing a 14.36% increase.

What is the salary of a BPS-17 officer (Captain) in Pakistan Army in 2026?

A Captain (BPS-17) in the Pakistan Army has a basic pay of approximately Rs 54,140 to Rs 72,000 per month as per the 2026 pay scale. With the 50% Special Ad-hoc Relief Allowance and 7% ARA added in Budget 2026-27, the total monthly increase is approximately Rs 30,000 to Rs 42,000, depending on the specific basic pay.

What BPS grade is a Major in the Pakistan Army?

A Major in the Pakistan Army falls under BPS-18, with a basic pay ranging from approximately Rs 68,330 to Rs 88,000 per month as per the 2026 federal pay scale.

Income Tax Calculator and Armed Forces Salary Calculator 2026-27

Annual Income Slabs (PKR)	Applicable Income Tax Rate
Up to Rs 600,000	Exempt (0%)
Rs 600,001 – Rs 1,200,000	1% on excess of 600K
Rs 1,200,001 – Rs 2,200,000	Rs 6,000 + 11% on excess
Rs 2,200,001 – Rs 3,200,000	Rs 116,000 + 20% on excess
Rs 3,200,001 – Rs 4,100,000	Rs 316,000 + 25% on excess
Rs 4,100,001 – Rs 5,600,000	Rs 541,000 + 29% on excess
Rs 5,600,001 – Rs 7,000,000	Rs 976,000 + 32% on excess
Above Rs 7,000,000	Rs 1,424,000 + 35% on excess

Annual Income Slabs (PKR)

Applicable Income Tax Rate

Up to Rs 600,000

Exempt (0%)

Rs 600,001 – Rs 1,200,000

1% on excess of 600K

Rs 1,200,001 – Rs 2,200,000

Rs 6,000 + 11% on excess

Rs 2,200,001 – Rs 3,200,000

Rs 116,000 + 20% on excess

Rs 3,200,001 – Rs 4,100,000

Rs 316,000 + 25% on excess

Rs 4,100,001 – Rs 5,600,000

Rs 541,000 + 29% on excess

Rs 5,600,001 – Rs 7,000,000

Rs 976,000 + 32% on excess

Above Rs 7,000,000

Rs 1,424,000 + 35% on excess

Pakistan Armed Forces Salary Calculator 2026-27: Updated BPS Scales & FBR Tax Slabs

Introduction Calculate your exact monthly income with the updated Armed Forces Salary Calculator 2026-27. Designed for personnel of the Pakistan Army, Navy, and Air Force, this tool provides accurate salary estimations based on the Federal Government Budget 2026-27. Whether you are a Commissioned Officer, Junior Commissioned Officer (JCO), or a Soldier, you can now instantly verify your new pay scale and allowances.

Special Relief Allowance 2026 A major highlight of the Budget 2026-27 is the disparity in allowance rates. Commissioned Officers are granted a 50% Special Relief Allowance (SRA) on their basic pay. In contrast, JCOs and Soldiers receive a 20% allowance increase, aimed at narrowing the gap between different tiers of service.

Income Tax Calculator FBR 2026-27 Alongside military pay scales, this page features an updated Income Tax Calculator. It utilizes the new FBR Tax Slabs for Salaried Individuals effective from July 1, 2026. The Finance Bill 2026 has abolished the surcharge for salaried persons, potentially increasing your net take-home salary. Use our tool to cross-check your tax deductions against the new rates (ranging from 0% to 35%).

Income Tax & Armed Forces

Salary Adjustments

Income Tax & Armed Forces

Salary Adjustments

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