FBR Tax Slabs 2026-27: What Changed for Salaried, Business, and Freelance Taxpayers in Pakistan
Pakistan’s federal budget for 2026-27 took effect on July 1, 2026, and it changed some taxes while leaving others exactly as they were. Here’s a complete breakdown of what actually moved, and what didn’t, so you know which calculator applies to you and why.
Salary Tax Slabs 2026-27 — the big changes
This is where the real relief landed. The government cut rates across the middle brackets and abolished the salaried-class surcharge entirely.
| Annual Income Range | 2025-26 Rate | 2026-27 Rate |
|---|---|---|
| Rs 2.2M – 3.2M | 23% | 20% |
| Rs 3.2M – 4.1M | 30% | 25% |
| Rs 4.1M – 5.6M | 35% | 29% |
| Rs 5.6M – 7M | 35% | 32% |
| Above Rs 7M | 35% | 35% |
The top 35% bracket now only kicks in above Rs 7 million a year (up from Rs 4.1 million), and the salaried-class surcharge has been removed completely. Try the Salary Tax Calculator to see your exact numbers for 2026-27.
Business & AOP Tax — unchanged
Despite the salaried-class relief, non-salaried individual and AOP tax slabs were left untouched for 2026-27 — the budget’s tax relief was targeted specifically at salaried employees. Use the Business Tax Calculator to work out your liability.
Rental Income Withholding Tax — unchanged
Section 155 withholding tax on rental/property income also carries over unchanged from 2025-26, for both individuals/AOPs and companies, filer and non-filer. Calculate yours with the Rent Withholding Tax Calculator.
Freelancer & IT Export Tax — unchanged
The Section 154A final tax rates for IT and IT-enabled export income — 0.25% for PSEB-registered filers, 1% for non-PSEB filers — remain the same for 2026-27. See our Freelancer Tax Calculator to check which rate applies to you.
Sales Tax (GST/VAT) on Goods & Services — unchanged
The standard 18% federal sales tax on goods stays the same. Pakistan doesn’t have a separate VAT — sales tax on goods and provincial sales tax on services do that job. Use the Supply of Goods Tax Calculator or the VAT / Sales Tax Calculator to add or remove tax from any amount.
PTA Mobile Phone Tax — unchanged
A proposal to cut the regulatory duty on smartphones from 25% to 18% was dropped from the final 2026-27 budget after pushback from local phone assemblers, so PTA registration tax stays the same. Check your device with the PTA Tax Calculator.
What about the “non-filer” category?
FBR has signaled plans to eventually phase out the non-filer category in favor of a compliant/non-compliant framework, but as of now this remains a gradual, pending rollout via ordinance and hasn’t taken legal effect. We’ll update this post once it does.
Bookmark this page and check back — we update every calculator on this site as soon as FBR’s rates change.