The government has proposed a major revision in income tax structure for salaried individuals in the Budget 2026-27, aiming to provide relief amid rising inflation and economic pressure.
Federal Finance Minister Muhammad Aurangzeb, while presenting the budget in the National Assembly, announced that the surcharge imposed on salaried persons is proposed to be completely abolished in the new fiscal year. Previously, the surcharge had already been reduced from 10% to 9% in the last budget.
According to the Finance Bill 2026-27, the government has restructured the income tax system for salaried individuals by increasing the number of slabs from six to eight.
Calculate your monthly income tax
To help taxpayers understand the impact of the new tax structure, a salary tax calculator can be used below.
Enter your monthly or annual salary in the calculator below to:
- Identify your applicable tax slab
- Calculate estimated annual tax
- See monthly tax deduction
- Understand net take-home salary
The calculation is based on the proposed Budget 2026-27 income tax rates.
