Budget 2026-27 impact on salary tax
Compare estimated annual tax for the same salary under 2025-26 and 2026-27, then read what actually moved between the two tables. A positive change means more tax; a negative change means estimated savings.
Estimated monthly take-home change: Rs 0. Each year uses the schedule enacted for that tax year.
Example salaries
| Monthly salary | 2025-26 | 2026-27 | Change |
|---|---|---|---|
| Rs 60,000 | Rs 1,200 | Rs 1,200 | Rs 0 |
| Rs 80,000 | Rs 3,600 | Rs 3,600 | Rs 0 |
| Rs 100,000 | Rs 6,000 | Rs 6,000 | Rs 0 |
| Rs 150,000 | Rs 72,000 | Rs 72,000 | Rs 0 |
| Rs 250,000 | Rs 300,000 | Rs 276,000 | −Rs 24,000 |
| Rs 350,000 | Rs 651,000 | Rs 570,000 | −Rs 81,000 |
This compares estimates using schedules checked against the relevant FBR Finance Acts for each tax year. Individual circumstances, credits, and withholding can change your result.
What changed in the table itself
Both tables tax annual taxable income up to Rs 2,200,000 identically: the first 3 bands share their boundaries, their rates and their opening figures. Above that line, 2026-27 starts to differ.
Above Rs 4,100,000, 2025-26 charged a single 35% on the whole stretch. 2026-27 divides that stretch into 3 bands (29% from Rs 4,100,000, 32% from Rs 5,600,000, 35% from Rs 7,000,000), so income reaches the top rate through steps the earlier table never had.
Above Rs 10,000,000 of taxable income, 2025-26 added a 9% surcharge (section 4AB) on the tax the table produced. The published 2026-27 schedule carries no surcharge, and none is stored for that year here.
Both tables end at the same top rate of 35%, so the highest published rate did not move — what moved is the route income takes to reach it.
Band by band
| Annual taxable income | 2025-26 | 2026-27 | Change |
|---|---|---|---|
| Rs 0 – Rs 600,000 | 0% | 0% | No change |
| Rs 600,000 – Rs 1,200,000 | 1% | 1% | No change |
| Rs 1,200,000 – Rs 2,200,000 | 11% | 11% | No change |
| Rs 2,200,000 – Rs 3,200,000 | 23% | 20% | 3% lower |
| Rs 3,200,000 – Rs 4,100,000 | 30% | 25% | 5% lower |
| Rs 4,100,000 – Rs 5,600,000 | 35% | 29% | 6% lower |
| Rs 5,600,000 – Rs 7,000,000 | 35% | 32% | 3% lower |
| Rs 7,000,000 and above | 35% | 35% | Same rate, new band |
This table shows where each year changed its rate, not what your own tax will be. Rates apply to the income inside each band, so use the calculator above for an estimate.
How to read the difference
The annual change is the difference between what the two tables charge on the same full-year salary. Divide it by twelve for the monthly effect — the calculator shows both figures so no reader has to hold arithmetic in their head.
Each band opens with a fixed amount, which is the tax already charged by the bands below it. That is why the top band here can keep the same rate and still show a different opening figure: the bands feeding into it were re-cut, so what accumulated under them moved.
Two salaries in the same band can still show different changes if part of one of them reaches into a higher band. That is why the worked examples above sit on fixed amounts, and your own figure may land somewhere else.
Questions people ask
Does a lower band rate cut my tax by that percentage?
No. Each rate applies only to the slice of income inside that band, not to the whole salary. That is why one band change lands differently on different salaries. The calculator lists the amount falling in each band and the tax it produces there.
Which tax year should this comparison run for?
Use the year the income belongs to, because a table applies to the tax year it was enacted for. 2025-26 is here to check a previous year's figure, while a current salary or payroll estimate follows the 2026-27 schedule.
Does the withdrawn surcharge affect every salaried person?
It applied only above an income threshold. For 2025-26 the stored rule opens at Rs 10,000,000 of taxable income at 9%, so income below that line paid no surcharge in that year either. Other income, reliefs and withholding can still change your own position.
What if the Finance Act is amended after this page was checked?
These pages state the schedule stored for a tax year, and each schedule carries the date it was last verified beside its sources. If a Budget or an amendment moves a figure, confirm it against the current FBR document before relying on a number here — this site reads published tables and has no access to your return or your payroll record.
How do I check this against what my employer deducted?
Payroll applies the year's table to your annual salary and takes one twelfth each month, so the deduction follows the annual schedule rather than that month's pay alone. Compare the annual estimate on this page with the annual figure on your payslip or salary statement, and ask your employer or a tax adviser about any gap you cannot explain.
Sources for the 2025-26 schedule
- Finance Bill 2025 — Division I salaried table
- Salient Features of Budget 2025-26
- Finance Act 2025 (gazette copy)
How far this check goes. Checked on 2026-10-10 against the Finance Bill 2025 and the Salient Features, which is where the surcharge cut from 10% to 9% for salaried individuals is recorded. The gazette copy of the Finance Act 2025 is a scanned image with no text layer, so this table was confirmed from the text-bearing documents above and from annotated reproductions published by chartered accountant firms — not extracted from the scan.
Last verified: 10 October 2026 · Source: FBR
Sources for the 2026-27 schedule
- Finance Bill 2026 — Division I salaried table
- Salient Features of Budget 2026-27
- Finance Act 2026 (gazette copy)
How far this check goes. Checked on 2026-10-10 against the Finance Bill 2026 and the Salient Features, both live on that date. The Finance Act 2026 is the enacted counterpart; its gazette PDF is a scanned image, so the band figures were confirmed from the text-bearing FBR documents above rather than extracted from the scan.
Last verified: 10 October 2026 · Source: FBR
For estimation only. Verify with FBR or a tax professional.