Monthly vs Annual Income Tax

See how your annual salary tax is deducted month by month, and what happens to the monthly deduction when your salary changes during the tax year.

Your details

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Gross salary at the start of the tax year (July).

Paid in the remaining months. Used only if the salary changed.

Monthly deduction vs annual tax Tax year 2026-2027

Enter your monthly salary to see the tax deducted each month and the total for the year.

Estimate only. This is an estimate only and is not tax advice. Your actual liability depends on exemptions, tax credits, other income and the FBR rules that apply to you.

Assumptions

  • The tax year runs from 1 July to 30 June, so month 1 is July.
  • Before the change, tax is deducted as one-twelfth of the annual tax on the original salary.
  • After the change, the remaining tax for the year is spread equally over the remaining months; the last month takes any rounding difference.
  • All of the salary entered is taxable; bonus, arrears, exempt allowances, tax credits and other income are not included.

Source of the rates

Tax year
2026-2027
Legal source
Finance Act 2026 — Income Tax Ordinance 2001, First Schedule, Part I, Division I (salaried individuals)
Last verified
12 Oct 2026

This is an estimate only and is not tax advice. Your actual liability depends on exemptions, tax credits, other income and the FBR rules that apply to you.

Printed from AsaanTax.pk — https://www.asaantax.pk/tax-calculators/monthly-vs-annual-income-tax — on 14 Oct 2026.

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Income tax slabs for salaried individuals — tax year 2026-2027

These are the slabs this calculator uses for income earned from 1 July 2026 to 30 June 2027.

Taxable income for the yearIncome tax
Up to PKR 600,000No tax
PKR 600,001 – 1,200,0001% of the amount above PKR 600,000
PKR 1,200,001 – 2,200,000PKR 6,000 + 11% of the amount above PKR 1,200,000
PKR 2,200,001 – 3,200,000PKR 116,000 + 20% of the amount above PKR 2,200,000
PKR 3,200,001 – 4,100,000PKR 316,000 + 25% of the amount above PKR 3,200,000
PKR 4,100,001 – 5,600,000PKR 541,000 + 29% of the amount above PKR 4,100,000
PKR 5,600,001 – 7,000,000PKR 976,000 + 32% of the amount above PKR 5,600,000
Above PKR 7,000,000PKR 1,424,000 + 35% of the amount above PKR 7,000,000

Source: Finance Act 2026 — Income Tax Ordinance 2001, First Schedule, Part I, Division I (salaried individuals). Last verified: 12 Oct 2026.

Monthly deduction and annual tax

Salary tax is an annual tax. Your employer estimates your salary for the whole tax year (1 July to 30 June), works out the tax on that annual amount and deducts one-twelfth of it from each monthly salary. If nothing changes, the twelve deductions add up to the tax for the year.

When your salary changes during the year

After a raise, a new job or a pay cut, the income for the year is no longer twelve times the old salary. This calculator works it out again in four steps:

  1. Income for the year = old salary x the months already paid + revised salary x the remaining months.
  2. The tax for the year is worked out on that income from the slabs.
  3. Tax already deducted = the old monthly deduction x the months already paid.
  4. The remaining tax is spread equally over the remaining months.

This is why the deduction after a raise is usually more than one-twelfth of the new annual tax: the remaining months also make up for the lower deductions at the start of the year.

What this calculator does not cover

It allows for one change of salary in the year and does not include bonus, arrears, exempt allowances, tax credits or other income. Your employer's payroll may also spread an adjustment differently, so the figures on your payslip can differ.