Salary · Increment · Tax Year 2026-2027
Pay Raise Tax Calculator
Got an increment? Because of progressive tax slabs you don't keep all of it. Enter your current salary and the raise to see what actually lands in your pocket.
Step by step
How the real value is worked out
Enter your current salary
This decides your current slab and how much of the raise is taxed at a higher marginal rate.
Choose amount or percent
Enter your raise in rupees, or as a percentage of your current monthly salary.
We compare net pay
Net monthly pay is worked out before and after the raise using Tax Year 2026-2027 salaried slabs.
See what you keep
The difference is your real take-home increase; the rest goes to extra income tax.
Good to know
Understanding a raise after tax
Marginal vs average
A raise is taxed at your marginal (top-slab) rate, which is usually higher than your average tax rate — so you keep less of the raise than of your base salary.
You never lose by earning more
Slabs are marginal, so crossing into a higher slab only taxes the portion above the threshold — your net pay always rises.
Negotiating tip
Knowing your keep-rate helps you judge whether a raise, bonus, or allowance restructuring gives you the best take-home.
Reading the result
A raise never leaves you worse off
The worry that crossing a slab could reduce take-home pay is the most persistent myth about progressive tax, and it is simply not how the schedule works. Only the income inside a band is taxed at that band's rate. The rupee that crosses a boundary is taxed higher; everything below it carries on exactly as before.
So you always keep something. What changes is how much of the extra you keep, which is the number this shows.
Compare the raise against inflation, not against zero
A raise that increases your take-home by less than prices rose is a real-terms pay cut, even though the number on the payslip went up. That is the comparison worth making before deciding whether an increment was reasonable — the net figure here against what the same basket now costs.
Ask about the structure, not just the number
Where an increase arrives partly as an allowance or benefit rather than as basic pay, the tax treatment can differ, and so can the knock-on effect on provident fund and gratuity, which are often calculated on basic pay. Two raises of the same headline value are not always worth the same.
Where this stops
This works on the slabs. It does not apply credits or allowances, and it does not model a mid-year raise, where only part of the year is at the new salary.
FAQs
Salary raise tax FAQs
Why don't I keep my whole raise?
Pakistan uses progressive tax slabs, so the top portion of your income is taxed at a higher marginal rate. Your raise sits on top of your current salary, so part of it is taxed at that marginal rate and you keep the rest.
What is the marginal tax rate on a raise?
It is the FBR slab rate that applies to your next rupee of income. If your raise pushes part of your income into a higher slab, different portions can be taxed at different rates.
Can a raise ever reduce my take-home pay?
No. Pakistan's slabs are marginal, not cliff-based, so earning more never lowers your net pay — you always keep a positive share of any raise.
Should I enter an amount or a percentage?
Either. Choose "Amount" to type the monthly raise in rupees, or "Percent" to enter it as a percentage of your current monthly salary.
Which slabs does this use?
The latest Tax Year 2026-2027 (Tax Year 2026-2027) FBR salaried slabs.
Related tools
Plan the rest of your salary
Turn your new salary into a full payslip, or see your complete income tax breakdown.
Open Net Salary Calculator