Income Tax in Pakistan 2026-27 & 2025-26
Pakistan's income tax is governed by the
Income Tax Ordinance 2001
and administered by the
Federal Board of Revenue (FBR). For salaried individuals, tax is deducted at source by employers
under the withholding provisions and deposited directly with FBR.
Business individuals file and pay tax annually through FBR's IRIS
portal.
The tax year in Pakistan runs from
July 1 to June 30. Both salaried and business individuals with annual income up to
Rs 600,000 are exempt from income tax. The
2026-27 slabs
announced in the Pakistan Budget 2026-27 expand the bracket
structure to 8 slabs (up from 6), with reduced rates on middle
incomes and new brackets covering Rs 41L–56L and Rs 56L–70L.
Key change vs 2025-26: the Rs 22L–32L bracket drops from 23% to
20%, and the Rs
32L–41L bracket drops from 30% to
25% — providing
relief to mid-level salaried earners. Higher earners above Rs 41L
now move through two additional brackets before reaching the 35% top
rate.
Important Notes
-
Tax is progressive — higher income falls into higher brackets
incrementally
-
Business individuals face higher rates than salaried employees —
use the toggle to compare
-
Rebates, deductions (Zakat, pension, etc.) can reduce taxable
income
-
A 9% surcharge applies on income tax for salaried persons
earning above Rs 10 million
-
Always verify with FBR's official portal or a tax consultant
What are the income tax slabs for salaried individuals in Pakistan
2026-27?
+
Under FBR's 2026-27 Finance Act, salaried individuals pay: 0% on
up to Rs 600,000; 1% on Rs 600,001–1,200,000; Rs 6,000 + 11% on Rs
1,200,001–2,200,000; Rs 116,000 + 20% on Rs 2,200,001–3,200,000;
Rs 316,000 + 25% on Rs 3,200,001–4,100,000; Rs 541,000 + 29% on Rs
4,100,001–5,600,000; Rs 976,000 + 32% on Rs 5,600,001–7,000,000;
and Rs 1,424,000 + 35% above Rs 7,000,000.
What changed from 2025-26 to 2026-27 income tax slabs?
+
The 2026-27 slabs add two new mid-to-high brackets (Rs 41L–56L at
29% and Rs 56L–70L at 32%), while reducing the rate in the Rs
22L–32L bracket from 23% to 20% and the Rs 32L–41L bracket from
30% to 25%. The tax-free threshold of Rs 600,000 remains
unchanged. These changes provide relief to middle-income salaried
earners while creating a more gradual step-up to the 35% top rate.
What is the minimum taxable income in Pakistan for 2026-27?
+
For salaried individuals, income up to Rs 600,000 per year (Rs
50,000 per month) is completely exempt from income tax under both
2026-27 and 2025-26 FBR slabs. If your annual salary is below this
amount, you owe zero income tax to FBR.
What is the difference between salaried and business tax slabs?
+
Salaried individuals benefit from lower tax rates under the
Finance Act. Business / non-salaried individuals are taxed at
higher rates under a separate schedule. Use the Employment Type
toggle on this calculator to compare both. Note: business slabs
for 2026-27 are not yet published — the calculator will show a
notice if you select that combination.
How do I file an income tax return in Pakistan?
+
You can file your income tax return online through FBR's IRIS
portal (iris.fbr.gov.pk). The deadline for salaried individuals is
typically September 30 each year. You'll need your CNIC, bank
statements, salary certificate, and NTN (National Tax Number).
What is Super Tax in Pakistan?
+
Super Tax is an additional levy on high-income individuals.
Individuals with income above Rs 15,000,000 (1.5 crore) are
subject to additional Super Tax ranging from 1% to 10% on the
amount exceeding the threshold. Always verify with FBR's latest
notification.
Can Zakat paid reduce income tax?
+
Yes. Zakat paid is deductible under Section 60(1) of the Income
Tax Ordinance 2001. You can subtract it from your taxable income,
effectively reducing your tax bill. Keep documentation of Zakat
paid for record purposes.
What are the income tax slabs for salaried employees in
Pakistan 2025-26?
+
Under FBR's 2025-26 Finance Act, salaried individuals pay: 0%
on income up to Rs 600,000/year; 1% on Rs 600,001–1,200,000;
Rs 6,000 + 11% on Rs 1,200,001–2,200,000; Rs 116,000 + 23% on
Rs 2,200,001–3,200,000; Rs 346,000 + 30% on Rs
3,200,001–4,100,000; and Rs 616,000 + 35% above Rs 4,100,000.
How do I calculate income tax on my salary in Pakistan?
+
To calculate income tax: (1) determine your annual taxable
income, (2) apply each FBR slab rate progressively to the
income within each bracket, (3) sum all bracket taxes. For
example, under 2026-27 slabs a monthly salary of Rs 100,000
(Rs 1.2M annual) pays 1% on the Rs 600,001–1,200,000 bracket =
Rs 6,000/year or Rs 500/month. Use HisaabKaro's income tax
calculator to compute your exact figure instantly.