Pakistan Income Tax Rates 2026-27: Salary, Business, Company & Capital Gains
This guide summarizes key federal income-tax rates in Pakistan for the financial year 1 July 2026 to 30 June 2027 (Tax Year 2027), following the Finance Act 2026 and the Income Tax Ordinance, 2001 as amended up to 30 June 2026.
Pakistan Salary Income Tax Rates - Tax Year 2027
The following progressive rates apply to taxable income under the salaried-person schedule for Tax Year 2027. The percentage shown for each band applies to the amount exceeding the stated threshold, in addition to the fixed amount shown.
| Annual taxable income (PKR) | Tax payable |
|---|---|
| Up to Rs. 600,000 | 0% |
| Rs. 600,001 - Rs. 1,200,000 | 1% of amount exceeding Rs. 600,000 |
| Rs. 1,200,001 - Rs. 2,200,000 | Rs. 6,000 + 11% of amount exceeding Rs. 1,200,000 |
| Rs. 2,200,001 - Rs. 3,200,000 | Rs. 116,000 + 20% of amount exceeding Rs. 2,200,000 |
| Rs. 3,200,001 - Rs. 4,100,000 | Rs. 316,000 + 25% of amount exceeding Rs. 3,200,000 |
| Rs. 4,100,001 - Rs. 5,600,000 | Rs. 541,000 + 29% of amount exceeding Rs. 4,100,000 |
| Rs. 5,600,001 - Rs. 7,000,000 | Rs. 976,000 + 32% of amount exceeding Rs. 5,600,000 |
| Above Rs. 7,000,000 | Rs. 1,424,000 + 35% of amount exceeding Rs. 7,000,000 |
Non-Salaried Individuals and AOP Tax Rates
These are the normal progressive rates for individuals and associations of persons (AOPs) where the salaried schedule does not apply. Special, final and minimum tax regimes may override the normal computation for particular income streams.
| Annual taxable income (PKR) | Tax payable |
|---|---|
| Up to Rs. 600,000 | 0% |
| Rs. 600,001 - Rs. 1,200,000 | 15% of amount exceeding Rs. 600,000 |
| Rs. 1,200,001 - Rs. 1,600,000 | Rs. 90,000 + 20% of amount exceeding Rs. 1,200,000 |
| Rs. 1,600,001 - Rs. 3,200,000 | Rs. 170,000 + 30% of amount exceeding Rs. 1,600,000 |
| Rs. 3,200,001 - Rs. 5,600,000 | Rs. 650,000 + 40% of amount exceeding Rs. 3,200,000 |
| Above Rs. 5,600,000 | Rs. 1,610,000 + 45% of amount exceeding Rs. 5,600,000 |
Corporate Tax Rates in Pakistan - Tax Year 2027
Super tax
For general persons, the 2026 changes provide no super tax up to Rs. 500 million of income and an 8% rate above Rs. 500 million. Different treatment continues for specified sectors, including banking, exploration and production and fertilizer businesses; the applicable statutory schedule should therefore be checked before calculation.
Profit on Debt, Dividends and Capital Gains
| Category | Common headline rate / treatment for FY 2026-27 |
|---|---|
| Profit on debt - individual / AOP | 20% |
| Dividend - general | 15% |
| Dividend from qualifying debt-heavy mutual fund | 25% |
| Listed securities acquired on or after 1 July 2024 - ATL taxpayer | 15% |
| Listed securities - non-ATL taxpayer | Enhanced / normal-rate treatment may apply under the Ordinance and Tenth Schedule. |
Capital-gains taxation is particularly sensitive to acquisition date, holding period and ATL status. Securities acquired before 1 July 2024 and immovable property acquired on or before 30 June 2024 can be subject to different rules from later acquisitions.
Immovable Property: Capital Gains and Advance Tax
Section 7E, which imposed tax on deemed income from certain immovable property, was omitted by the Finance Act 2026. For property transactions, advance tax rates for ATL taxpayers were also rationalized: the FBR's 2026-27 salient features state a flat 2.75% collection under section 236C on sale and 1.5% under section 236K on purchase. Non-ATL and other status-based rates can be higher.
For the underlying capital gain itself, the applicable rate depends on when the property was acquired, the holding period, the nature of the property and taxpayer status. Refer to the current Income Tax Ordinance and FBR rate card before relying on a single headline percentage.
Pakistan Tax Year and Return Filing
The normal Pakistan tax year is a twelve-month period ending on 30 June and is identified by the calendar year in which it ends. Accordingly, Tax Year 2027 generally covers 1 July 2026 through 30 June 2027. Special tax years may apply where permitted under the Income Tax Ordinance.
Return filing dates and extensions can differ by taxpayer category and may be changed or extended by FBR. For current filing deadlines, use the official FBR due-date page rather than historical deadlines.
Official Pakistan Tax Resources
Disclaimer: This page is a general reference to federal tax rates and does not constitute tax advice. Rates, exemptions, withholding rules, sector-specific regimes and filing extensions may change through legislation, notifications or other lawful measures.