Tax Rates
The income tax and sales tax rates for the tax year, with the source of each table.
Tax year 2027 (1 July 2026 – 30 June 2027)
Income tax
| Band | Rate | Notes | Source |
|---|---|---|---|
| Up to Rs 600,000 | 0% | — | Source |
| Rs 600,001 – Rs 1,200,000 | 1% | of the amount over Rs 600,000 | |
| Rs 1,200,001 – Rs 2,200,000 | Rs 6,000 + 11% | of the amount over Rs 1,200,000 | |
| Rs 2,200,001 – Rs 3,200,000 | Rs 116,000 + 20% | of the amount over Rs 2,200,000 | |
| Rs 3,200,001 – Rs 4,100,000 | Rs 316,000 + 25% | of the amount over Rs 3,200,000 | |
| Rs 4,100,001 – Rs 5,600,000 | Rs 541,000 + 29% | of the amount over Rs 4,100,000 | |
| Rs 5,600,001 – Rs 7,000,000 | Rs 976,000 + 32% | of the amount over Rs 5,600,000 | |
| Over Rs 7,000,000 | Rs 1,424,000 + 35% | of the amount over Rs 7,000,000 |
Applies where salary is more than 75% of taxable income. Finance Act 2026 also withdrew the 9% surcharge on salaried individuals (FBR Circular 2 of 2026-27).
| Band | Rate | Notes | Source |
|---|---|---|---|
| Up to Rs 600,000 | 0% | — | Source |
| Rs 600,001 – Rs 1,200,000 | 15% | of the amount over Rs 600,000 | |
| Rs 1,200,001 – Rs 1,600,000 | Rs 90,000 + 20% | of the amount over Rs 1,200,000 | |
| Rs 1,600,001 – Rs 3,200,000 | Rs 170,000 + 30% | of the amount over Rs 1,600,000 | |
| Rs 3,200,001 – Rs 5,600,000 | Rs 650,000 + 40% | of the amount over Rs 3,200,000 | |
| Over Rs 5,600,000 | Rs 1,610,000 + 45% | of the amount over Rs 5,600,000; 40% for professional firms that may not incorporate |
Business and other non-salary income. Unchanged by Finance Act 2026. A 10% surcharge on the tax still applies where taxable income exceeds Rs 10 million (s.4AB).
| Band | Rate | Notes | Source |
|---|---|---|---|
| Banking company | 42% | Tax year 2027 onwards (43% for 2026) | Source |
| Small company | 20% | — | |
| Any other company | 29% | — |
First Schedule, Part I, Division II. Super tax may apply on top.
Super tax on high earning persons (s.4C)
| Band | Rate | Notes | Source |
|---|---|---|---|
| Banking company, income over Rs 150 million | 10% | of the income | Source |
| Person taxed under Part I of the Fifth Schedule (petroleum), income over Rs 150 million | 10% | of the income | |
| Fertilizer sellers, income over Rs 150 million | 10% | of the income | |
| Any other person, income over Rs 500 million | 8% | of the income; down from 10% | |
| Any other person, income up to Rs 500 million | 0% | Super tax abolished at this level |
Finance Act 2026. Exporters with more than 80% export turnover are fully exempt (Second Schedule clause 104B). Table read from scanned FBR documents; check wording before publishing.
Sales tax
| Band | Rate | Notes | Source |
|---|---|---|---|
| Taxable supplies and imports | 18% | — | Source |
Sales Tax Act 1990 s.3(1), as amended to 30 June 2026. Reduced, higher and fixed rates apply to listed goods.
Checked on: · Owner: Umair Manzoor & Co. Chartered Accountants
Rates are taken from the Finance Act for each tax year and the FBR’s published schedules.