Income Tax Slab Pakistan 2026 — FBR Tax Rates for Salaried & Business

Filing Deadline: September 30, 2026

File your FBR income tax return by September 30, 2026. Late filing penalty: Rs. 1,000/month for individuals. Businesses may face higher penalties.

Income Tax Slab for Salaried Persons 2025–26

Pakistan uses a progressive tax slab system — higher income means a higher rate, but only on the portion above each threshold. Salaried persons (those earning 75% or more from salary) have different slabs from business individuals.

Annual Taxable Income	Tax Rate	Tax Calculation
Up to Rs. 600,000	0%	Nil
Rs. 600,001 – Rs. 1,200,000	2.5%	2.5% of amount above Rs. 600,000
Rs. 1,200,001 – Rs. 2,200,000	12.5%	Rs. 15,000 + 12.5% above Rs. 1,200,000
Rs. 2,200,001 – Rs. 3,200,000	22.5%	Rs. 140,000 + 22.5% above Rs. 2,200,000
Rs. 3,200,001 – Rs. 4,100,000	27.5%	Rs. 365,000 + 27.5% above Rs. 3,200,000
Rs. 4,100,001 – Rs. 6,000,000	32.5%	Rs. 612,500 + 32.5% above Rs. 4,100,000
Above Rs. 6,000,000	35%	Rs. 1,230,000 + 35% above Rs. 6,000,000

Note: Monthly salary = Annual / 12. If monthly salary is Rs. 100,000 (Rs. 12,00,000 annual), annual tax = Rs. 15,000. Monthly deduction = Rs. 1,250. Employer deducts this from salary under Section 149.

Income Tax Slab for Business Individuals & AOP 2025–26

Self-employed persons, sole proprietors, freelancers, and Associations of Persons (AOPs) use the following slabs. These are slightly different from the salaried slabs.

Annual Taxable Income	Tax Rate	Tax Calculation
Up to Rs. 600,000	0%	Nil
Rs. 600,001 – Rs. 1,200,000	15%	15% of amount above Rs. 600,000
Rs. 1,200,001 – Rs. 1,600,000	20%	Rs. 90,000 + 20% above Rs. 1,200,000
Rs. 1,600,001 – Rs. 3,200,000	25%	Rs. 170,000 + 25% above Rs. 1,600,000
Rs. 3,200,001 – Rs. 5,600,000	30%	Rs. 570,000 + 30% above Rs. 3,200,000
Above Rs. 5,600,000	35%	Rs. 1,290,000 + 35% above Rs. 5,600,000

Corporate Tax Rates 2025–26

Entity Type	Tax Rate	Notes
Private Limited Company	29%	On net taxable income
Public Listed Company	29%	Super tax may apply
Small Company	20%	Turnover ≤ Rs. 100M, employees ≤ 250
Banking Company	39%	Includes 10% additional levy
AOP (Business)	As per individual slabs	Rate varies by income

Super Tax 2025–26

Super Tax (Section 4C) applies to high-income entities — both individuals and companies. It was introduced to generate extra revenue:

Income Tier	Super Tax Rate
Rs. 150M – Rs. 200M	1%
Rs. 200M – Rs. 250M	2%
Rs. 250M – Rs. 300M	3%
Rs. 300M – Rs. 350M	4%
Rs. 350M – Rs. 400M	6%
Rs. 400M – Rs. 500M	8%
Above Rs. 500M	10%

Minimum Turnover Tax

If your calculated income tax is lower than 1.25% of turnover, you must pay the turnover tax instead (Section 113). This prevents businesses from showing artificial losses to reduce tax.

Example: Business with turnover Rs. 5 crore but showing only Rs. 2 lakh profit (4% margin). Normal tax on Rs. 2L = Rs. 24,000. But minimum turnover tax = 1.25% × Rs. 5 crore = Rs. 62,500. Pays Rs. 62,500.

Tax on Salary — Practical Examples

Monthly Salary	Annual Salary	Annual Tax	Monthly Deduction
Rs. 50,000	Rs. 6,00,000	Nil (Rs. 0)	Rs. 0
Rs. 75,000	Rs. 9,00,000	Rs. 7,500	Rs. 625
Rs. 100,000	Rs. 12,00,000	Rs. 15,000	Rs. 1,250
Rs. 150,000	Rs. 18,00,000	Rs. 77,500	Rs. 6,458
Rs. 200,000	Rs. 24,00,000	Rs. 2,02,500	Rs. 16,875
Rs. 300,000	Rs. 36,00,000	Rs. 5,35,000	Rs. 44,583
Rs. 500,000	Rs. 60,00,000	Rs. 12,30,000	Rs. 1,02,500

Frequently Asked Questions

Is tax calculated on gross salary or net salary?

Tax is calculated on taxable income — which is gross salary minus allowable deductions. Standard deductions include: zakat (if paid through salary), provident fund contributions, and certain allowances (medical allowance up to Rs. 10% of basic salary is tax-exempt). The employer applies the net taxable salary to the slab table.

If my employer deducts tax from salary, do I still need to file a return?

Yes, you must still file an annual income tax return on FBR IRIS by September 30. Employers deduct WHT monthly (Section 149) and deposit it to FBR, but the employee must separately file Form 114(I) to reconcile, claim refunds, and appear on the ATL list. Not filing means you're a non-filer even if tax was deducted.

What is the tax rate on bonus income in Pakistan?

Bonus is treated as salary income. It's added to your regular salary for the month it's paid, and the combined amount is taxed at the applicable slab rate. Many employees receive a large bonus in one month, pushing their monthly effective rate higher — but the annual tax is recalculated at year-end and any excess deduction is refundable.

What deductions can I claim to reduce my income tax?

Allowable deductions for individuals include: Zakat paid, contributions to approved pension funds, donations to approved charitable organizations (up to 30% of taxable income), investment in equity schemes (Sec 62), investment in life insurance premium (Sec 63). Medical allowance up to 10% of basic salary is also exempt. A good tax consultant can identify all applicable deductions for your situation.

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