Pakistan income tax rates
Statutory tax rates on the taxable income of a SALARIED individual (an individual whose salary income exceeds 75% of taxable income), under clause (2) of Division I of Part I of the First Schedule to the Income Tax Ordinance, 2001. Rates for tax year 2027 (income year 1 July 2026 to 30 June 2027), as substituted by the Finance Act, 2026. Non-salaried individuals and associations of persons are taxed on a DIFFERENT schedule — see notes.
| Current value | 8 entries — see the API for the full schedule |
|---|---|
| In force from | 2026-07-01 |
| Official source | Finance Act, 2026 (Act No. XLIII of 2026, assented by the President on 26 June 2026, published in the Gazette of Pakistan Extraordinary Part I, 26 June 2026), section 44(a)(i): in the First Schedule, Part I, Division I, clause (2), the Table substituted — the salaried-individual rate table for tax year 2027 |
| Last verified | 2026-07-24 |
| Verification | primary — No verification limitation recorded — read from the official source cited. |
| Provenance | source fingerprint |
What this value means
Statutory table verbatim (fixed amount plus marginal rate on the excess): up to Rs600,000 — 0%; Rs600,001-1,200,000 — 1% of the amount exceeding Rs600,000; Rs1,200,001-2,200,000 — Rs6,000 + 11% of the excess over Rs1,200,000; Rs2,200,001-3,200,000 — Rs116,000 + 20% of the excess over Rs2,200,000; Rs3,200,001-4,100,000 — Rs316,000 + 25% of the excess over Rs3,200,000; Rs4,100,001-5,600,000 — Rs541,000 + 29% of the excess over Rs4,100,000; Rs5,600,001-7,000,000 — Rs976,000 + 32% of the excess over Rs5,600,000; above Rs7,000,000 — Rs1,424,000 + 35% of the excess over Rs7,000,000. Relative to tax year 2026 the Finance Act 2026 cut four brackets (2.2m-3.2m from 23% to 20%; 3.2m-4.1m from 30% to 25%; 4.1m-5.6m from 35% to 29%) and inserted a new 32% band from Rs5.6m to Rs7m before the 35% top rate. SURCHARGE ABOLISHED: the Finance Act 2026 also amended the proviso to section 4AB, replacing 'a surcharge shall be payable at the rate of nine percent of the income tax imposed under Division I of Part I of the First Schedule where the income exceeds rupees ten million in a tax year' with 'no surcharge shall be payable' — so the 9% surcharge on high-earning salaried individuals is gone from tax year 2027. THE SCHEDULE YOU MUST NOT CONFUSE THIS WITH: clause (1) of the same Division I applies to individuals (other than salaried) and associations of persons and runs on entirely different thresholds and rates (up to a 45% top rate for AOPs/business individuals); an individual falls into the SALARIED table only where salary income exceeds 75% of taxable income. The exempt threshold of Rs600,000/year (Rs50,000/month) is unchanged and is NOT indexed to inflation — it has been frozen since tax year 2023 while cumulative CPI inflation has been very large, so real bracket creep is severe. Tax year 2027 covers the income year 1 July 2026 - 30 June 2027. SOURCE CAVEAT: FBR's consolidated Income Tax Ordinance on fbr.gov.pk was still the 20 February 2026 edition at confirmation and therefore shows the OLD (tax year 2026) table; the current table exists only in the Finance Act 2026 gazette PDF cited above (256 pages, ~42MB, text layer intact but rendered as binary by generic web fetchers — pull it and read pages 53-54).
Get it programmatically
curl https://asiaref.dev/v1/pk/income-tax
# $0.001 per call — x402 on Base (USDC). No key, no signup.
# History: curl https://asiaref.dev/v1/pk/income-tax/history?from=2020-01-01
# Provenance: curl https://asiaref.dev/provenance/pk/income-taxOther Pakistan series: policy interest rate · VAT rate · minimum wage · public holidays · inflation rate (CPI) · corporate tax rate