Income Tax Rates in Pakistan: Tax Year 2027 (2026-27)
Rates for Tax Year 2027 (1 July 2026 to 30 June 2027) under the Income Tax Ordinance, 2001, as amended by the Finance Act 2026. ATL means a person on the Active Taxpayers List; non-ATL rates apply to persons not on the list.
Salaried individuals
Apply where salary is more than 75% of taxable income. No surcharge applies to salaried individuals from Tax Year 2027.
| Annual taxable income (Rs) | Tax |
|---|---|
| Up to 600,000 | Nil |
| 600,001 to 1,200,000 | 1% of the amount above 600,000 |
| 1,200,001 to 2,200,000 | 6,000 + 11% of the amount above 1,200,000 |
| 2,200,001 to 3,200,000 | 116,000 + 20% of the amount above 2,200,000 |
| 3,200,001 to 4,100,000 | 316,000 + 25% of the amount above 3,200,000 |
| 4,100,001 to 5,600,000 | 541,000 + 29% of the amount above 4,100,000 |
| 5,600,001 to 7,000,000 | 976,000 + 32% of the amount above 5,600,000 |
| Above 7,000,000 | 1,424,000 + 35% of the amount above 7,000,000 |
Work out your monthly deduction with our salary tax calculator.
Business individuals and AOPs
Apply to individuals other than salaried individuals, and to associations of persons.
| Annual taxable income (Rs) | Tax |
|---|---|
| Up to 600,000 | Nil |
| 600,001 to 1,200,000 | 15% of the amount above 600,000 |
| 1,200,001 to 1,600,000 | 90,000 + 20% of the amount above 1,200,000 |
| 1,600,001 to 3,200,000 | 170,000 + 30% of the amount above 1,600,000 |
| 3,200,001 to 5,600,000 | 650,000 + 40% of the amount above 3,200,000 |
| Above 5,600,000 | 1,610,000 + 45% of the amount above 5,600,000 |
For an AOP that is a professional firm prohibited from incorporating by the rules of its profession, the top rate is 40% instead of 45%. A surcharge under section 4AB applies where taxable income exceeds Rs 10 million.
Companies
| Type of company | Rate |
|---|---|
| Banking company | 42% |
| Small company | 20% |
| Any other company | 29% |
Super tax (section 4C)
- Income up to Rs 500 million: no super tax, except for the sectors listed below.
- Income above Rs 500 million: 8% of income.
- Banking, oil and gas exploration and fertilizer sectors: 10% of income where income exceeds Rs 150 million.
- No super tax where realised export proceeds exceed 80% of turnover for the tax year.
Property
| Section | Transaction | ATL | Non-ATL |
|---|---|---|---|
| 236C | Sale or transfer of immovable property (on gross consideration) | 2.75% | 11.5% |
| 236K | Purchase of immovable property, value up to Rs 50 million | 1.25% | 10.5% |
| 236K | Purchase, value above Rs 50 million up to Rs 100 million | 1.25% | 14.5% |
| 236K | Purchase, value above Rs 100 million | 1.25% | 18.5% |
Section 7E (deemed income on immovable property) has been omitted. Capital gains on disposal are taxed separately depending on the date of acquisition and holding period.
Motor vehicles (section 231B)
| Engine capacity | New vehicle: ATL | New vehicle: non-ATL | Transfer: ATL | Transfer: non-ATL |
|---|---|---|---|---|
| Up to 850cc | 0.5% | 1.5% | Nil | Nil |
| 851cc to 1000cc | 1% | 3% | Rs 5,000 | Rs 15,000 |
| 1001cc to 1300cc | 1.5% | 4.5% | Rs 7,500 | Rs 22,500 |
| 1301cc to 1600cc | 2% | 6% | Rs 12,500 | Rs 37,500 |
| 1601cc to 1800cc | 3% | 9% | Rs 18,750 | Rs 56,250 |
| 1801cc to 2000cc | 5% | 15% | Rs 25,000 | Rs 75,000 |
| 2001cc to 2500cc | 7% | 21% | Rs 37,500 | Rs 112,500 |
| 2501cc to 3000cc | 9% | 27% | Rs 50,000 | Rs 150,000 |
| Above 3000cc | 12% | 36% | Rs 62,500 | Rs 187,500 |
New vehicle rates are a percentage of value under section 231B(1) and (3). Transfer amounts are under section 231B(2). Special provisions apply to vehicles valued at Rs 5 million or more.
Profit on debt and dividends
| Section | Payment | ATL | Non-ATL |
|---|---|---|---|
| 151 | Profit on bank deposits and government securities | 20% | 40% |
| 151 | Profit on debt, other cases | 15% | 30% |
| 150 | Dividend, general rate | 15% | 30% |
| 150 | Dividend paid by independent power producers | 7.5% | 15% |
| 150 | Dividend from a company with no tax payable due to exemption, losses or credits | 25% | 50% |
Separate rates apply to sukuk, mutual funds and REITs.
Rent (section 155)
| Gross annual rent: individuals and AOPs (Rs) | Tax |
|---|---|
| Up to 300,000 | Nil |
| 300,001 to 600,000 | 5% of the amount above 300,000 |
| 600,001 to 2,000,000 | 15,000 + 10% of the amount above 600,000 |
| Above 2,000,000 | 155,000 + 25% of the amount above 2,000,000 |
Rent received by a company: 15% (ATL), 30% (non-ATL).
Goods, services and contracts (section 153)
| Payment | ATL | Non-ATL |
|---|---|---|
| Supply of goods by a company (other than toll manufacturing) | 5% | 10% |
| Supply of goods by others (other than toll manufacturing) | 5.5% | 11% |
| Rice, cotton seed and edible oils | 1.5% | 3% |
| IT and IT-enabled services | 4% | 8% |
| Services of doctors, lawyers, architects, accountants and software developers | 15% | 30% |
| Other services | 14% | 28% |
| Contracts executed by a company | 7.5% | 15% |
| Contracts executed by others | 8% | 16% |
Separate rates apply to toll manufacturing, advertising, port and terminal services and certain notified services.
Other
- Revenue from social media platforms received by content creators (section 154B): 5% ATL, 10% non-ATL.
- Export proceeds (section 154): 1.25%.
- Pension above Rs 10 million for persons below 70 years: 5% of the amount above Rs 10 million, plus surcharge.
Tax Hub Consultants, Sahiwal
Need the rate for a specific transaction, or a full computation? Send us the details.
Phone (040) 2090543 · 5th Floor, Sahiwal Galleria, Girls College Road, Sahiwal · info@taxhubconsultants.com
Last updated 31 October 2026. Sources: FBR Withholding Tax Rate Card for Tax Year 2027 (updated to 30 June 2026 as per the Finance Act 2026) and the Income Tax Ordinance, 2001 as amended up to 30 June 2026. This is a summary; the law prevails. Confirm the treatment of a specific transaction before relying on it.