Pakistan income tax slabs 2027
The complete rate tables for Tax Year 2027 (1 July 2026 - 30 June 2027), as set by the Finance Act 2026. Each rate applies only to the portion of income inside its slab.
Rates verified 2026-10-10 against the Finance Act 2026 for Tax Year 2027 (1 July 2026 - 30 June 2027).
Salaried individuals
Applies where salary is more than 75% of your taxable income (section 149). The 9% surcharge on salaries above Rs 1 crore was abolished by the Finance Act 2026.
| Annual taxable income | Tax |
|---|---|
| Up to Rs 6,00,000 | Nil |
| Rs 6,00,000 – Rs 12,00,000 | 1% of the amount exceeding Rs 6,00,000 |
| Rs 12,00,000 – Rs 22,00,000 | Rs 6,000 + 11% of the amount exceeding Rs 12,00,000 |
| Rs 22,00,000 – Rs 32,00,000 | Rs 1,16,000 + 20% of the amount exceeding Rs 22,00,000 |
| Rs 32,00,000 – Rs 41,00,000 | Rs 3,16,000 + 25% of the amount exceeding Rs 32,00,000 |
| Rs 41,00,000 – Rs 56,00,000 | Rs 5,41,000 + 29% of the amount exceeding Rs 41,00,000 |
| Rs 56,00,000 – Rs 70,00,000 | Rs 9,76,000 + 32% of the amount exceeding Rs 56,00,000 |
| Above Rs 70,00,000 | Rs 14,24,000 + 35% of the amount exceeding Rs 70,00,000 |
Non-salaried individuals and AOPs
Applies to sole proprietors, professionals and Associations of Persons. A surcharge of 10% of the income tax applies where taxable income exceeds Rs 1,00,00,000 — this one survived the Finance Act 2026.
| Annual taxable income | Tax |
|---|---|
| Up to Rs 6,00,000 | Nil |
| Rs 6,00,000 – Rs 12,00,000 | 15% of the amount exceeding Rs 6,00,000 |
| Rs 12,00,000 – Rs 16,00,000 | Rs 90,000 + 20% of the amount exceeding Rs 12,00,000 |
| Rs 16,00,000 – Rs 32,00,000 | Rs 1,70,000 + 30% of the amount exceeding Rs 16,00,000 |
| Rs 32,00,000 – Rs 56,00,000 | Rs 6,50,000 + 40% of the amount exceeding Rs 32,00,000 |
| Above Rs 56,00,000 | Rs 16,10,000 + 45% of the amount exceeding Rs 56,00,000 |
What changed from Tax Year 2026
The Finance Act 2026 restructured the upper salary slabs and removed the salaried surcharge. Here are the previous year’s salaried rates for comparison.
| Annual taxable income | Tax |
|---|---|
| Up to Rs 6,00,000 | Nil |
| Rs 6,00,000 – Rs 12,00,000 | 1% of the amount exceeding Rs 6,00,000 |
| Rs 12,00,000 – Rs 22,00,000 | Rs 6,000 + 11% of the amount exceeding Rs 12,00,000 |
| Rs 22,00,000 – Rs 32,00,000 | Rs 1,16,000 + 23% of the amount exceeding Rs 22,00,000 |
| Rs 32,00,000 – Rs 41,00,000 | Rs 3,46,000 + 30% of the amount exceeding Rs 32,00,000 |
| Above Rs 41,00,000 | Rs 6,16,000 + 35% of the amount exceeding Rs 41,00,000 |
Frequently asked questions
- What are Pakistan's income tax slabs for Tax Year 2027?
- For salaried individuals there are 8 slabs, starting with a nil rate on income up to Rs 6,00,000 and rising to 35%. Non-salaried individuals and AOPs face a steeper scale, starting at 15% and reaching 45%.
- Why are business rates so much higher than salary rates?
- A salaried person pays 1% on the slab just above the exemption; a business owner or AOP pays 15% on the same band. On taxable income of Rs 12,00,000 that is Rs 6,000 versus Rs 90,000 — fifteen times as much. The policy intent is that salaried income is already fully documented and withheld at source.
- Which Finance Act set these rates?
- The Finance Act 2026, gazetted 2026-06-26, which amended the First Schedule to the Income Tax Ordinance, 2001 for Tax Year 2027 onwards.