IN · AsiaPK · Asia
India vs Pakistan: tax rates compared
Between the two, Pakistan's income tax rate (35%) tops India's (30%) by 5pp. The 200-country average is 28%: both sit above it.
Verified data covers five of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | IN | PK | Difference |
|---|---|---|---|
| Income Tax | 30% | 35% | PK +5 pplargest gap |
| Corporate Tax | 30% | 29% | IN +1 pp |
| VAT | 18% | 18% | match |
| Capital Gains Tax | 12.5% | 15% | PK +2.5 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| India | 30% | Source: PWC Worldwide Tax Summaries — India (Individual, Taxes on personal income) · as of 2026-05-12 |
| Pakistan | 35% | Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Taxes on personal income) · as of 2026-01-19 |
| Difference | −5 pp | Pakistan higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| India | 30% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Pakistan | 29% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | +1 pp | India higher |
Between the two, India's corporate tax rate (30%) tops Pakistan's (29%) by 1pp. The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| India | 18% | Source: PWC Worldwide Tax Summaries — India (Corporate, Other taxes) · as of 2026-05-11 |
| Pakistan | 18% | Source: PWC Worldwide Tax Summaries — Pakistan (Corporate, Other taxes) · as of 2026-01-19 |
| Difference | 0 pp | displayed rates match |
There's no gap here — India and Pakistan both post a VAT rate of 18%. The 181-country average is 15%: both sit above it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| India | 12.5% | Source: PWC Worldwide Tax Summaries — India (Individual, Other taxes) · as of 2024-07-23 |
| Pakistan | 15% | Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Income determination) · as of 2026-01-19 |
| Difference | −2.5 pp | Pakistan higher |
Between the two, Pakistan's capital gains tax rate (15%) tops India's (12.5%) by 2.5pp. The 175-country average is 10.3%: both sit above it. India's figure is dated 2024-07-23 and Pakistan's 2026-01-19, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| India | 0% | Source: PWC Worldwide Tax Summaries — India (Individual, Other taxes) · as of 2026-05-12 |
| Pakistan | 0% | Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Other taxes) · as of 2026-01-19 |
| Difference | 0 pp | displayed rates match |
There's no gap here — India and Pakistan both post a wealth tax rate of 0%. The 193-country average is 0.1%: both sit below it.
Not covered for both countries yet: Crypto Tax.