PK · Asia · PKR
Pakistan
Tax rates
Income Tax
35%
Top rate, progressive scale
Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Taxes on personal income) · as of 2026-01-19Corporate Tax
29%
Statutory rate
Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01VAT
18%
Standard rate
Source: PWC Worldwide Tax Summaries — Pakistan (Corporate, Other taxes) · as of 2026-01-19Capital Gains Tax
15%
Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Income determination) · as of 2026-01-19Wealth Tax
0%
Not levied
No verified data yet for: Crypto Tax.
Estimate your income tax
Enter a gross annual salary to estimate 2026 national income tax for Pakistan using verified brackets — total tax, effective and marginal rate, net income, and the per-band breakdown. National income tax only; social contributions and sub-national taxes are excluded unless the notes say otherwise. The full calculator covers every country with verified rates.
The calculator needs JavaScript — every figure stays readable without it. The full bracket schedule is under Brackets & notes below, and the calculator page lists every country's schedule.
Brackets, notes & in practice
Income Tax
| Threshold | Rate |
|---|---|
| PKR 0 | 0% |
| PKR 600,000 | 1% |
| PKR 1,200,000 | 11% |
| PKR 2,200,000 | 23% |
| PKR 3,200,000 | 30% |
| PKR 4,100,000 | 35% |
This is the salaried-person schedule, applicable where salary exceeds 75% of taxable income; salaried individuals with taxable income above PKR 10 million also owe a surcharge equal to 9% of income tax, named here rather than summed into the rate. Non-salaried individuals and associations of persons instead face a separate schedule reaching 45%, with a 10% surcharge above PKR 10 million.
Pakistan taxes salaried individuals under a progressive schedule topping at 35% on taxable income above PKR 4.1 million, with a surcharge equal to 9% of tax due where taxable income exceeds PKR 10 million. Non-salaried individuals and associations of persons face a steeper schedule reaching 45% (10% surcharge above PKR 10 million).
In practice
- Residency
An individual is Pakistan tax resident for a tax year (1 July through 30 June) if present in Pakistan for 183 days or more in aggregate, is a Pakistani government employee posted abroad, or is a Pakistani citizen not present in any other country for more than 182 days and not a resident taxpayer of another country.
Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Residence) · as of 2026-01-19- Filing
The tax year runs 1 July to 30 June. All individuals, including salaried persons, must file their income tax return and wealth statement for the year by 30 September, with tax withheld from salaries by the employer at the average estimated rate and advance tax paid in four instalments by non-salaried individuals whose taxable income exceeds PKR 1 million.
Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Tax administration) · as of 2026-01-19- Non-residents
A non-resident individual is taxed only on Pakistan-source income, including salary to the extent it relates to employment exercised in Pakistan regardless of where it is paid, under the same rate schedules that apply to residents.
Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Taxes on personal income) · as of 2026-01-19- Deductions
Reimbursed medical treatment and hospitalization expenses are exempt, as is a medical allowance up to 10% of basic salary where reimbursement isn't offered. Personal tax credits are available for Zakat payments, approved charitable donations (up to 30% of taxable income), and profit on debt paid on loans for constructing or acquiring a personal house or flat within specified size limits.
Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Deductions) · as of 2026-01-19- Special regimes
Beyond the deductions and credits already available, Pakistan provides no other significant tax incentives for individuals.
Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Other tax credits and incentives) · as of 2026-01-19
VAT
Pakistan's VAT, locally termed sales tax, is levied on goods at 18%. Sales tax on services is levied separately by the Provinces, Islamabad Capital Territory, and Azad Jammu and Kashmir, within their jurisdictions, at rates ranging from 15% to 16%.
In practice
- Filing
Federal sales tax registration on goods is required for all importers, all wholesalers and distributors, manufacturers other than cottage industries (annual turnover not exceeding PKR 10 million, or annual utility bills not exceeding PKR 800,000), and Tier-1 retailers meeting stated criteria such as chain-store or mall operation. Persons required under provincial or federal law to register for related levies on services, including hotels, caterers, and courier services, register separately.
Source: Federal Board of Revenue (Pakistan) — Register for Sales Tax · as of 2026-07-27
Capital Gains Tax
For listed securities acquired on or after 1 July 2024, individuals on Pakistan's Active Taxpayers List pay a flat 15% tax on disposal gains regardless of holding period; those not on the list instead pay tax at the general personal income tax rates, subject to a 15% minimum. Securities acquired before that date remain subject to the prior holding-period-graduated rates, which fall as low as 0% for long-held positions.
In practice
- Exemptions
Listed securities acquired before 1 July 2013 are taxed at 0% on disposal regardless of holding period. Securities acquired from 1 July 2013 through 30 June 2022 are instead taxed at a flat 12.5% irrespective of holding period, while securities acquired from 1 July 2022 to 30 June 2024 follow a graduated scale that reaches 0% for holding periods beyond six years.
Source: PWC Worldwide Tax Summaries — Pakistan (Individual, Income determination) · as of 2026-01-19
Wealth Tax
No general net wealth tax is levied in Pakistan. PWC's consolidated chart shows '1' for Pakistan, which refers to the 'Tax on value of capital assets': a resident individual owning immovable property is taxed on deemed income of 5% of the property's fair market value at a 20% rate (net effective 1% of FMV) — legally an income tax on notional rental-equivalent income, applying only to immovable property (with exclusions including one property per resident, business premises, agricultural land, and property under PKR 25 million), not to total net worth. Per this site's modeling rules, deemed-income mechanisms and single-asset-class levies are not wealth taxes, so this is modeled as no wealth tax.