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Complete Income Tax Slabs in Pakistan for Tax Year 2026: Full Guide for Salaried and Business Individuals

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Income Tax Guide 2026

Complete Income Tax Slabs in Pakistan for Tax Year 2026: Full Guide for Salaried and Business Individuals

Comprehensive breakdown of all tax brackets with calculation examples

TA
Tax Advisory Team
Last Updated: April 14, 2026 | Based on Finance Act 2025

Pakistan’s tax landscape for Tax Year 2026 brings significant changes that affect both salaried individuals and business owners. Understanding the updated tax slabs is crucial for effective tax planning 279,284.

Income Tax Slabs for Salaried Individuals

Annual Taxable Income (PKR)Tax RateFixed AmountExample Tax
Up to 600,0000%NilNo tax
600,001 โ€“ 1,200,0001%NilRs 6,000 on 1.2M
1,200,001 โ€“ 2,200,00011%Rs 6,000Rs 116,000 on 2.2M
2,200,001 โ€“ 3,200,00015%Rs 116,000Rs 266,000 on 3.2M
3,200,001 โ€“ 4,100,00020%Rs 266,000Rs 446,000 on 4.1M
4,100,001 โ€“ 5,000,00025%Rs 446,000Rs 671,000 on 5M
Above 5,000,00035%Rs 671,000Progressive increase
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Significant Relief for Middle-Income Earners

The government has provided substantial relief for salaried class, particularly those earning up to PKR 1.5 million annually. For instance, an individual earning PKR 1 million will now pay significantly lower tax compared to previous years 287.

Tax Slabs for Non-Salaried and AOPs

Annual Income (PKR)Tax RateRebate for Filers
Up to 400,0000%100% rebate
400,001 โ€“ 600,0005%50% rebate
600,001 โ€“ 1,000,00010%25% rebate
1,000,001 โ€“ 3,000,00015%No rebate
3,000,001 โ€“ 5,000,00020%No rebate
Above 5,000,00025%No rebate

Additional Surcharge for High Earners

Non-salaried individuals and AOPs with taxable income exceeding PKR 10 million per year must pay an additional surcharge equal to 10% of their income tax liability 280.

Key Filing Dates for Tax Year 2026

  • ๐Ÿ“… September 30, 2026: Individual and AOP tax return filing deadline
  • ๐Ÿ“… December 31, 2026: Company tax return filing deadline
  • โš ๏ธ June 30, 2027: Export services tax regime expiration (if not extended)

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