Pakistan Tax Slabs 2026: Complete Guide for Salaried, Business & Property Owners.
The Federal Budget 2025–26 has brought several important changes to tax rates and slabs in Pakistan. These changes affect salaried individuals, businesses (AOPs), companies, property owners, importers, and even digital service users.
In this blog, we explain the updated tax slabs in simple language, with examples and comparison tables to help you understand what these changes mean for your tax liability in Tax Year 2026.
Tax Slabs for Salaried Individuals (Section 149).
The tax for salaried persons is calculated based on annual income. Here is the latest tax rate breakdown for filers vs non-filers:
| Annual Salary (PKR) | Filer Rate | Non-Filer Rate |
|---|---|---|
| Up to 600,000 | 0% | 0% |
| 600,001 – 1,200,000 | 5.5% | 11% |
| 1,200,001 – 2,200,000 | See formula | See formula |
| 2,200,001 – 3,200,000 | 1.5% | 3% |
| 3,200,001 – 4,100,000 | 1% | 1% |
| Above 4,100,000 | 1% | 2% |
🧾 Note: Exact tax is calculated using progressive slabs. The percentage increases as your income rises.
Business Individuals & AOP Tax Slabs.
For sole proprietors, freelancers, and partnership firms (AOPs), here are the applicable tax slabs for Tax Year 2026:
| Annual Income (PKR) | Filer Rate | Non-Filer Rate |
|---|---|---|
| Up to 600,000 | 4% | 8% |
| 600,001 – 1,200,000 | 1.5% | 3% |
| 1,200,001 – 1,600,000 | 15% | 30% |
| Above 1,600,000 | Progressive | Progressive |
💡 Tip: Filing tax returns on time significantly reduces your tax burden. Non-filers pay double the rates in most cases.
Corporate Tax Rates.
| Company Type | Tax Rate |
|---|---|
| Small Companies | 20% |
| Banking Companies | 39% |
| All Other Companies | 29% |
| Alternative Corporate Tax (ACT) | As per ACT rules |
| Minimum Turnover Tax | As applicable |
Rent from Property – For Companies.
If a company earns income from rental property, the tax rate for non-filers is as high as 30% on gross rental income.
5. 🏘️ Capital Gain on Sale of Property (Section 37)
For property acquired before July 1, 2024, capital gains are taxed based on holding period.
| Holding Period | Capital Gain Tax (Filer) | Capital Gain Tax (Non-Filer) |
|---|---|---|
| Up to 1 year | 15% | 30% |
| 1–2 years | 12.5% | 25% |
| 2–3 years | 10% | 15% |
| 3–4 years | 7.5% | — |
| 4–5 years | 5% | — |
| 5–6 years | 2.5% | — |
| Above 6 years | 0% | — |
📌 The longer you hold a property before selling, the lower your tax.
6. Advance Tax on Motor Vehicles
| Engine Capacity (cc) | Filer | Non-Filer |
|---|---|---|
| Up to 850cc | 1.5% | 12% |
| 1001–1300cc | 4.5% | 0.7% |
| 1601–1800cc | 9% | — |
| 2001–2500cc | 21% | — |
| 2501–3000cc | 27% | — |
| Above 3000cc | 36% | — |
7. Digital Payments & E-Commerce Taxes
If you run an e-commerce platform or make/receive online payments, you may be liable for:
0.25% tax on IT export proceeds (if PSEB registered)
Up to 15% tax on foreign digital transactions
Tax on debit/credit card transactions abroad
8. Advance Tax on Property Sale (Section 236C & 236K)
| Sale Value | Filer Rate | Non-Filer Rate |
|---|---|---|
| Up to Rs. 50 million | 4.5% | 7.5% |
| Rs. 50M – Rs. 100M | 5% | 8.5% |
| Above Rs. 100 million | 5.5% | 9.5% |
Surcharges & Super Tax
If your taxable income exceeds Rs. 10 million, you may also be charged a surcharge or super tax on top of regular tax, depending on your income category and business type.
