Pakistan Income Tax Slabs 2025-26
Last reviewed by Zohaib Nasir, registered tax practitioner
Finance Act 2025 brought meaningful relief for middle-income salaried taxpayers. Here are the complete slabs, with worked examples and surcharge details.
Salaried Tax Slabs FY 2025-26
Pakistan's salaried tax structure has six brackets for FY 2025-26, starting from tax-free at PKR 600,000 and rising to a top rate of 35%:
| Income range (PKR) | Tax rate | Tax formula |
|---|---|---|
| Up to ₨600,000 | 0.00% | 0.00% of excess |
| Above ₨600,000 to ₨1,200,000 | 1.00% | 1.00% of excess |
| Above ₨1,200,000 to ₨2,200,000 | 11.00% | ₨6,000 + 11.00% of excess |
| Above ₨2,200,000 to ₨3,200,000 | 23.00% | ₨116,000 + 23.00% of excess |
| Above ₨3,200,000 to ₨4,100,000 | 30.00% | ₨346,000 + 30.00% of excess |
| Above ₨4,100,000 & above | 35.00% | ₨616,000 + 35.00% of excess |
Surcharge for high-income earners
Salaried individuals earning more than PKR 10 million annually pay a 9% surcharge on their calculated tax (reduced from 10% in FY 2024-25). For example, if your base tax is PKR 1,500,000, you pay an additional PKR 135,000 as surcharge.
AOP / Non-Salaried Slabs FY 2025-26
AOP (Association of Persons), partnerships, sole proprietors, and individuals whose primary income is not salary face significantly higher rates:
| Income range (PKR) | Tax rate | Tax formula |
|---|---|---|
| Up to ₨600,000 | 0.00% | 0.00% of excess |
| Above ₨600,000 to ₨1,200,000 | 15.00% | 15.00% of excess |
| Above ₨1,200,000 to ₨1,600,000 | 20.00% | ₨90,000 + 20.00% of excess |
| Above ₨1,600,000 to ₨3,200,000 | 30.00% | ₨170,000 + 30.00% of excess |
| Above ₨3,200,000 to ₨5,600,000 | 40.00% | ₨650,000 + 40.00% of excess |
| Above ₨5,600,000 & above | 45.00% | ₨1,610,000 + 45.00% of excess |
Freelancer Tax (Section 154A)
Freelancers earning from IT/IT-enabled service exports pay a final tax under Section 154A. PSEB-registered freelancers pay 0.25% on export income; unregistered freelancers pay 1%. Registration via TechDestination costs PKR 1,000 and saves you 75% on tax — at PKR 1 Cr annual export income, that's PKR 75,000 saved.
Try the calculator
You could save up to PKR 8,640 legally.
Most salaried Pakistanis miss legitimate rebates: pension fund (Sec 63), Zakat (Sec 60), medical allowance restructuring. A 15-minute consultation typically uncovers PKR 15,000–50,000 in savings.