How is income tax calculated in Pakistan?

Income tax in Pakistan is calculated using slab-based rates under the Income Tax Ordinance 2001. Tax = Fixed Base Tax + (Taxable Income - Base Income Threshold) x Applicable Rate. Use our free calculator above for an instant estimate.

What is the income tax exemption limit in Pakistan 2025-26?

For Tax Year 2025-26, the income tax exemption limit for salaried individuals is PKR 600,000 per year (PKR 50,000 per month). Income below this threshold is taxed at 0%.

When is the tax return filing deadline in Pakistan?

The standard income tax return filing deadline in Pakistan is 30 September each year for the preceding tax year (July-June). For Tax Year 2025, the deadline is 30 September 2025.

Super Tax — Section 4C Calculator

⚡ ITO 2001, Section 4C 🔄 Tax Years 2024–2026 🏢 For High-Income Persons & Companies

      📌 What is Super Tax (Section 4C)? Super Tax is an additional tax levied under Section 4C of ITO 2001
      on high-income persons. From TY 2026-27 it applies to general persons only above PKR 500 million (flat 8%), while banks, E&P and fertilizer stay on the 1%–10% slab from PKR 150 million.
      Rates vary by income tier and tax year.
    

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Super Tax 4C Calculator

Compare Section 4C super tax across FBR tax years · ITO 2001

FBR 2026-27Section 4CFree

📅 Monthly Income 📆 Annual Income

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Super tax applies only to income above Rs. 150 million

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From TY 2026-27, general persons pay super tax only above Rs. 500M; banks, E&P and fertilizer keep the full 1%–10% slab.

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Tax Year 2 Compare

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Super Tax Rates by Tax Year — Section 4C

Income Tier (PKR)	TY 2022	TY 2023–2025	TY 2025–26	TY 2026–27
Up to 150M	0%	0%	0%	0%
150M – 200M	1%	1%	1%	0%
200M – 250M	2%	2%	2%	0%
250M – 300M	3%	3%	2.5%	0%
300M – 350M	4%	4%	3.5%	0%
350M – 400M	4%	6%	5.5%	0%
400M – 500M	4%	8%	7.5%	0%
Above 500M	4%	10%	10%	8%

TY 2026–27 rates shown are for general persons. Banks, Oil & Gas E&P and fertilizer manufacturers do not get the relief — they stay on the 1%–10% slab from Rs. 150M. In TY 2022, 13 specified sectors paid 10% above Rs. 300M (banking companies from TY 2023). Super tax is charged on the whole income, not just the amount above the tier.

Understanding Super Tax Under Section 4C (Pakistan)

Super Tax is an additional income tax introduced under Section 4C of the Income Tax Ordinance, 2001, to raise extra revenue from the highest earners. It applies to individuals, Associations of Persons (AOPs), and companies whose income for the year exceeds Rs. 150 million. It is charged on top of your normal income tax — not instead of it. Under the Finance Act 2026 (Tax Year 2026-27), super tax was significantly relaxed: general persons now pay nothing below Rs. 500 million and a flat 8% above it, while banks, oil & gas exploration companies and fertilizer manufacturers keep the full 1%–10% slab.

Who Has to Pay It?

From Tax Year 2026-27, general persons (ordinary companies, AOPs and individuals) pay super tax only where income exceeds Rs. 500 million, at a flat 8% — the six middle bands between Rs. 150M and Rs. 500M were removed and the top rate was cut from 10% to 8%. Banks, oil & gas E&P companies and fertilizer manufacturers are excluded from this relief and continue on the full slab (1%–10%) from Rs. 150 million. A new exemption also applies where export proceeds actually received exceed 80% of total sales. For earlier years (2023-2025 and 2025-26) the slab rates shown above applied to everyone.

How It Is Calculated

The rate is applied to your whole income for the year, not just the part above the threshold. For example, in TY 2026-27 a general company with income of Rs. 600 million pays 8% = Rs. 48 million super tax (over Rs. 500M), while the same company with Rs. 450 million pays nothing. A bank with Rs. 220 million still falls in the 200M–250M tier (2%). Marginal relief provisions soften the jump where income only just crosses the Rs. 500M line.

Frequently Asked Questions

Is super tax separate from the high-income surcharge?
Yes. The surcharge for high-earning salaried individuals is a different levy under a different provision. Super tax under Section 4C only starts at Rs. 150 million and is calculated separately.

Does it apply to salaried individuals?
Only if total income exceeds Rs. 150 million — which is rare for salaried earners. It most commonly affects large companies and high-income businesses.

Are these rates final?
Super tax rates are set by each year's Finance Act and can change. Always confirm the current rate on the FBR portal or with a tax professional before filing.