Reference · 2026–27
Our Tax Card sets out Pakistan’s income tax and withholding rates for 2026–27 in one place — the schedules our own team works from. The headline tables are reproduced below; the full card is yours to download.
ATG Tax Card 2026–27
PDF · 13 pages · 644 KB · free to share
Why we publish it
Most people meet these numbers twice a year and are expected to have remembered them in between.
A finance manager working out a withholding rate on a supplier payment, an owner deciding whether an SME election helps or hurts, someone checking whether a raise pushes them into a new band — all of it should take a minute, and it does when the rates are in one place.
So we publish the card we use internally, unchanged. It carries the salaried, AOP, pensioner and SME schedules, minimum tax, capital gains, the withholding rates across goods, services and contracts, imports, non-resident payments, electricity, advance tax and property. There is nothing gated about it — no form to fill, no email required.
The headline schedules
Reproduced exactly as printed on the card. Every other schedule is in the PDF.
| Taxable income | Tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 – Rs 1,200,000 | 1% of the amount exceeding Rs 600,000 |
| Rs 1,200,001 – Rs 2,200,000 | Rs 6,000 + 11% of the amount exceeding Rs 1.2M |
| Rs 2,200,001 – Rs 3,200,000 | Rs 116,000 + 20% of the amount exceeding Rs 2.2M |
| Rs 3,200,001 – Rs 4,100,000 | Rs 316,000 + 25% of the amount exceeding Rs 3.2M |
| Rs 4,100,001 – Rs 5,600,000 | Rs 541,000 + 29% of the amount exceeding Rs 4.1M |
| Rs 5,600,001 – Rs 7,000,000 | Rs 976,000 + 32% of the amount exceeding Rs 5.6M |
| Above Rs 7,000,000 | Rs 1,424,000 + 35% of the amount exceeding Rs 7M |
| Taxable income | Tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 – Rs 1,200,000 | 15% of the amount exceeding Rs 600,000 |
| Rs 1,200,001 – Rs 1,600,000 | Rs 90,000 + 20% of the amount exceeding Rs 1.2M |
| Rs 1,600,001 – Rs 3,200,000 | Rs 170,000 + 30% of the amount exceeding Rs 1.6M |
| Rs 3,200,001 – Rs 5,600,000 | Rs 650,000 + 40% of the amount exceeding Rs 3.2M |
| Above Rs 5,600,000 | Rs 1,610,000 + 45% of the amount exceeding Rs 5.6M |
| Pension received | Tax |
|---|---|
| Up to Rs 10,000,000 | 0% |
| Above Rs 10,000,000 | 5% of the amount exceeding Rs 10M |
An SME may elect the normal tax regime or the final tax regime. The election governs how the whole year is assessed, so it is worth modelling both before choosing.
| Turnover | Tax |
|---|---|
| Normal regime — turnover up to Rs 100M | 7.5% of taxable income |
| Normal regime — turnover Rs 100M – Rs 250M | 15% of taxable income |
| Final regime — turnover up to Rs 100M | 0.25% of gross turnover |
| Final regime — turnover Rs 100M – Rs 250M | 0.5% of gross turnover |
Also inside
01
A 10% surcharge on the tax imposed where an individual's or AOP's taxable income other than salary exceeds Rs 10 million.
02
The general 1.25% rate, plus every reduced rate: 0.75%, 0.5% and the 0.25% band covering listed distributors, dealers and wholesalers in categories from pharmaceutical and fertiliser to FMCG retail and flour mills.
03
Disposal of securities under section 37A by acquisition date, and disposal of immovable property split by holding period across open plots, constructed property and flats.
04
Sections 153(1)(a), (b) and (c) — supplies, services and contracts, each with separate rates for persons on and off the Active Taxpayers List.
05
Import stage rates including pharmaceutical finished goods and electric-vehicle CKD kits, plus section 152 payments to non-residents covering royalties, technical and off-shore digital service fees.
06
Electricity consumption under section 235, advance tax under section 147(5C) by city, bonus shares under 236Z and property sold by auction under 236A.
How to read it
01
Across withholding on supplies, services, contracts, imports and property, the rate for a person not on the Active Taxpayers List is routinely double the rate for someone on it. Being filed and active is not a formality — on a year's transactions it is frequently the single largest avoidable cost in this entire document.
02
Each band applies only to the income above its own threshold, which is why the card states a fixed amount plus a percentage rather than one rate. A rise into the next band never reduces take-home pay — a common misreading that leads people to turn down increases they should accept.
03
An SME choosing between the normal and final regimes is choosing between paying on taxable income and paying on gross turnover. For a low-margin business the turnover-based option can cost considerably more, and for a high-margin one considerably less. Model both before electing.
04
The 10% surcharge under section 4AB applies to the tax imposed, not to income, once non-salary taxable income passes Rs 10 million. It is easy to miss when estimating a liability from the slab table alone.
Print it, share it with your finance team, send it to a client. No attribution required and nothing to sign up for.
A reference, not advice. The card summarises rates applicable for 2026–27. Rates change, exemptions and reduced rates apply in specific circumstances, and the correct treatment of any transaction depends on its facts. Confirm the position before acting on it — that is what a conversation is for. Rates are published by the Federal Board of Revenue; see our regulatory sources.
Applying them to a real set of books is where it gets interesting. We reply within one working day.
