Central & South Asia
Pakistan tax rates 2026
Residents are taxed on worldwide income. Salary tax is steeply progressive, with a surcharge on high incomes, and a federal sales tax of 18% applies to goods.
Worldwide (residence-based)
Last verified
The taxes
| Personal income (top) | 35%The system is progressive. The top salary rate is 35% above PKR 4.1m, plus a 9% surcharge on tax for taxable income over PKR 10m. |
|---|---|
| Corporate income | 29% |
| Capital gains | Gains on securities are taxed at up to 15%. Gains on immovable property are taxed according to how long it was held. |
| VAT / Sales Tax (GST) | 18% |
| Dividends (WHT) | 15% |
| Interest (WHT) | 15% |
| Royalties (WHT) | 15% |
| Social security (employee) | 1% |
| Social security (employer) | 5% |
| Wealth tax | None |
| Inheritance / estate | None |
| Property tax | A provincial property tax applies, along with capital value and deemed-rental levies. |
| Other | Employers contribute to EOBI and provincial social security, at about 6%. A super tax of up to 10% applies to high-income companies, while small companies pay a 20% corporate income tax. |
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- Yes
- CRS
- Participating
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.