Tax Rates in Pakistan 2025 | Complete Guide to Income, Sales, Corporate & Withholding Taxes
If you’re trying to understand how much tax you need to pay in Pakistan, you’re not alone. The Federal Board of Revenue (FBR) updates tax rates every year through the Finance Act, and keeping track of them can get confusing.
This guide will help you clearly understand the income tax rates, corporate tax rates, sales tax rates, and withholding tax rates in Pakistan for 2025, whether you’re a filer or a non-filer.
1. Overview of FBR Tax Rates in Pakistan
The FBR tax rates apply to individuals, companies, and associations depending on income, business category, and transaction type.
If you are a filer, you’ll enjoy lower tax deductions compared to non-filers, who are charged higher withholding tax rates under FBR’s latest rules.
You can find official updates on tax rate news directly from the FBR and Finance Division each fiscal year.
2. Income Tax Rate in Pakistan (2025)
If you earn income in Pakistan, whether as a salaried employee, businessperson, or professional, you must pay income tax according to your income slab.
Income Tax Rates for Salaried Individuals (FY 2024–25)
| Annual Income (PKR) | Tax Rate |
|---|---|
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 5% of the amount exceeding 600,000 |
| 1,200,001 – 2,400,000 | 30,000 + 15% of the amount exceeding 1,200,000 |
| 2,400,001 – 3,600,000 | 210,000 + 20% of the amount exceeding 2,400,000 |
| 3,600,001 – 6,000,000 | 450,000 + 25% of the amount exceeding 3,600,000 |
| Above 6,000,000 | 1,050,000 + 35% of the amount exceeding 6,000,000 |
As you can see, income tax rates in Pakistan are progressive, meaning higher income results in a higher tax percentage.
3. Filer and Non-Filer Tax Rates in Pakistan
Being a filer means your name appears in the Active Taxpayer List (ATL) of FBR.
If you’re a non-filer, you’ll face significantly higher withholding tax rates on banking transactions, property sales, vehicle registration, and other financial activities.
Examples of Filer vs Non-Filer Tax Rates (FY 2025):
| Category | Filer Rate | Non-Filer Rate |
|---|---|---|
| Cash Withdrawal from Bank | 0.6% | 0.6% (same) |
| Sale/Purchase of Property | 3% | 6% |
| Vehicle Registration (1000cc–1599cc) | 2% | 4% |
| Dividend Income | 15% | 30% |
| Profit on Debt | 15% | 30% |
So, if you’re not registered yet, becoming a filer can instantly reduce your taxes by half or more.
4. Corporate Tax Rate in Pakistan
If you own or operate a company, the corporate tax rate in Pakistan depends on your business type.
| Type of Company | Tax Rate FY 2024–25 |
|---|---|
| Banking Companies | 39% |
| Public/Private Companies | 29% |
| Small Companies | 20% |
| Insurance Companies | 35% |
The government has slightly reduced corporate tax rates for small and medium enterprises to promote business growth and investment.
5. Sales Tax Rate in Pakistan
The sales tax rate in Pakistan is typically 18%, charged on the sale of most goods and services.
However, specific goods such as petroleum, steel, sugar, and imported items may have different PRA tax rates (Punjab Revenue Authority) or SRB tax rates (Sindh Revenue Board).
| Type | Tax Authority | Standard Rate |
|---|---|---|
| Goods | FBR | 18% |
| Services in Punjab | PRA Tax Rate | 16% |
| Services in Sindh | SRB | 13% |
| Services in KP/Balochistan | Provincial Tax Authorities | 15–16% |
If you’re a business owner, you must register for sales tax with FBR to avoid penalties.
6. Withholding Tax Rates in Pakistan (WHT 2025)
Withholding taxes are deducted at the source, meaning the payer collects the tax and deposits it to FBR.
The latest withholding tax rates in Pakistan (2025) apply to several categories including contracts, salaries, banking, and imports.
| Transaction Type | Filer Rate | Non-Filer Rate |
|---|---|---|
| Salary Income | As per slab | As per slab |
| Contracts | 7% | 14% |
| Supplies | 4.5% | 9% |
| Imports (Industrial) | 3.5% | 6% |
| Imports (Commercial) | 5.5% | 8% |
| Rent of Property | 10% | 20% |
| Commission | 12% | 24% |
| Prizes and Lotteries | 15% | 25% |
| Dividends | 15% | 30% |
| Bank Profits | 15% | 30% |
If you often deal with banking transactions, stock investments, or property dealings, staying aware of these withholding tax rates is essential to manage your finances better.
7. Latest Tax Rate News and FBR Updates
The FBR tax rates are revised every year under the Finance Act.
According to the latest tax rate news, there have been no major changes in the sales tax or income tax slabs for FY 2025, but withholding taxes have been adjusted for non-filers to encourage tax compliance.
Always keep an eye on FBR tax circulars or the FBR official website to stay updated with new amendments.
8. How to Check FBR Tax Rates and Calculate Your Tax
You can easily check FBR tax rates or calculate your annual tax using FBR’s official tools:
- Visit www.fbr.gov.pk
- Go to the “Tax Calculator” section
- Select your category (Individual, Company, or AOP)
- Enter your annual income or transaction amount
- View your total payable tax and withholding deductions
This process ensures you always know your correct tax rate in Pakistan based on your status and income.
Frequently Asked Questions (FAQs)
1. What is the current income tax rate in Pakistan?
The income tax rate ranges from 0% to 35%, depending on your income slab.
2. What is the corporate tax rate in Pakistan?
The corporate tax rate is 29% for regular companies and 20% for small companies.
3. What is the sales tax rate in Pakistan?
The standard sales tax rate is 18%, while provincial rates (like PRA tax rate) may differ.
4. How much withholding tax do non-filers pay?
Non-filers pay almost double the withholding tax rates compared to filers on property, vehicles, and bank transactions.
5. Where can I find the latest FBR tax rate news?
You can check the FBR official website or reliable portals like pakgovschemes.com.pk for the latest updates on tax rates in Pakistan.
Final Thoughts
Understanding Pakistan’s tax rates helps you plan your finances better and avoid unnecessary penalties.
Whether you are a salaried individual, business owner, or investor, knowing the difference between filer and non-filer tax rates and staying updated with FBR tax rates ensures that you comply with the law while saving more.