Last updated 14 November 2026 (Asia/Karachi). Figures in this guide were checked against the cited official documents on that date.

Finance Act 2026 received the President's assent on 26 June 2026 and, unless a provision says otherwise, came into force on 1 July 2026. Tax Year 2027 therefore runs from 1 July 2026 to 30 June 2027. This guide lists the individual-income-tax changes that TaxToolSet has implemented, or that a salaried person, property buyer or seller, or late filer is most likely to meet, and points to the matching calculator.

This is general information, not tax advice and not an FBR or PTA determination. TaxToolSet is independent of the Federal Board of Revenue and of the Pakistan Telecommunication Authority. Tax facts on this page are reviewed by a Chartered Accountant. The original statute prevails if a rate card, circular or this guide differs from the law.

Official texts used for this guide:

The rate card itself says the Income Tax Ordinance, 2001, as amended, prevails if the card and the law differ.

1. New salaried income-tax table

Circular No. 02 of 2026-27, item 7, records that Finance Act 2026 substituted the table in First Schedule, Part I, Division I, clause (2) to reduce rates in various salary slabs. The circular's table, and TaxToolSet's published salary rule set, are:

Taxable income Tax
Does not exceed PKR 600,000 0%
Exceeds PKR 600,000 but does not exceed PKR 1,200,000 1% of the amount exceeding PKR 600,000
Exceeds PKR 1,200,000 but does not exceed PKR 2,200,000 PKR 6,000 + 11% of the amount exceeding PKR 1,200,000
Exceeds PKR 2,200,000 but does not exceed PKR 3,200,000 PKR 116,000 + 20% of the amount exceeding PKR 2,200,000
Exceeds PKR 3,200,000 but does not exceed PKR 4,100,000 PKR 316,000 + 25% of the amount exceeding PKR 3,200,000
Exceeds PKR 4,100,000 but does not exceed PKR 5,600,000 PKR 541,000 + 29% of the amount exceeding PKR 4,100,000
Exceeds PKR 5,600,000 but does not exceed PKR 7,000,000 PKR 976,000 + 32% of the amount exceeding PKR 5,600,000
Exceeds PKR 7,000,000 PKR 1,424,000 + 35% of the amount exceeding PKR 7,000,000

In the TaxToolSet rule set, this table applies where income chargeable under the head salary exceeds 75% of taxable income. If that test is not met, the general/non-salaried individual table in clause (1) of the same Division can apply instead. That general table is rendered from the published rule set on the tax slabs page and in the individual income tax calculator. This guide does not retype the clause (1) bands from memory.

Use the Pakistan Salary Tax Calculator for the salaried table, and read the Tax Year 2027 salary tax guide.

2. Salaried surcharge withdrawn; 10% surcharge continues for others

Circular item 8 explains the section 4AB change. Before the Act, a 10% surcharge applied to individuals and associations of persons on income tax where taxable income exceeded PKR 10 million, and a 9% surcharge applied where the person's income was chargeable under the head salary and that threshold was crossed. Finance Act 2026 withdrew the 9% surcharge for a salaried individual. The 10% surcharge continues for other individuals and associations of persons.

TaxToolSet's salary rule set therefore stores a salaried surcharge rate of 0. Do not add the PKR 10 million surcharge to a case that is correctly on the salaried table.

3. Section 7E tax on deemed income abolished

Tax on deemed income under section 7E has been abolished, and that is now the settled position. Finance Act 2026 omitted section 7E. FBR Circular No. 02 of 2026-27 (8 September 2026), item 9, records that the tax has been abolished by that omission, that Division VIIIC (the deemed-income rate) was omitted as a consequence, and that references to section 7E in section 8 were also omitted.

The Federal Constitutional Court made an order on 7 May 2026 concerning section 7E. FBR Letter No. 6(67)/Rev Bud/2026/106836-R, dated 23 September 2026, addressed to all Chief Commissioners, directs that:

  1. requests to revise returns in light of that Federal Constitutional Court order on section 7E should not be rejected;
  2. the direction is limited to the section 7E issue only; and
  3. where a revision creates a refund, the refund application is to be processed expeditiously.

A taxpayer who paid section 7E tax and reflected it in a return may apply to revise that return for the 7E issue (revision of a return under section 114(6) through IRIS) and then file the refund claim under section 170. The letter is an internal FBR direction, not a published circular, and it covers section 7E only. This guide does not reconstruct the old 7E formula.

4. Property withholding: sections 236C and 236K

Finance Act 2026 substituted Division X and Division XVIII of Part IV of the First Schedule:

  • Section 236C (sale or transfer): 2.75% of the gross amount of the consideration received (ATL base rate in the Act).
  • Section 236K (purchase): 1.25% of the fair market value of the immovable property (ATL base rate in the Act).

Non-ATL rates remain higher under the Tenth Schedule as shown on the FBR Tax Year 2027 withholding rate card. From 1 July 2026, TaxToolSet implements those non-ATL bands as 10.50% / 14.50% / 18.50% of fair market value for 236K at or below PKR 50 million, above 50 million up to 100 million, and above 100 million, and 11.50% of gross consideration for 236C. Those figures are in the published property rule set and the property 236K/236C guide.

Circular item 28 also records that Tenth Schedule rule 1A late-filer (ATL but filed after the due date) higher rates on 236C and 236K have been abolished. TaxToolSet no longer uses a separate late-filer property category from 1 July 2026.

Calculate on the property tax calculator and the filer vs non-filer calculator.

5. Section 182A ATL surcharge and the six-month undertaking

Circular item 27 records that, in the proviso to section 182A(1)(a), the surcharge amounts payable by persons not on the Active Taxpayers' List were substantially enhanced, and that a new sub-section (3) lets an individual avoid those surcharge conditions by furnishing an undertaking to the Commissioner not to purchase, acquire or otherwise obtain ownership or beneficial interest in any property for six months from the date of the undertaking.

TaxToolSet's late-filing and ATL tool implements the Finance Act 2026 surcharge figures stored in its rule set: PKR 25,000 for an individual, PKR 50,000 for an AOP and PKR 100,000 for a company, with the section 182A(3) undertaking route treated as zero implemented surcharge where that option is used. Those figures are also set out in the how to become a filer guide. Use the late filing and ATL calculator.

Section 182 late-return penalties were also amended (circular item 26). This guide does not restate every new penalty serial. Use the figure shown by the TaxToolSet late-filing tool for your facts, and confirm any other penalty with the Ordinance or a Chartered Accountant.

6. Other individual-relevant changes

  • Faceless proceedings. Circular item 1 describes the new National faceless centre and related sections. This is procedure, not a rate change.
  • Electronic filing of returns and financial statements (circular item 18 / section 114(2A)). Check the current IRIS filing process that applies to you.
  • Section 231B(6)(c) was omitted, so the date of first registration for government vehicles is aligned with Excise and Taxation Department registration (circular item 28). Rates themselves are in the vehicle 231B guide and the FBR rate card.
  • DIRBS instalments. Finance Act 2026 added Ninth Schedule, Liability, Procedure and Conditions, sub-clause (vi): an individual paying tax on an imported mobile phone through PTA's Device Identification, Registration and Blocking System may be allowed to pay in instalments as prescribed, with all instalments paid before the end of the financial year of import. See the PTA mobile tax guide. The Act provides for instalments as prescribed; the prescribed scheme and due dates are not yet confirmed, so check the DIRBS portal at payment.
  • Super tax, capital-gains holding rules, and other First Schedule amendments are outside the calculators cited above. Check those rates in Finance Act 2026 and Circular No. 02 before relying on a third-party summary.

What this guide does not do

It is not a complete catalogue of every Finance Act 2026 clause. Company, AOP special regimes, e-commerce tax, shipping, and NCCPL capital-gains mechanics are mentioned only where they help an individual reader.

Sources