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Knowledge Center

Pakistani tax, explained simply

Guides and answers to the questions every filer has — filing deadlines, slab rates, filer status, rebates, and more.

Free calculators

Salary Tax Calculator

Calculate your exact income tax for FY 2025-26 with full slab breakdown.

Non-Filer Cost Calculator

See exactly how much extra tax you pay as a non-filer.

Withholding Tax Rates

Complete filer vs non-filer rate table for banking, property, and investments.

Tax calendar — FY 2025–26

1 July

Tax year begins

FY 2025–26 starts

30 June

Tax year ends

Income up to this date is assessed

30 Sept

Filing deadline

Individual income tax returns due

1 March

ATL published

Active Taxpayers List updated annually

Filing basics

Who has to file an income tax return in Pakistan?
Anyone with an annual income above Rs. 600,000, owners of immovable property above 500 sq. yards or a flat over 2,000 sq. ft., owners of any motor vehicle, holders of a commercial or industrial electricity connection above 500 kW, or a member of a chamber of commerce or registered professional body must file. Even below the threshold, filing is strongly recommended to appear on the ATL.
What is the income tax threshold for FY 2025-26?
The threshold is Rs. 600,000 annually for both salaried and non-salaried individuals. Income below this is exempt from income tax. However, filing with zero tax liability still places you on FBR's Active Taxpayers List, reducing withholding rates across banking, property, and vehicle transactions.
What is the difference between salaried and non-salaried tax rates?
Salaried individuals (employees receiving income from an employer) pay lower rates — starting at 5% on income above Rs. 600,000. Non-salaried individuals (freelancers, business owners, rental income earners) face higher rates starting at 15% on the same bracket. Both share the Rs. 600,000 exemption threshold.
When is the income tax filing deadline?
The deadline for individual income tax returns is 30 September each year, covering income earned in the tax year ending 30 June. Missing the deadline means paying an ATL surcharge of Rs. 1,000 (salaried) to appear as a Late Filer on the next ATL.
How is monthly tax deducted from salary?
Your employer calculates your projected annual tax and deducts one-twelfth each month. The formula is: Annual Tax ÷ 12. If your salary changes mid-year, the employer recalculates the remaining monthly deductions. You can verify the correct amount using our Salary Tax Calculator.
What is Super Tax in Pakistan?
Super Tax is an additional 10% levy on taxable income exceeding Rs. 10 million (Rs. 1 crore). It is added on top of standard slab tax and applies to high-income individuals and businesses.

Filer vs non-filer

What is the difference between a filer and non-filer?
A filer appears on FBR's Active Taxpayers List (ATL) by having filed an income tax return for the previous tax year. Non-filers are not on the ATL and pay significantly higher withholding tax rates on banking transactions, property purchases, vehicle registration, dividends, and investment income.
How do I become a filer in Pakistan?
File your income tax return via the FBR IRIS portal (iris.fbr.gov.pk) before the 30 September deadline. Once your return is processed, you appear on the ATL published the following March. WeCertify handles the entire filing process for you — from document collection to submission.
What is the Active Taxpayers List (ATL)?
The ATL is FBR's published list of individuals and companies that have filed their income tax returns. Banks, property registrars, and vehicle registration authorities check the ATL to determine whether to apply filer or non-filer withholding rates. The list is updated annually in March.
What is a Late Filer?
A Late Filer is someone who filed their return after the 30 September deadline and paid the ATL surcharge (Rs. 1,000 for salaried individuals, Rs. 20,000 for companies). Late Filers appear on the ATL and receive reduced withholding rates — though typically higher than on-time filers in some categories.
How much extra do non-filers pay on cash withdrawals?
Non-filers pay 0.6% withholding tax on cash withdrawals exceeding Rs. 50,000 per day. Filers pay 0% on the same transactions. For someone withdrawing Rs. 100,000/month, this adds up to Rs. 8,640/year in avoidable tax.
Can non-filers buy property in Pakistan?
Yes, but they pay significantly higher advance tax. Non-filers pay 10.5–12% advance tax on property purchases depending on value; filers pay 3–4%. On a Rs. 10 million property, a non-filer pays up to Rs. 500,000 more in advance tax. You can model this with our Non-Filer Cost Calculator.

Rebates & deductions

What is the teacher rebate under Pakistan income tax?
Full-time teachers at recognized educational institutions and researchers at approved research institutions qualify for a 25% reduction in income tax payable under Section 64B of the Income Tax Ordinance 2001. This is applied after calculating standard slab tax.
Do VPS / pension fund contributions reduce my tax?
Yes. Contributions to an approved Voluntary Pension System (VPS) fund of up to 20% of your taxable income earn a tax credit under Section 63. The credit equals your average tax rate multiplied by the qualifying contribution. For example, if your average rate is 10% and you contribute Rs. 200,000, you save Rs. 20,000 in tax.
Is zakat tax-deductible in Pakistan?
Zakat paid under the Zakat and Ushr Ordinance 1980 is a deductible allowance under Section 60. Donations to FBR-approved charitable organisations of up to 30% of taxable income qualify for a tax credit at your average rate under Section 61. Our Salary Tax Calculator includes both options in the rebate section.
What relief is available for disabled persons?
Persons with a certified disability qualify for a 10% reduction in income tax payable under the Second Schedule of the Income Tax Ordinance 2001. A disability certificate from a recognized medical authority is required.

NTN & registration

What is an NTN and who needs one?
A National Tax Number (NTN) is a unique identifier assigned by FBR to taxpayers. Every individual who files a tax return receives an NTN. It is required for opening a business bank account, registering a company, bidding on government contracts, and many formal financial transactions.
How do I get an NTN in Pakistan?
NTN registration is done through the FBR IRIS portal. You need your CNIC, a mobile number registered against your CNIC, email address, and bank account details. The process takes 24–48 hours once your IRIS account is created. WeCertify handles NTN registration as a one-time service for Rs. 1,999.
Do overseas Pakistanis need to file tax returns?
Overseas Pakistanis with income or assets in Pakistan (rental income, investments, property) must file Pakistani tax returns. Even without local income, filing is beneficial — it places you on the ATL and reduces withholding tax on Pakistani bank accounts and property transactions. WeCertify offers a dedicated diaspora filing flow for UAE, UK, USA, and Canada.

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