FBR Tax Slabs & Rates Reference
Every rate this site uses, laid out in full. Current tables come from the Finance Act 2026, which took effect on 1 July 2026. Last year's tables are kept below for anyone filing or reconciling a prior return.
Each band shows a fixed amount plus a rate. The fixed amount is the total tax on all income up to the start of that band; the rate applies only to income above it. So tax is never a flat percentage of everything you earn.
Surcharge under section 4AB
The surcharge is charged on the tax, not on income. The Finance Act 2026 removed it for salaried individuals from 1 July 2026; the charge on non-salaried individuals and AOPs was not repealed. If you are close to the Rs 10 million threshold, confirm your position with FBR before filing.
IT and IT-enabled services exports — section 154A
Export proceeds from software and IT services are taxed as a final tax at the point the money is credited, at rates that depend on PSEB registration and Active Taxpayer List status.
| Position | Rate on gross proceeds |
|---|
Sales tax rates
Goods are taxed federally by FBR; services are a provincial subject, with each authority setting its own standard rate.
| Scope | Authority | Standard rate |
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Other figures
What changed on 1 July 2026
- The salaried table gained bands: the old 23%/30%/35% steps became 20%, 25%, 29%, 32% and 35%.
- The 9% surcharge on salaried income above Rs 10 million was abolished.
- The Rs 600,000 exemption threshold was left unchanged.
- Business individual and AOP rates were left unchanged.
- The national minimum wage rose 10% to Rs 40,700 a month.