Plain-language guides to help you understand and file your income tax in Pakistan.
Where to start
If you're new to Pakistani income tax, don't try to read everything at once. Most salaried people only need three things: know roughly how much tax they pay, file a return every year, and stay on the Active Taxpayers List. Our guides follow that order.
Start with the tax slabs. They explain how the rates work and why your effective rate is lower than the headline percentage. Then run your own salary through the calculator so the numbers mean something to you. After that, read the filing guide. It takes you through the IRIS portal one screen at a time. Finally, the filer vs non-filer guide shows why filing is worth the effort even when your employer already deducts tax.
Common questions we hear
"My company already cuts tax. Why do I need to file?"
Because deducting tax and filing a return are two separate things. Your employer pays your tax to FBR, but you still have to declare your income and assets. If you don't, you won't appear on the Active Taxpayers List, and you'll pay higher withholding tax on your bank profit, when you buy a car or property, and in several other places. Filing also lets you claim back any extra tax deducted during the year.
"Is FBR going to come after me if I file late?"
Late filing carries a penalty, and you won't be on the ATL until you file and pay the late-filing surcharge. It's far better to file late than not at all. Most people who file a little late just pay the surcharge and move on.
"What's a tax year?"
Pakistan's tax year runs from 1 July to 30 June. It's named after the year in which it ends. So income from July 2026 to June 2027 is Tax Year 2027, and the budget that sets its rates is called Budget 2026-27. The return for it is due by 30 September 2027.
"Do I need a tax consultant?"
For a plain salaried return, most people manage on their own after doing it once. If you have rental income, foreign income, a business, capital gains from shares or property, or you've received an FBR notice, a qualified consultant is money well spent.
Key dates to remember
| Date | What happens |
|---|---|
| Early June | Federal budget announced for the next fiscal year |
| Late June | Finance Act passed; new rates confirmed |
| 1 July | New tax year starts and new slabs apply to salaries |
| Around August | Return forms for the year just ended open on IRIS |
| 30 September | Normal deadline for individuals to file returns |
| 1 March | Active Taxpayers List updated with new filers |
FBR sometimes extends the 30 September deadline, but don't count on it. Filing in the first two weeks of September avoids the last-minute rush that slows down IRIS every year.
Keeping records
Make a simple folder, paper or on your phone, for each tax year. Put in your salary certificate, bank profit certificates, any withholding tax certificates, property and vehicle documents, and a copy of your filed return. The law requires you to keep records for six years, and when you file the next year you'll be glad the previous year's wealth statement is right there.
A note on accuracy
We write these guides to be clear and practical, and we update them after each budget. But tax law has exceptions that a general article can't cover. If something here doesn't match your situation, check with FBR or a tax adviser before acting on it. Spotted a mistake? Let us know and we'll fix it.
Glossary of terms you'll see
- NTN: National Tax Number. For individuals it's now usually your CNIC number.
- IRIS: FBR's online portal where you register, file returns and track notices.
- ATL: Active Taxpayers List, FBR's list of people who filed their latest return.
- Withholding tax: tax deducted at source by banks, employers, utility companies and others.
- Wealth statement: the form listing your assets and liabilities, filed with the return.
- Finance Act: the law passed each June that sets the new year's rates.
How we choose topics
New guides come from the questions readers send us and from what changes in each budget. When a rule changes in a way that affects many people, such as the salary slabs or filer rules, we write about it first. Got a topic you'd like covered? Send it our way.
Calculators that go with these guides
Reading about tax is easier with your own numbers in front of you. Alongside the guides, try the full list of calculators. People reading the filer guide often go on to the property purchase and cash withdrawal tools to see exactly what filing would save them.