What super tax is
Super tax was introduced in 2015 as a temporary measure and has stayed in one form or another ever since. It's charged on top of normal income tax, on persons with very high income. "Persons" here includes companies, AOPs and individuals, though in practice it's mostly large companies that pay it.
Changes in the Finance Act 2026
For Tax Year 2027, the old graduated table for most taxpayers was replaced. Instead of rates from 1% to 10% starting at Rs 150 million, most persons now pay nothing until income crosses Rs 500 million, and then 8%. Banks, persons covered by Part I of the Fifth Schedule and fertiliser sellers stay at 10% above Rs 150 million.
| Taxpayer | Threshold | Rate |
|---|---|---|
| Most persons | Income above Rs 500 million | 8% |
| Banks, Fifth Schedule Part I, fertiliser | Income above Rs 150 million | 10% |
The whole income is taxed
This is the part that catches people out. Super tax isn't charged only on income above the threshold. Once you cross it, the rate applies to the entire income. A company with Rs 499 million pays no super tax. One with Rs 501 million pays 8% of Rs 501 million, about Rs 40,080,000. That's a steep cliff, and it's worth planning around if you're close to the line.
Examples
| Income | Most persons | Banks |
|---|---|---|
| Rs 100,000,000 | Rs 0 | Rs 0 |
| Rs 200,000,000 | Rs 0 | Rs 20,000,000 |
| Rs 450,000,000 | Rs 0 | Rs 45,000,000 |
| Rs 600,000,000 | Rs 48,000,000 | Rs 60,000,000 |
| Rs 2,000,000,000 | Rs 160,000,000 | Rs 200,000,000 |
Income for super tax
Super tax is calculated on "income" as defined for Section 4C. It's broadly taxable income plus certain items like exempt income, income under final tax regimes and brought-forward losses that were set off. The exact computation can be detailed, so treat this calculator as a first estimate and have your adviser compute the final figure.
Exporters
Persons whose export proceeds are more than 80% of total turnover for the year are exempt from super tax. That's a significant relief for export-oriented manufacturers and IT companies.
Paying it
Super tax is paid with your return and is also included in quarterly advance tax. Companies with a June year end pay it alongside their corporate tax by the return deadline.
How the old system compared
Before Tax Year 2027, most taxpayers faced super tax from Rs 150 million upwards, starting at 1% and climbing in steps to 10% above Rs 500 million. Medium-sized companies earning Rs 200 to 400 million paid a few percent of their income in super tax. Under the new table, those companies pay none. The largest companies outside banking pay 8% instead of 10%. Banks see no change in the super tax rate itself, though their corporate rate fell by a point.
Planning near the threshold
Because the rate applies to the whole income, a company sitting just above Rs 500 million can face several crore in extra tax compared with one just below it. Legitimate planning, such as timing large deductible expenses, investing in eligible assets, or reviewing how group companies are structured, can matter. Aggressive schemes to split income artificially are a different story and can be challenged by FBR. Any planning should be done with a qualified adviser well before the year ends.
Related calculators
- Corporate tax calculator, to add super tax to your normal company tax.
- Minimum turnover tax calculator, for the other floor that applies to large businesses.
- Business tax calculator, for AOPs and individuals with business income.
Because super tax affects relatively few taxpayers, it often gets less attention than it deserves in planning. For those it does affect, it can be one of the largest single items in the tax bill, so it should be estimated early in the year, not left to the return.
Frequently asked questions
What is the super tax rate in Pakistan for 2026-27?
8% of income for most persons whose income exceeds Rs 500 million, and 10% for banks and specified sectors above Rs 150 million.
Is super tax charged only on income above the threshold?
No. Once income crosses the threshold, the rate applies to the whole income.
Are exporters exempt?
Yes, where export proceeds exceed 80% of total turnover for the year.
Does super tax apply to salaried individuals?
Only in the very rare case where income exceeds the threshold. In practice it is mainly paid by large companies.
Rates: Income Tax Ordinance 2001 and its schedules as amended by the Finance Act 2026, plus FBR's withholding tax rate card for Tax Year 2027. Results are estimates. Check with FBR or a tax adviser before acting on them.