Looking for the full year-by-year archive? Browse our Tax Card Archive for rate cards from Tax Year 2006 onward.
FBR income tax slabs vary depending on who you are — a salaried individual, a non-salaried individual or AOP, or a company — and each category has its own rate structure. This page is the overview across all three; if you’re salaried specifically, our Salary Tax Slabs guide has the full worked table and example.
1. Salaried Individuals — Section 149
Eight brackets from 0% (up to Rs. 600,000) to 35% (above Rs. 7,000,000). The 9% surcharge that used to apply to high earners was removed under the Finance Act 2026-27 for salaried individuals specifically. Full table: Salary Tax Slabs (2026-27).
2. AOPs and Non-Salaried Individuals — Section 18
Freelancers, sole proprietors, and Associations of Persons follow a separate slab structure. Unlike salaried individuals, the 9% surcharge still applies here for taxable income above Rs. 10 million.
3. Companies — Section 4C (Super Tax) and Standard Rates
Company tax rates depend on company type: Small Company 20%, Banking Company 39%, all others 29%, with Alternate Corporate Tax (ACT) under Section 113C at 17% as a floor. Super Tax now only applies where taxable income exceeds Rs. 500 million, at 8% for non-bank companies (banks, E&P, and fertiliser manufacturers remain on a separate schedule). See our Company Income Tax Calculator for the full rate table and calculator.
Which Category Applies to You?
- Regular salary from an employer → Section 149 (salaried)
- Freelance/business income as an individual → Section 18 (AOP/non-salaried)
- Income through a registered company → Section 4C / company rates
Mixing these up is a common mistake we see — someone with both a salary and a side freelance income needs to apply the right slab to each portion, not just pick whichever one has a lower rate. If you’re not sure how your specific income mix should be categorized, get in touch via our contact page.
FAQs
I have both a salary and freelance income — which slab applies?
Both, applied separately to their respective portions — your salary income follows Section 149 slabs, your freelance/business income follows Section 18. They’re not combined into one bracket calculation.
Do these slabs change every year?
Yes, potentially — each Finance Act (tied to the annual federal budget) can adjust rates, thresholds, or surcharges. Always check you’re using the current tax year’s figures, not a prior year’s.
Where can I check historical rates for a past tax year?
See our Tax Card Archive, which covers rate cards going back to Tax Year 2006.
