Professional Tax in Pakistan 2026: Rates & How to Pay

Professional tax in Pakistan is a provincial tax on professions, trades, callings and employment, and a salaried person in Punjab pays Rs 200 a year while a salaried person in Sindh pays nothing.

Here is the full current picture province by province: Punjab’s official schedule, Sindh’s abolition from 1 July 2025, KP’s new 2026 rates from the Gazette, Balochistan’s new 2026 Act, the ICT schedule, for which no official schedule is published, the salary-slip worked examples, and the payment routes with the real portal names.

Professional tax at a glance#

There is no single national rate. Each province sets its own schedule.

A salaried person in Punjab pays Rs 200 a year in professional tax, and a salaried person in Sindh pays nothing, because Sindh abolished it.

What is professional tax in Pakistan#

Professional tax is a provincial tax, not an FBR tax. It is levied by each province on persons engaged in a profession, trade, calling or employment within that province.

It is a fixed annual amount, not a percentage of income. Unlike income tax, it is not calculated as a percentage of income. The amount depends on the category: a company’s paid-up capital, a factory’s number of employees, a trader’s turnover bracket, a professional’s type, or a salaried person’s income-tax status.

The taxing year is 1 July to 30 June in Punjab, KP and Balochistan, the financial year. It is collected by the provincial Excise, Taxation and Narcotics Control Department in Punjab and KP, the Balochistan Revenue Authority in Balochistan from 1 July 2026, and the ICT Excise and Taxation Department in Islamabad.

Professional tax is separate from income tax, from sales tax on services and from filer status. Paying it does not make you an ATL filer, does not change your income tax slab, and does not cover sales tax on services.

There is no Rs 600,000 threshold for professional tax. Punjab and Balochistan trigger the salaried-person rate on whether the person was assessed to income tax in the preceding financial year. KP triggers it on earnings above the notified minimum wage. Sindh has no professional tax at all from 1 July 2025.

Who pays professional tax in Pakistan#

Anyone engaged in a profession, trade, calling or employment in a province that levies the tax must pay it.

• Salaried persons: Punjab Rs 200 a year if assessed to income tax in the preceding financial year; KP by BPS grade, from Rs 1,200 to Rs 4,000 a year; Balochistan Rs 500 a year if assessed to income tax in the preceding financial year; Sindh nothing.
• Companies: Punjab Rs 10,000 to Rs 100,000 by paid-up capital; KP Rs 30,000 to Rs 100,000 by paid-up capital; Balochistan Rs 35,000 to Rs 100,000 by paid-up capital and reserves.
• Factories: Punjab Rs 1,500 to Rs 7,500 by number of employees; KP Rs 20,000 for a chemist or medical store and Rs 40,000 for a restaurant or guest house; Balochistan Rs 5,000 to Rs 10,000 by number of employees.
• Traders and shopkeepers: Punjab Rs 2,000 to Rs 6,000 for commercial establishments; KP Rs 5,000 for a general or grocery store; Balochistan Rs 15,000 for retail and general stores.
• Professionals: Punjab medical consultant Rs 5,000, lawyer Rs 1,000, motor vehicle dealer Rs 20,000 in metro limits; KP specialist doctor Rs 25,000 to Rs 40,000 by city; Balochistan digital content creators Rs 10,000 to Rs 100,000 by income.
• Contractors: Punjab Rs 1,000 to Rs 20,000 by value supplied; Balochistan Rs 20,000 to Rs 100,000 by category A to G.

In Punjab and KP, a person engaged in more than one profession, trade, calling or employment pays only for the one with the highest rate. In Balochistan, a person pays for each profession, not only the highest one.

Professional tax Punjab: rates#

Punjab’s schedule is on the official Punjab Excise and Taxation Department page. The Punjab Finance Act 2025 is about sales tax on services only and does not change the professional tax schedule.

The legal basis is the Punjab Finance Act 1977 and the Punjab Professions and Trade Tax Rules 1977. Every person liable must, before 31 August in each calendar year, furnish a statement to the District Excise and Taxation Officer giving name, address and nature of profession, trade, calling or employment.

The Punjab schedule is on the Punjab Excise and Taxation Department website.

Professional tax Sindh: abolished#

Sindh abolished professional tax from 1 July 2025. The Sindh Finance Act 2025 (Act No. XVI of 2025), passed by the Provincial Assembly of Sindh on 25 June 2025 and assented to by the Governor on 30 June 2025, omits section 11 of the Sindh Finance Act 1964, which was the professional tax levy.

Professional tax was one of five levies abolished: professional tax, entertainment duty, drainage cess, cotton fees and local cess. No professional tax is payable in Sindh for the tax year 2025-26 or 2026-27.

The old Sindh schedule, salaried individuals and professionals Rs 150 a year, is history. Older schedules still listing Sindh rates are out of date.

The Sindh Finance Act 2025 gazette is on the Sindh Laws website.

Professional tax KP: rates 2026-27#

KP’s new rates are in the KP Finance Act 2026, Appendix-III, printed in the KP Government Gazette of 2 July 2026. The department’s own professional tax page still shows an older table. The Gazette is the law, so use the rates below, not the old page.

The exemption is tied to the minimum wage notified under the KP Minimum Wages Act 2013. The last notified KP minimum wage is Rs 40,000 a month. The 2026-27 budget proposed Rs 45,000, but the Labour Department has not notified it. Use Rs 40,000 as the notified figure. For the minimum wage detail, see our minimum wage guide.

The table does not list BPS-1 and BPS-2. Present that as a gap in the printed table, not a charge, and tell the reader to confirm with the accounts office.

A government doctor with no private practice pays the pay scale rate, not the private practice rate. The legal basis is the KP Finance Act 1990 section 7 and the KP Professions, Trades and Callings Tax Rules 1991, with the table replaced by the KP Finance Act 2026 Appendix-III.

The KP Finance Department website is the KP Finance Department website. The KP Excise website is the KP Excise website.

Professional tax Balochistan: rates 2026#

Balochistan’s rates are in the Balochistan Professions, Trades, Callings and Employment Tax Act 2026, in force from 1 July 2026. It is collected by the Balochistan Revenue Authority, not the Excise and Taxation Department.

A person providing a service taxable under the Balochistan Sales Tax on Services Act 2015 is not taxed under the professional tax Act. The old Balochistan E and T page, income-tax-assessed persons Rs 300 a year, is superseded.

Professional tax ICT#

No official ICT Excise and Taxation schedule is published. Confirm the current rate with the ICT Excise Department before paying.

ICT professional tax is collected by the ICT Excise and Taxation Department, deposited in account B01601 at SBP or NBP, Islamabad E and TD branch. The taxing year is 1 July to 30 June.

Is professional tax deducted from salary?#

Yes, in KP it is deducted from salary. In Punjab it is paid by self-assessment, not deducted monthly.

In KP, the drawing and disbursing officer deducts the tax from the May pay bill for government servants. Companies and local bodies deduct it from staff salaries for August, paid in September, and deposit it within 15 days.

In Punjab, the payment routes are self-assessment on ePay Punjab or a manual challan. Punjab has no employer-deduction rule on its official page.

The tax is annual, not monthly. A salaried person pays it once a year. It is not a monthly deduction like income tax withholding. For where it appears on the slip, see our salary slip guide.

The KP BPS-17 lecturer example uses the live teacher guide figures: core gross Rs 87,965 a month, GP Fund Rs 7,619, income tax Rs 380 a month.

In May, the deductions are GP Fund Rs 7,619 plus income tax Rs 380 plus professional tax Rs 1,800, a total of Rs 9,799. The May net is Rs 87,965 less Rs 9,799, Rs 78,166. Every other month the net is Rs 87,965 less Rs 7,619 less Rs 380, Rs 79,966.

Professional tax is Rs 1,800 out of an annual gross of Rs 1,055,580, about 0.17% of the year’s pay.

For the BPS-17 pay detail, see our BPS-17 salary guide.

The Punjab salaried person on Rs 100,000 a month has an annual gross of Rs 1,200,000. TY2027 income tax is 1% of Rs 600,000, Rs 6,000 a year, Rs 500 a month.

Professional tax is Rs 200 a year, because the person was assessed to income tax in the preceding financial year. It does not change the monthly salary. Professional tax is Rs 200 out of an annual gross of Rs 1,200,000, about 0.017% of the year’s pay.

A KP private worker on Rs 80,000 a month earns Rs 40,000 above the notified minimum wage of Rs 40,000. That falls in the band “Rs 20,000 to Rs 50,000 above it”, so professional tax is Rs 1,800 a year.

If the minimum wage were Rs 45,000, the same worker would be Rs 35,000 above it and still fall in the same band, Rs 1,800 a year. The band, not the exact minimum wage, decides the figure here.

A Balochistan income-tax-assessed person pays Rs 500 a year. A person who also runs a shop in a category listed in the schedule pays the shop rate as well, because Balochistan charges for each profession, not only the highest one.

How to pay professional tax online in Pakistan#

Punjab is the only province with a verified online payment route for professional tax.

1. Open ePay Punjab. Go to the ePay Punjab website and select professional tax.
2. Fill the self-assessment form. Enter your name, CNIC, address and nature of profession, trade, calling or employment, and the category that applies to you.
3. Print the deposit slip. ePay Punjab generates a deposit slip for the amount due.
4. Pay. Pay through E-Pay or at any NBP or SBP branch in Punjab. Keep the paid slip as proof.

Punjab also offers a manual route: the ETO (Professional Tax) issues a payment challan (Form PFT-2) on 32-A, the tax is deposited at any NBP or SBP branch in Punjab, and a copy of the paid challan is returned to the ETO.

A clearance certificate needs an application on plain paper, a copy of CNIC, and proof of payment of professional tax up to date.

In KP, private payers deposit the tax at a government treasury or an authorised bank branch on challan Form FPT-1, then send a copy of the paid challan to the District Excise and Taxation Officer within 15 days.

KP has no online payment option for professional tax on the department’s website. Ask the district office whether a bank or app payment is now accepted.

In Sindh there is nothing to pay, because professional tax was abolished from 1 July 2025. In Balochistan, ask the district office for the payment route under the 2026 Act.

Deadlines and penalties#

The deadlines differ by province, and the penalties are heavy.

• Punjab, statement by 31 August: every person liable must, before 31 August in each calendar year, furnish a statement to the District Excise and Taxation Officer.
• Punjab, ex-parte decision: an ex-parte decision can be taken on maximum taxation with 100% penalty under section 4(2) of the Punjab Professions and Trade Tax Rules 1977. Unpaid tax is recovered under the Land Revenue Act 1967. Appeal lies to the Director Excise and Taxation under section 4(3) of the Rules within 30 days.
• KP, payment by 30 September: pay by 30 September of each financial year. After that date a 50% penalty applies on top of the tax, under section 7(2) of the KP Finance Act 1990. Unpaid tax and penalty can be recovered as arrears of land revenue. Appeal within 60 days to the Director Excise and Taxation; the Board of Revenue can then review within 90 days. Report a closed business within 30 days.
• Balochistan: no deadline or penalty rate is published; check with the Balochistan Revenue Authority.
• Sindh: no deadline applies, because professional tax was abolished from 1 July 2025.

Exemptions#

The exemptions differ by province.

• KP, low earners: individuals earning up to the notified minimum wage, Rs 40,000 a month, are exempt. Government employees in BPS-3 to BPS-6 are exempt.
• KP, government doctors: a government doctor with no private practice pays the pay scale rate, not the private practice rate.
• Balochistan, sales tax on services: a person providing a service taxable under the Balochistan Sales Tax on Services Act 2015 is not taxed under the professional tax Act.
• Sindh: everyone is exempt, because professional tax was abolished from 1 July 2025.
• Punjab: the official page lists no exemption. The salaried-person rate applies only to persons assessed to income tax in the preceding financial year.

Professional tax vs income tax#

Professional tax and income tax are two different taxes, collected by two different governments.

The TY2027 income tax slabs are 0% to Rs 600,000 a year, then 1% to Rs 1,200,000, 11% to Rs 2,200,000, 20% to Rs 3,200,000, 25% to Rs 4,100,000, 29% to Rs 5,600,000, 32% to Rs 7,000,000 and 35% above.

The Rs 600,000 threshold is an income tax threshold. It does not apply to professional tax. For the income tax detail, see our income tax guide.

Paying professional tax does not put you on the ATL. The ATL is FBR’s list of income tax return filers under section 181A of the Income Tax Ordinance 2001. Only the income tax return puts you on it. For the ATL detail, see our FBR Active Taxpayer List guide.

Whether professional tax paid is deductible from federal income tax is not settled: no provision covers it.

Mistakes to avoid#

The most common mistakes with professional tax in Pakistan are about Sindh, the amount and the filer question.

• Paying professional tax in Sindh: Sindh abolished professional tax from 1 July 2025. Do not pay the old Rs 150 rate. Older schedules still listing Sindh rates are out of date.
• Treating professional tax as a percentage of income: it is a fixed annual amount per category, not a percentage of income.
• Treating professional tax as an FBR tax: it is collected by the province, not FBR. It is not part of the income tax return.
• Expecting professional tax to make you a filer: paying it does not put you on the ATL. Only the income tax return does that.
• Applying the Rs 600,000 threshold to professional tax: the Rs 600,000 threshold is an income tax threshold. Professional tax has no Rs 600,000 threshold.
• Using the KP department’s old table: the KP Finance Act 2026 Gazette table replaced it from 1 July 2026. Use the Gazette rates.
• Using the old Balochistan rates: the Balochistan 2026 Act sets Rs 500 for income-tax-assessed persons and is collected by the BRA. The old E and T page rate of Rs 300 is superseded.
• Using the KP minimum wage of Rs 45,000: Rs 45,000 was announced in the budget speech, not notified. The last notified KP minimum wage is Rs 40,000.
• Using an Indian professional tax figure: India is a different country with a different tax. None of its figures, deadlines or deduction rules apply in Pakistan.
• Expecting a monthly deduction in Punjab: Punjab payment is by self-assessment on ePay Punjab or by challan. Punjab has no employer-deduction rule on its official page. The verified deduction mechanism is KP’s.
• Stating a Balochistan deadline or penalty: no deadline or penalty rate is confirmed; check with the Balochistan Revenue Authority.

Frequently asked questions#

Is professional tax deducted from salary? In KP, yes. The drawing and disbursing officer deducts it from the May pay bill for government servants, and companies deduct it from August salaries. In Punjab, no. It is paid by self-assessment on ePay Punjab or by challan. The tax is annual, not monthly.

How do I pay professional tax online? In Punjab, open ePay Punjab, fill the professional tax self-assessment form, print the deposit slip, and pay through E-Pay or at any NBP or SBP branch. In KP, there is no online payment option found. Pay by challan Form FPT-1 at a government treasury or an authorised bank branch.

Who has to pay professional tax in Pakistan? Anyone engaged in a profession, trade, calling or employment in a province that levies the tax. Salaried persons, companies, factories, traders, shopkeepers, professionals and contractors all pay, at the rate for their category. Sindh residents pay nothing, because Sindh abolished it.

What is the professional tax rate in Punjab? A salaried person assessed to income tax in the preceding financial year pays Rs 200 a year. Companies pay Rs 10,000 to Rs 100,000 by paid-up capital. Factories pay Rs 1,500 to Rs 7,500 by number of employees.

What is the professional tax rate in Sindh? There is no rate. Sindh abolished professional tax from 1 July 2025 under the Sindh Finance Act 2025. The old rate of Rs 150 a year for a salaried person is history.

What is the professional tax rate in KP? Individuals pay Rs 1,400 to Rs 5,500 a year by monthly earning above the notified minimum wage. Government employees pay Rs 1,200 to Rs 4,000 a year by BPS grade. BPS-3 to BPS-6 are exempt. Businesses pay Rs 5,000 to Rs 100,000 by category.

Is professional tax deducted from salary every month? No. Professional tax is an annual tax, paid once a year. In KP it is deducted once, from the May pay bill for government servants. It is not a monthly deduction like income tax withholding.

Does professional tax apply to government employees? Yes. In KP, government employees pay by BPS grade: BPS-3 to BPS-6 exempt, BPS-7 to BPS-12 Rs 1,200, BPS-13 to BPS-16 Rs 1,400, BPS-17 Rs 1,800, BPS-18 Rs 2,100, BPS-19 Rs 2,500, BPS-20 and above Rs 4,000.

In Punjab, a government employee assessed to income tax in the preceding year pays Rs 200 a year.

What happens if you do not pay professional tax? In Punjab, an ex-parte decision can be taken on maximum taxation with 100% penalty, and unpaid tax is recovered under the Land Revenue Act 1967. In KP, a 50% penalty applies after 30 September, and unpaid tax and penalty can be recovered as arrears of land revenue.

Is professional tax the same as income tax? No. Professional tax is a provincial tax, a fixed annual amount per category, collected by the provincial Excise Department or the BRA.

Income tax is a federal tax, a percentage of income by slab, collected by FBR. Paying professional tax does not make you a filer and does not change your income tax slab.

The federal rule is the same for every province: professional tax is provincial, income tax is federal, and the two never overlap.

A salaried person in Punjab pays Rs 200 a year in professional tax and income tax by the TY2027 slabs. A salaried person in Sindh pays no professional tax at all. A KP government employee pays professional tax by BPS grade, deducted once from the May pay bill.

The ICT schedule below is from 2024, and no official ICT schedule is published. Confirm the current ICT rate with the ICT Excise Department before paying.