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India vs Pakistan
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇮🇳 India
vs
🇵🇰 Pakistan
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–30%
Zero tax slab expanded; new regime standard
No change
0–35%
IMF fiscal consolidation; rate structure maintained
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
0–28%
Further GST rationalization expected
No change
18%
18% GST; digitalization of tax collection progressing
No change

Corporate Tax Rate

Corporate Tax Rate
22–25%
Pillar Two domestic rules being finalized
No change
29%
29% stable; FDI incentives in SEZs
No change

Capital Gains Tax

Capital Gains Tax
12.5–20%
12.5% LTCG equity; 20% property with indexation
No change
15%
CGT unchanged; real estate documentation improving
No change

Social Security & Payroll

Social Security / Payroll
24%
New social security code implementation ongoing
No change
~12%
EOBI; provincial systems varying
No change
State, Regional & Local Taxes

🇮🇳 IndiaState, Professional & GST Variation

India's 28 states levy professional tax (up to ₹2,500/year), stamp duty on property (3%–8%), and state excise on alcohol. GST has largely unified indirect taxes but petroleum products remain state-controlled. Property tax (nagar nigam) varies by city. Maharashtra, Karnataka, and Tamil Nadu have higher professional taxes.

🇵🇰 PakistanProvincial Sales Taxes & Levies

Pakistan's 4 provinces (Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan) levy their own sales tax on services at 13%–16%, separate from federal GST on goods. Agricultural income tax is exclusively provincial, though poorly collected. Sindh has the most developed provincial tax authority (SRB). Urban immovable property tax is provincial. Development surcharges and cess taxes vary by province. The FBR (Federal Board of Revenue) administers national taxes.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

India vs Pakistan: Key Tax Differences (2026)

💰 Income Tax: 🇵🇰 Pakistan has a higher top income tax rate (0–30% vs 0–35%). 🇮🇳 India is more favourable for high earners.

🛒 VAT/Sales Tax: India has a higher consumption tax (0–28% vs 18%).

🏢 Corporate Tax: 🇮🇳 India offers a lower corporate rate (25% vs 29%), which can influence business location decisions.

📈 Capital Gains: 🇵🇰 Pakistan taxes investment gains at a lower rate (15% vs 20%), benefiting investors.

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