WorldTax Compareโ† All Comparisons

United Kingdom vs Pakistan
Tax Rate Comparison

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

๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom
vs
๐Ÿ‡ต๐Ÿ‡ฐ Pakistan
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0โ€“45%
Thresholds remain frozen; fiscal drag continuing
No change
0โ€“35%
IMF fiscal consolidation; rate structure maintained
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
0โ€“20%
Standard 20% maintained
No change
18%
18% GST; digitalization of tax collection progressing
No change
Corporate Tax Rate
Corporate Tax Rate
19โ€“25%
25% main rate; possible future reform discussions
No change
29%
29% stable; FDI incentives in SEZs
No change
Capital Gains Tax
Capital Gains Tax
18โ€“24%
Post-Oct 2024 rates in full effect
No change
15%
CGT unchanged; real estate documentation improving
No change
Social Security & Payroll
Social Security / Payroll
~28.3%
15% employer NI; lower secondary threshold remains
No change
~12%
EOBI; provincial systems varying
No change
State, Regional & Local Taxes

๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom โ€” Devolved, Council & Business Rates

Scotland sets its own income tax bands (six bands; top rate 48%). Wales has limited income tax-varying powers. Northern Ireland follows UK rates. All residents pay Council Tax to local authorities (typically ยฃ1,200โ€“ยฃ4,000+/year). Business rates are set nationally but collected locally. SDLT applies to property purchases (LBTT in Scotland, LTT in Wales).

๐Ÿ‡ต๐Ÿ‡ฐ Pakistan โ€” Provincial Sales Taxes & Levies

Pakistan's 4 provinces (Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan) levy their own sales tax on services at 13%โ€“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.

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

United Kingdom vs Pakistan: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom has a higher top income tax rate (0โ€“45% vs 0โ€“35%). ๐Ÿ‡ต๐Ÿ‡ฐ Pakistan is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: United Kingdom has a higher consumption tax (0โ€“20% vs 18%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom offers a lower corporate rate (25% vs 29%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ต๐Ÿ‡ฐ Pakistan taxes investment gains at a lower rate (15% vs 24%), benefiting investors.

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