How super tax is worked out
Super tax is the rate for the band the income falls in, multiplied by the whole of the income. Unlike the slab tables for income tax, crossing a threshold changes the tax on every rupee, so the tax jumps at each band edge.
What counts as income for section 4C
Section 4C(2) defines "income" for this section as the sum of:
- (i) profit on debt, dividend, capital gains, brokerage and commission;
- (ii) taxable income under section 9, other than brought forward depreciation and brought forward business losses, excluding the amounts in clause (i);
- (iii) imputable income as defined in clause (28A) of section 2, excluding the amounts in clause (i); and
- (iv) income computed under the Fourth, Fifth, Seventh and Eighth Schedules, other than brought forward depreciation, brought forward amortization and brought forward business losses.
Clause (i) brings in dividends and capital gains by name, so they count toward the section 4C income alongside taxable income under section 9.
Tax years 2024 and 2025
| Income under section 4C | Rate of tax |
|---|---|
| Up to Rs 150 million | 0% of the income |
| Above Rs 150 million up to Rs 200 million | 1% of the income |
| Above Rs 200 million up to Rs 250 million | 2% of the income |
| Above Rs 250 million up to Rs 300 million | 3% of the income |
| Above Rs 300 million up to Rs 350 million | 4% of the income |
| Above Rs 350 million up to Rs 400 million | 6% of the income |
| Above Rs 400 million up to Rs 500 million | 8% of the income |
| Above Rs 500 million | 10% of the income |
Tax year 2026
| Income under section 4C | Rate of tax |
|---|---|
| Up to Rs 150 million | 0% of the income |
| Above Rs 150 million up to Rs 200 million | 1% of the income |
| Above Rs 200 million up to Rs 250 million | 1.5% of the income |
| Above Rs 250 million up to Rs 300 million | 2.5% of the income |
| Above Rs 300 million up to Rs 350 million | 3.5% of the income |
| Above Rs 350 million up to Rs 400 million | 5.5% of the income |
| Above Rs 400 million up to Rs 500 million | 7.5% of the income |
| Above Rs 500 million | 10% of the income |
Tax year 2027, table substituted by the Finance Act, 2026
| Income under section 4C | Rate of tax |
|---|---|
| Banking company, income above Rs 150 million | 10% of the income |
| Income computed under Part I of the Fifth Schedule, above Rs 150 million, so far as it does not exceed the limit in rule 4 of that Part | 10% of the income |
| Person deriving income from sale of any kind of fertilizer, above Rs 150 million | 10% of the income |
| Any other person, income above Rs 500 million | 8% of the income |
The tax year 2027 table is the one substituted by the Finance Act, 2026, and it carries no tax year column. This site applies it from tax year 2027. The table it replaced gave the tax year 2026 rates above, in a column headed "for tax year 2026 and onwards".
Where the rates come from
Every rate is read from the Income Tax Ordinance, 2001 as consolidated by FBR. The rates on this page were last checked against the official text on 2026-09-26.
- Income Tax Ordinance, 2001, section 4C, super tax on high earning persons (as amended to 2026-06-30) official file
- Income Tax Ordinance, 2001, First Schedule, Part I, Division IIB, printed pages 513 and 514 (as amended to 2026-06-30) official file
- Income Tax Ordinance, 2001, section 147, advance tax, applied by section 4C(5A) (as amended to 2026-06-30) official file
- Income Tax Ordinance, 2001, edition amended to 31.07.2025, earlier Division IIB table (as amended to 2025-07-31) official file
Common questions
What is super tax under section 4C?
Section 4C imposes a super tax for tax year 2022 and onwards on the income of every person, at the rates in Division IIB of Part I of the First Schedule. It is charged in addition to the normal income tax, and the rate applies to the whole of the section 4C income, not just the part above a threshold.
What are the super tax rates for tax year 2027?
The table substituted by the Finance Act, 2026 charges 10% where the income of a banking company, a person with income computed under Part I of the Fifth Schedule, or a person selling fertilizer exceeds Rs 150 million, and 8% where the income of any other person exceeds Rs 500 million. Below those amounts no super tax is charged.
Which year does the new super tax table apply from?
The table substituted by the Finance Act, 2026 has no tax year column. The table it replaced had a column for tax year 2026 and onwards. This site applies the new table from tax year 2027 and the replaced table's 2026 column to tax year 2026. That is a reading of the text, not a statement in it.
What income counts for super tax?
Section 4C(2) defines income as the sum of profit on debt, dividend, capital gains, brokerage and commission; taxable income under section 9, other than brought forward depreciation and brought forward business losses, excluding those amounts; imputable income under clause (28A) of section 2, excluding those amounts; and income computed under the Fourth, Fifth, Seventh and Eighth Schedules, other than brought forward depreciation, amortization and business losses.
Is super tax paid in advance?
Section 4C(3) says it is paid, collected and deposited on the date and in the manner in section 137(1), and section 4C(5A) applies section 147, the advance tax provision, to tax payable under the section.