Sales tax calculator

The federal standard rate on goods is 18% under section 3(1) of the Sales Tax Act 1990. The Finance Act 2026, which applies from July 1, 2026, is reported by KPMG Taseer Hadi to leave the standard rate unchanged. Some goods are exempt, zero-rated or taxed at other rates, so check the schedules for your product.

It was 18% on goods in 2025–26 as well. Services are taxed by the provinces and by FBR in Islamabad, at different rates. This calculator lists them with the date each was last checked.

To add tax: price × rate / 100 is the tax, and price + tax is the total. To take tax out of a price that already includes it: price × 100 / (100 + rate) gives the price before tax. For example, Rs 1,180 × 100 / 118 = Rs 1,000, so the tax is Rs 180. Subtracting 18% of Rs 1,180 gives Rs 967.60, which is wrong, because the 18% was worked on the price before tax.

The sales tax law does not use the word filer. It talks about registered persons and active taxpayers. An active taxpayer is a registered person who has not been blacklisted or suspended and has filed the required sales tax and income tax returns and withholding statements on time (section 2(1A)). The main difference is further tax, explained in the next answer. Income tax has its own filer and non-filer rules. We only cover the online seller rates here.

Under section 3(1A) of the Sales Tax Act, when a registered seller supplies taxable goods to a buyer who has no sales tax registration, or is registered but not an active taxpayer, a further 4% is added on top of the normal rate. So a sale of goods can carry 22%. The government proposed to drop it in the 2025–26 budget, but the Act as updated to 2025–26 still shows 4%. FBR can also exempt certain supplies by notification, so confirm it applies to your sale.

The general rates we found are Punjab 16%, Sindh 15%, Khyber Pakhtunkhwa 15%, Balochistan 15% and Islamabad 15%. Telecom is 19.5% in Punjab and Sindh. Each province also has many services at lower rates, for example 5% or 8% for some, so the general rate may not be the one on your invoice. Sources disagree on Khyber Pakhtunkhwa and Islamabad, with some websites showing 16%, so use Other rate if your authority says otherwise.

Federal sales tax is on goods. Services are taxed by the province where they are provided, or by FBR in Islamabad. If you sell clothes or shoes, the federal rate is the one. If you stitch, design, repair or deliver for a fee, ask whether a provincial authority applies.

Couriers must collect tax on cash on delivery parcels and payment companies on online payments for digitally ordered goods. Sales tax is 2% of the gross value of supplies (Sales Tax Act, section 3(3)(c) and Eleventh Schedule serial 8). Income tax under section 6A and section 153(2A) is 1% on digital payments and 2% on cash on delivery, according to KPMG Taseer Hadi’s brief of the Finance Act 2026, which also lists 2% and 4% for non-active taxpayers. The Sales Tax Act says the 2% is the final tax for cottage industries and for retailers other than Tier-1 retailers. Online marketplaces and couriers must also refuse sellers who have no NTN (section 14).

In many small cases it is, but not always. KPMG reports that the Finance Act 2026 made the income tax adjustable for sellers with turnover above Rs 200 million, and lets smaller sellers opt out of the final regime from tax year 2027. Whether you can claim the amount against your tax bill depends on your registration and your return. Ask a tax adviser.

Section 14 of the Sales Tax Act requires persons selling digitally ordered goods from within Pakistan through a marketplace, website or app to register, with exceptions for cottage industries and retailers who pay through their electricity bill. Whether it applies to you depends on what you sell and how you are set up, so check with FBR or a tax adviser.

It widened the list of goods taxed on the printed retail price when sold in retail packing, including footwear, bags and some cosmetics. This mostly concerns makers and importers who set that price. It also brings in e-invoicing rules for registered persons. We found no change to the 18% standard rate.

Provincial authorities change rates in their own Finance Acts each July, and not every website updates. We prefer the Act or authority itself, then reputable firms such as EY and KPMG, and we flag when sources disagree. Every rate in the calculator can be changed.

No. It is a calculator built from public sources, and the online seller figures are estimates. Rates, exemptions and rules change, and your case may differ. Check with a tax adviser or with FBR or your provincial revenue authority before you file or invoice.

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