Pakistan Income Tax Calculator 2026-27 for Business Individuals and AOPs
Income tax in Pakistan for 2026-27 for business individuals, AOPs and mixed income: FBR slabs from 15% to 45%, the 75% salary test and the 10% surcharge.
Income under the final tax regime (such as dividends, profit on debt and capital gains on securities) is taxed separately and is not included here. Tax deducted at source during the year is credited against this amount.
What it does
Individuals with business, professional or other income, and associations of persons such as partnerships, pay income tax in Pakistan on the Division I slabs: nothing up to Rs 600,000, then 15%, 20%, 30%, 40% and 45% above Rs 5.6 million (40% for professional firms), plus a 10% surcharge on the tax when taxable income passes Rs 10 million. The Finance Act 2026 did not change these slabs.
How to use it
- Choose an individual, an AOP or a professional firm.
- Type the salary and the business and other income for the year.
- Read the tax, the surcharge, the effective rate and which slabs apply.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
When do the salaried slabs apply?
When salary is more than 75% of taxable income. With Rs 2 million of salary and Rs 1 million of business income salary is 67%, so the whole Rs 3 million is taxed on the normal slabs: Rs 590,000.
How much tax is due on Rs 2 million of business income?
Rs 170,000 for the first Rs 1.6 million plus 30% of the Rs 400,000 above it: Rs 290,000, an effective rate of 14.5%.
How does the surcharge work?
Above Rs 10 million of taxable income, section 4AB adds 10% of the tax. An AOP with Rs 12 million pays Rs 4,490,000 on the slabs plus Rs 449,000 of surcharge: Rs 4,939,000.
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