Business and AOP income tax calculator Pakistan 2026-27
Business / AOP income tax
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Tax year 2027, First Schedule Part I Division I
Income after allowable business expenses, not turnover.
Leave out income taxed separately: rent, bank profit, dividends, property gains, final-tax exports.
Income tax for the year
Rs 410,000
Per month (to budget)
Rs 34,167
Surcharge
Rs 0
none at this income
Effective rate
17.08%
top slab 30%
| Slab (annual taxable income) | Rate | Income in slab | Tax |
|---|---|---|---|
| Rs 0 – 600,000 | 0% | 600,000 | 0 |
| Rs 600,000 – 1,200,000 | 15% | 600,000 | 90,000 |
| Rs 1,200,000 – 1,600,000 | 20% | 400,000 | 80,000 |
| Rs 1,600,000 – 3,200,000 | 30% | 800,000 | 240,000 |
| Rs 3,200,000 – 5,600,000 | 40% | 0 | 0 |
| Above Rs 5,600,000 | 45% | 0 | 0 |
Source
First Schedule, Part I, Division I, clause (1); not amended by Finance Act 2026; section 4AB
- Income Tax Ordinance 2001, FBR consolidated text amended up to 20.02.2026 · last checked 4 November 2026
- Finance Act 2026 (Act XLIII of 2026), Gazette of Pakistan, 26 June 2026 · last checked 4 November 2026
Business and AOP slabs
A professional firm AOP that the law does not allow to incorporate pays 40% instead of 45% on the top slab.
| Annual taxable income | Tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,000 – 1,200,000 | 15% of the amount over Rs 600,000 |
| Rs 1,200,000 – 1,600,000 | Rs 90,000 + 20% of the amount over Rs 1,200,000 |
| Rs 1,600,000 – 3,200,000 | Rs 170,000 + 30% of the amount over Rs 1,600,000 |
| Rs 3,200,000 – 5,600,000 | Rs 650,000 + 40% of the amount over Rs 3,200,000 |
| Above Rs 5,600,000 | Rs 1,610,000 + 45% of the amount over Rs 5,600,000 |
Our reading on surcharge for mixed income
Questions people ask
Did business slabs change in 2026-27?
No. The table for non-salaried individuals and AOPs (0% to 45%) and the 10% surcharge above Rs 10 million are the same as 2025-26. Finance Act 2026 changed only the salaried table.
What if I have a salary and a business?
If salary is more than 75% of your taxable income, the whole income uses the salaried table; otherwise the non-salaried table. The calculator checks this for you.
What is an AOP?
An association of persons: a partnership firm or group of people running a business together. The AOP pays tax on its income; a partner’s share is exempt in the partner’s hands but counts when setting the rate on the partner’s other income (section 88).
Does this include minimum tax or turnover tax?
No. Some business withholding taxes are final or minimum taxes, and minimum tax on turnover (section 113) can apply. This shows the normal slab tax only.
Want a tax consultant to check your case?
Filing a return, becoming a filer, a notice from FBR, or a property or freelance question. Send a short request; asking is free and you decide whether to go ahead.