Pakistan Income Tax Calculator
Income tax for business and other non-salaried individuals and associations of persons in Pakistan, tax year 2027: slab tax, the 10% surcharge over 10 million, and income after tax.
Result…
How it's calculated
Tax = fixed amount for the slab + rate × (income − slab start) Slabs (PKR): 0% to 600,000; 15% to 1,200,000; 20% to 1,600,000; 30% to 3,200,000; 40% to 5,600,000; 45% above (40% for a professional firm barred from incorporating) Surcharge = 10% × tax when taxable income > 10,000,000 Total = tax + surcharge
Applies the slab table for individuals other than salaried individuals, and for associations of persons, in clause (1) of Division I, Part I, First Schedule of the Income Tax Ordinance 2001 (set by the Finance Act 2024 and unchanged by the Finance Acts 2025 and 2026), for tax year 2027. Section 4AB adds a 10% surcharge on that tax where taxable income exceeds 10 million rupees. Each slab taxes only the income inside it, and the working shows each one with your numbers.
Your numbers, step by step
About the Pakistan Income Tax calculator
This Pakistan income tax calculator is for people whose income is not mainly salary: shopkeepers, traders, freelancers, landlords and other business owners, and associations of persons (AOPs) such as partnerships. Enter taxable income for tax year 2027 (1 July 2026 to 30 June 2027) and it applies the non-salaried slab table in the Income Tax Ordinance 2001, from 0% up to 600,000 rupees to 45% above 5.6 million, then adds the 10% surcharge that applies once taxable income passes 10 million. It shows the tax before and after the surcharge, the monthly equivalent, income after tax and the effective and marginal rates. Professional firms that the law bars from incorporating get their lower 40% top rate. Each slab is worked through with your numbers. Amounts are in Pakistani rupees (PKR).
How to use it
- Pick the “Taxpayer”: an individual who is not salaried, an AOP, or a professional firm barred from incorporating.
- Enter your “Annual taxable income” after allowable expenses and deductions.
- Read the total income tax, with the slab tax and surcharge shown separately.
- Use the steps to see how much of the income falls in each slab.
Worked example
An individual trader with taxable income of 12,000,000 PKR. Slabs: 600,000 × 15% = 90,000, then 400,000 × 20% = 80,000, 1,600,000 × 30% = 480,000, 2,400,000 × 40% = 960,000 and 6,400,000 × 45% = 2,880,000, for 4,490,000 PKR. Income is over 10 million, so the surcharge is 10% × 4,490,000 = 449,000. Total tax = 4,939,000 PKR, leaving 7,061,000 PKR after tax: an effective rate of 41.16% and a marginal rate of 49.5%.
Updated
Questions people ask
How do I calculate tax on business income in Pakistan?
Work out taxable income (receipts less allowable expenses), then tax each slice at its slab rate: 0% to 600,000, 15% to 1,200,000, 20% to 1,600,000, 30% to 3,200,000, 40% to 5,600,000 and 45% above. Add 10% of that tax if taxable income is over 10 million.
Which tax slabs apply to non-salaried individuals and AOPs in 2026-27?
The table in clause (1) of Division I, Part I of the First Schedule, set by the Finance Act 2024 and unchanged in 2025 and 2026, as printed in the FBR's Income Tax Ordinance 2001 amended up to 30 June 2026. The same table covers individuals and associations of persons.
Why does my tax jump just above 10 million rupees?
The section 4AB surcharge is 10% of the whole tax, not just of the income above 10 million, so crossing the line adds a lump. At exactly 10,000,000 there is no surcharge; at 10,000,001 the surcharge is about 359,000.
I have a salary and a business: which calculator should I use?
If salary is more than 75% of your taxable income, the salaried slabs apply: use the Pakistan salary tax calculator. Otherwise use this one on your whole taxable income.
What does this result leave out?
Income taxed under separate or final regimes (dividends, profit on debt, capital gains on property and shares), minimum and turnover taxes, super tax, tax credits and advance tax already paid are not included, and companies use different rates. For a return or a notice, check with the FBR or a tax adviser.