Tool 06
Business & AOP Tax Calculator
Estimate tax on business or partnership profit, including the surcharge.
Business and AOP income tax in Pakistan is charged on taxable profit using the non-salaried slab rates set by the Federal Board of Revenue, plus the Section 4AB surcharge where taxable income exceeds the threshold.
Your details
Who is being taxed
Sole traders and partnerships use the same rates. From 2024-25 a professional firm's top rate is capped at 40% instead of 45%; in earlier years every business taxpayer topped out at 35%.
How would you like to enter your income?
Business income after allowed expenses. Business only — salary and other income have their own boxes below.
Advance tax or withholding already deducted from you during the year.
Do you also receive a salary?
When your salary is 75% or less of your taxable income, these business rates are charged on your whole taxable income — the salary part included.
Rent and other income taxed at the normal rates. Do not include anything taxed separately at its own fixed rate.
Tax-rate alerts
Section 113 gets revisited most budgets
We'll email you when the minimum turnover rate or the list of sectors it covers changes.
Minimum tax rates on turnover for 2026-27
The rate is a small percentage of your yearly sales. Most businesses use the top line; the law names a handful of trades that pay less.
| Who it applies to | Rate | What this means |
|---|---|---|
| Most businesses | 1.25% | The default, used for any business the law does not name below. |
| Gas utilities, PIA and poultry | 0.75% | Sui Southern and Sui Northern Gas above Rs. 1 billion of sales, PIA, and the poultry industry. |
| Fuel companies and motorcycle dealers | 0.5% | Oil refineries, oil marketing companies and registered motorcycle dealers. |
| Distributors and wholesalers of listed goods | 0.5% | Up from 0.25% for 2026-27. Only if the business is on both active taxpayer lists. |
| Rice mills, flour mills and similar | 0.25% | Also petroleum agents, linked-up large retailers, online marketplaces and used-vehicle sellers. |
The rate for distributors and wholesalers of listed goods went up from 0.25% to 0.5% for 2026-27. Every other rate here is unchanged since 2021-22.
Business & AOP tax rates for 2026-27
Sole traders, partnerships (AOPs) and professionals are taxed in steps on yearly taxable income. Each step applies only to the income inside it, so the first Rs. 600,000 is tax-free.
| Yearly taxable income | Rate on this step | What you pay |
|---|---|---|
| Up to Rs. 600,000 | 0% | No tax |
| Rs. 600,001 – Rs. 1,200,000 | 15% | on income above Rs. 600,000 |
| Rs. 1,200,001 – Rs. 1,600,000 | 20% | plus Rs. 90,000 fixed |
| Rs. 1,600,001 – Rs. 3,200,000 | 30% | plus Rs. 170,000 fixed |
| Rs. 3,200,001 – Rs. 5,600,000 | 40% | plus Rs. 650,000 fixed |
| Above Rs. 5,600,000 | 45% | plus Rs. 1,610,000 fixed |
A Section 4AB surcharge of 10% is added on top of the tax when taxable income is above Rs. 10,000,000. An individual who also draws a salary pays no surcharge in this year; an AOP or professional firm always pays the full 10%.
How your taxable income is worked out
Business tax is charged on your profit, not on your total sales.
Business profit = total income − allowed expenses − other allowed deductions.
Taxable income = that profit, plus any salary and any other taxable income.
The business slab rates are then applied to that taxable income.
Business income or salary?
Use this calculator when most of your income comes from business, not a job.
Business: your salary is 75% or less of your total taxable income.
Salaried: your salary is more than 75% of your total taxable income.
Use the salary calculatorHow the tax is calculated
You pay a fixed amount for the steps you have fully passed, plus the rate for your current step on the income inside it.
Tax = fixed amount for lower steps + rate × income inside your current step
Your income sits in the Rs. 1,600,001 – Rs. 3,200,000 step, so the fixed amount is Rs. 170,000 and 30% applies to the Rs. 1,400,000 above Rs. 1,600,000.
What FILERWISE can do with this
An estimate is not a return. We register you where needed, prepare and file the yearly return, and tell you the deadline and what to keep.
Business & AOP tax questions
Use it when most of your income is from business, a profession or a partnership (AOP) rather than a job — that is, when your salary is 75% or less of your total taxable income. Only if salary is more than 75% do the lower salaried rates apply.
An AOP (Association of Persons) is two or more people in business together, such as a partnership. It is taxed as a single unit on its profit using the same slab rates as a sole trader, and members are generally not taxed again on their share of that profit.
A professional-firm AOP is a partnership of professionals — for example a law or accountancy firm — that the law does not allow to become a company. Since 2024-25 its top rate is capped at 40% instead of 45%. For 2023-24 and earlier the top rate was 35% for every business taxpayer, so the cap changes nothing in those years.
Tax already collected from you during the year — on utilities, imports, contracts and so on — counts towards your yearly bill. Enter it in the 'tax already paid' box and the calculator shows the balance after that credit.
Since 2024-25 a surcharge applies when yearly taxable income is above Rs. 10 million. It is charged on the tax, not the income, and is 10% by default. For an individual who also derives salary income it was 10% in 2024-25, 9% in 2025-26 and nil from 2026-27. A partnership or professional firm always pays the full 10%.
Business tax is charged on profit, so the costs of running the business — rent, salaries, utilities, cost of goods and depreciation among them — are deducted from total income. Enter your profit directly, or enter income and expenses and the calculator works the profit out for you.
Yes. If you run an unincorporated business in your own name, this applies the non-salaried individual slab rates — the same rates an AOP uses — to your whole taxable income for the year.
Tax years 2021-22 through 2026-27, using the non-salaried slab rates for each year, including the Section 4AB surcharge that has applied above Rs. 10 million since 2024-25.
Where these figures come from
Every rate in this tool is read from the official documents below. Open any of them to check a figure yourself.
Income Tax Ordinance 2001The main law behind the rates, allowances and sections used in this calculation.- Finance ActsThe yearly Acts that set and change each tax year's rates, published by FBR.
FBR IRIS PortalWhere returns are filed and tax already deducted or collected is reported.- Active Taxpayer ListFBR's list that decides whether filer or non-filer rates apply to you.
Rates last reviewed 20 August 2026 against the sources above. Found a figure that does not match the source? Report a correction.
This calculator gives an estimate, not tax or legal advice, and nothing you type is stored unless you send it to us. Confirm your final position with a qualified Pakistan tax professional.
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