Business and AOP Tax Calculator 2026-27 (Tax Year 2027)
Calculate income tax on business, professional and other non-salary income for individuals and associations of persons (AOPs) for Tax Year 2027 (1 July 2026 to 30 June 2027).
Business or professional income after allowable expenses, plus other income taxed at normal rates.
Income tax payable
Rs 0
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- Taxable income
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- Tax on slabs
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- Surcharge (section 4AB)
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- Income after tax
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- Effective tax rate
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Indicative estimate under Division I, Part I of the First Schedule to the Income Tax Ordinance, 2001 for individuals (other than salaried) and AOPs, Tax Year 2027. Surcharge at 10% of tax is included where taxable income exceeds Rs 10 million. Does not account for tax credits, minimum or final taxes, or adjustable withholding taxes.
Who these rates apply to
The non-salaried slabs apply to individuals whose salary is not more than 75% of taxable income, sole proprietors, freelancers with local income, professionals in practice, and AOPs such as partnerships. Salaried individuals use the salary tax calculator.
How the tax is worked out
Tax is a fixed amount plus a percentage of income above the lower limit of the slab. Example: taxable income of Rs 3,000,000 falls in the Rs 1,600,001 to Rs 3,200,000 slab, so tax is Rs 170,000 + 30% of Rs 1,400,000 = Rs 590,000. A surcharge of 10% of tax applies where taxable income exceeds Rs 10 million.
Frequently asked questions
Is the business tax rate the same for an AOP and an individual?
Yes. Individuals (other than salaried) and AOPs use the same slabs. An AOP that is a professional firm barred from incorporating by its professional rules has a top rate of 40% instead of 45%.
Can I reduce tax by deducting expenses?
Business expenses incurred wholly and exclusively for the business are deductible if they are supported by records. Enter taxable income after allowable expenses.
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Last updated 31 October 2026. Rates: FBR Withholding Tax Rate Card for Tax Year 2027 and the Income Tax Ordinance, 2001 as amended up to 30 June 2026. Estimates only; not advice for your specific circumstances.