Instant
Business Income Tax Calculator 2026
Calculate your business income tax in Pakistan instantly using the latest FBR rates. This tool applies the non-salaried slabs for individuals and AOPs (0% to 45%) and the 29% company rate, including surcharge and super tax, to estimate your exact tax and net income.
Updated for Tax Year 2025-2026
Covers AOP, Sole Proprietor & Company
Based on FBR Business Tax Rates
Used by businesses across Pakistan
Karachi | Lahore | Islamabad | Peshawar | Faisalabad | Gujranwala | Sialkot | Rawalpindi | Multan | Sargodha | Bahawalpur
Calculate your business income tax
- ✓ Up to Rs. 600,000 — 0%
- ✓ Rs. 600,001 – 1,200,000 — 15% of amount exceeding Rs. 600,000
- ✓ Rs. 1,200,001 – 1,600,000 — Rs. 90,000 + 20% exceeding Rs. 1,200,000
- ✓ Rs. 1,600,001 – 3,200,000 — Rs. 170,000 + 30% exceeding Rs. 1,600,000
- ✓ Rs. 3,200,001 – 5,600,000 — Rs. 650,000 + 40% exceeding Rs. 3,200,000
- ✓ Above Rs. 5,600,000 — Rs. 1,610,000 + 45% exceeding Rs. 5,600,000
- ✓ Company — flat 29% (small company 20%)
How to Use the Business Income Tax Calculator
- Select your fiscal year
- Choose taxpayer type (Individual/AOP or Company)
- Select your income period
- Enter your total business income
- Click Calculate to see tax, rate and net income
Reviewed & Verified by Umair A R Mughal , for Tax Year 2025-2026
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Quick answers About Business Income Tax in Pakistan
What is business income tax
Tax on profits earned by individuals, AOPs and companies from business activity under the Income Tax Ordinance, 2001.
Who pays business tax?
Sole proprietors, partnerships (AOPs) and companies earning taxable business income in Pakistan.
How are companies taxed?
Companies pay a flat 29% (small companies 20%), plus super tax on high income, while individuals/AOPs use progressive slabs.
Which authority regulates it?
Which year is covered?
Tax Year 2025-2026.
| Annual Business Income (PKR) | Tax Rate |
|---|---|
| Up to 600,000 | 0% |
| 600,001 - 1,200,000 | 15% of amount exceeding 600,000 |
| 1,200,001 - 1,600,000 | Rs 90,000 + 20% of excess over 1,200,000 |
| 1,600,001 - 3,200,000 | Rs 170,000 + 30% of excess over 1,600,000 |
| 3,200,001 - 5,600,000 | Rs 650,000 + 40% of excess over 3,200,000 |
| Above 5,600,000 | Rs 1,610,000 + 45% of excess over 5,600,000 |
Worked Examples: Business Income Tax
| Annual Income | Annual Tax | Effective Rate | Net Income |
|---|---|---|---|
| 1,000,000 | 60,000 | 6.0% | 940,000 |
| 2,000,000 | 290,000 | 14.5% | 1,710,000 |
| 4,000,000 | 970,000 | 24.3% | 3,030,000 |
| 8,000,000 | 2,690,000 | 33.6% | 5,310,000 |
| 15,000,000 | 5,825,500 | 38.8% | 9,174,500 |
Who Should Use This Business Income Tax Calculator?
Sole proprietors
Partnerships / AOPs
Private companies
Shopkeepers & traders
Manufacturers
Service providers
Startups
Importers & exporters
Common Mistakes When Calculating Business Income Tax
- Using salaried slabs instead of non-salaried business slabs.
- Forgetting the 9% surcharge above Rs 10 million.
- Confusing turnover with taxable profit.
- Ignoring the difference between AOP and company rates.
- Not deducting allowable business expenses.
Business Income Tax Calculator for All Major Cities
- Islamabad
- Karachi
- Lahore
- Faisalabad
- Gujranwala
- Sialkot
- Peshawar
- Sargodha
- Jhang
- Multan
Frequently Asked Questions About Business Income Tax Calculator 2026
What is the business income tax rate in Pakistan for 2025-2026?
Individuals and AOPs running a business pay progressive non-salaried rates: 0% up to PKR 600,000, then 15%, 20%, 30%, 40% and 45%, with 45% applying above PKR 5,600,000. Companies pay a flat 29% (small companies 20%).
How much tax does a business pay on PKR 2,000,000 profit?
An individual or AOP earning PKR 2,000,000 in business profit pays about PKR 290,000 (PKR 170,000 plus 30% of the amount above PKR 1,600,000) – an effective rate of roughly 14.5%.
How are companies taxed in Pakistan?
Companies pay corporate income tax at a flat 29% on profit (small companies 20%, banking companies higher). High-income companies and individuals may also face a super tax on income above PKR 150 million.
Is there a surcharge on business income?
Yes. A 9% surcharge applies on the calculated tax for individuals and AOPs whose taxable income exceeds PKR 10,000,000, under the Finance Act 2025.
Is this business income tax calculator free?
Yes, it is completely free, provided for educational and estimation purposes to help you plan your business tax.
Who needs to file a business income tax return?
Every individual, AOP and company carrying on business and earning taxable income must register for an NTN and file an annual income tax return with the FBR.
What is the difference between AOP and company tax?
AOPs (partnerships) are taxed on progressive slabs up to 45%, while companies pay a flat corporate rate of 29% (20% for small companies). The right structure depends on profit level and other factors.
Which cities does this calculator cover?
FBR business tax rates apply nationwide, so this calculator works for every major city, including Karachi, Lahore, Islamabad, Faisalabad, Gujranwala, Sialkot, Peshawar, Multan, Sargodha and Rawalpindi.
Which tax year does this calculator use?
This calculator is configured for Tax Year 2025-2026 (1 July 2025 to 30 June 2026).
How can I check my ATL (Filer) status?
Simply type “ATL [space] your 13-digit CNIC” and SMS it to 9966, or verify your Active Taxpayer status on the FBR website.
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