Business / AOP Tax Calculator

Estimate income tax on business profit for sole proprietors, other business individuals and associations of persons (AOPs) under the normal slab rates.

Your details

Results update as you type. Nothing you enter here is saved.

What do you want to enter?

Taxable profit for the year after allowable business expenses.

Only expenses that are allowed as a deduction under the tax law.

Estimated business income tax Tax year 2026-2027

Enter your annual business profit to see the tax and the slab-by-slab breakdown.

Estimate only. This is an estimate only and is not tax advice. Your actual liability depends on exemptions, tax credits, other income and the FBR rules that apply to you.

Assumptions

  • The normal slab regime for business individuals and AOPs applies to all of the profit entered.
  • Profit is the taxable profit after allowable business expenses; depreciation, inadmissible expenses and brought-forward losses are not adjusted.
  • Minimum tax, final tax regimes and tax already withheld or paid in advance are not taken into account.
  • The taxpayer is a resident individual or AOP, not a company.

Source of the rates

Tax year
2026-2027
Legal source
Income Tax Ordinance 2001, First Schedule, Part I, Division I (non-salaried) — CONFIRM against the gazetted Finance Act 2026 before publishing
Last verified
12 Oct 2026

This is an estimate only and is not tax advice. Your actual liability depends on exemptions, tax credits, other income and the FBR rules that apply to you.

Printed from AsaanTax.pk — https://www.asaantax.pk/tax-calculators/business-aop-tax-calculator — on 13 Oct 2026.

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Income tax slabs for business individuals and AOPs — tax year 2026-2027

These are the slabs this calculator uses for income earned from 1 July 2026 to 30 June 2027.

Taxable income for the yearIncome tax
Up to PKR 600,000No tax
PKR 600,001 – 1,200,00015% of the amount above PKR 600,000
PKR 1,200,001 – 1,600,000PKR 90,000 + 20% of the amount above PKR 1,200,000
PKR 1,600,001 – 3,200,000PKR 170,000 + 30% of the amount above PKR 1,600,000
PKR 3,200,001 – 5,600,000PKR 650,000 + 40% of the amount above PKR 3,200,000
Above PKR 5,600,000PKR 1,610,000 + 45% of the amount above PKR 5,600,000

A surcharge of 10% of the income tax is added when taxable income is above PKR 10,000,000.

Source: Income Tax Ordinance 2001, First Schedule, Part I, Division I (non-salaried) — CONFIRM against the gazetted Finance Act 2026 before publishing. Last verified: 12 Oct 2026.

How the calculation works

Individuals whose income is mainly from business, and associations of persons such as partnership firms, pay income tax on their taxable income for the tax year under slab rates set by the Income Tax Ordinance 2001. These slabs are different from the slabs for salaried individuals.

  1. Taxable profit is your revenue minus allowable business expenses, or the profit you enter directly.
  2. The calculator finds the slab the profit falls in for the tax year you selected.
  3. The tax is the fixed amount of that slab plus the slab rate applied to the profit above the start of the slab.
  4. If the law for that tax year adds a surcharge on high incomes, it is added and shown on its own line.

What this calculator does not cover

This is the normal slab regime for business individuals and AOPs only. It does not include:

  • Minimum tax, such as minimum tax on turnover, which can be payable even when the profit is low or there is a loss.
  • Final tax regimes, where tax collected or deducted at source on certain receipts is treated as the final tax on that income.
  • Withholding tax adjustments: tax already collected or deducted from you during the year, which is set off against the tax due.
  • Depreciation, inadmissible expenses, brought-forward losses and tax credits, all of which change the taxable profit or the tax.
  • Companies, which are taxed at corporate rates and not under these slabs.

For a business, the tax in the return is often different from a simple slab calculation. Our team can prepare the full working from your accounts.