Tax year 2027
Business and AOP Tax Calculator
The First Schedule holds two tables for individuals, and which one applies turns on a single test: whether salary is more than 75% of your taxable income. This is the other table, and it is considerably steeper than the salary one.
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Your business
Use this where salary is 75% or less of your taxable income. Nothing you type here leaves your browser.
Profit after business expenses, for the whole tax year.
If salary is more than 75% of your taxable income, a different and much lower table applies. Use the salary calculator instead.
Enter your annual taxable income and this works out the tax on it, band by band.
Where these figures come from
- Statutory basis
- Income Tax Ordinance, 2001, as amended by the Finance Act 2026, for tax year 2027 (1 July 2026 to 30 June 2027).
- Last checked against the statute
- by BarrioVibe, which files income tax returns through FBR IRIS.
These figures are an estimate computed from the rates above, not tax advice for your situation. Your return depends on facts a form cannot see, so treat the number as a starting point and speak to us before you file on it.
Read this first
What thisdoes not cover
It is accurate for what it models, and everything below changes the answer. None of it can be handled by a form with a few fields in it.
- Which of the two tables applies to you, which depends on the 75% test and on figures only your own accounts can settle
- What counts as a deductible business expense, which is where most of the real work in a business return is
- Tax already paid: advance tax, tax withheld by your customers, and anything carried forward
- The minimum tax under section 113, which can exceed this figure and replaces it when it does
- Salary income taxed under its own head, and every other head of income
- Provincial sales tax on services, which is levied by your province rather than by FBR
Questions
The questionspeople ask
Which tax table applies to me, salaried or business?
One test decides it: whether salary is more than 75% of your taxable income. Above 75% you are on the salary table, which starts at 1%. At or below it you are on the business table, which starts at 15% and tops out at 45%. The difference between the two on the same income is large, so the test is worth getting right rather than assuming.
Are a sole trader and a partnership taxed the same?
On the slabs, yes: an individual and an association of persons use the same table. They differ on the section 4AB surcharge. An AOP pays 10% of its tax once taxable income passes ten million rupees; for an individual that surcharge was 9% for tax year 2026 and is nil from tax year 2027.
What is the section 4AB surcharge?
An extra charge computed on the tax rather than on the income, which applies above ten million rupees of taxable income. It never applied to income chargeable under the head Salary, and from tax year 2027 it no longer applies to an individual at all. A calculator still adding it to a sole trader’s figure is quoting you too much.
Why is my professional firm capped at 40%?
Because a firm of professionals that is prohibited from incorporating by its own regulator is charged at 40% on its top band rather than 45%. The classic case is a legal practice. It is a ceiling on the top rate rather than a separate table, so every band below it is unchanged.
Does this account for my business expenses?
No. It taxes the taxable income you enter, which is the figure after expenses. Working out what is deductible is where most of the real work in a business return sits, and it needs your accounts rather than a form.
Could I owe more than this?
Yes. Section 113 sets a minimum tax computed on turnover rather than profit, and it replaces this figure when it comes out higher, which is common in a low-margin or loss-making year. It has its own calculator here. Advance tax and tax withheld by your customers are also not in this figure and reduce what you finally pay.
Also here
Other calculatorsfor this
Corporate Tax
Company income tax on yearly profit at the normal, small-company and banking rates, with the section 113 turnover floor applied where it bites.
Minimum Turnover Tax
The section 113 floor computed on sales instead of profit. You pay whichever is higher, which is why a loss-making business still pays it.
Freelancer & IT Export
What your bank deducts from export receipts under section 154A, and what PSEB registration plus filer status would save you on the same income.
Next step
A business return is more than a slab.
What is deductible, what is carried forward and what has already been withheld all sit between this figure and what you actually pay. We prepare and file business and AOP returns.