Pakistan Business Tax Calculator 2026-27

What this calculator covers

Estimate TY2027 federal normal income tax for an individual or AOP whose income follows the non-salary schedule. Enter known taxable business income or build a planning figure from gross receipts less documented allowable expenses.

A qualifying professional AOP that is prohibited from incorporating can select its separate 40% top-rate path. Freelancers choosing a receipt-specific withholding route should start with the Pakistan Freelancer Tax Calculator 2026-27.

For the next related calculation, use the Pakistan Super Tax Calculator 2026-27. Keep this liability separate and auditable.

How the result is calculated

The six-band non-salary schedule is applied progressively. The ordinary path reaches 45%; a qualifying professional AOP uses 40% instead of 45% in the top band. A 10% section 4AB surcharge on computed tax is added when taxable income exceeds PKR 10 million.

Worked check: PKR 3,200,000 produces PKR 650,000 before credits. A company uses the separate Pakistan Company Income Tax Calculator 2026-27.

To compare this result with another relevant method, open the Pakistan Brokerage and Commission Tax Calculator. Use this related calculation when its inputs match the next part of your problem.

How to use the result

Annual tax is the modeled liability after entered credits. Tax already paid is then reconciled into a balance payable or an excess-paid amount, without changing gross liability.

Continue with Pakistan Freelancer Tax Calculator 2026-27 or Pakistan Company Income Tax Calculator 2026-27 for the next calculation.

Important boundaries

This calculator assumes the non-salary schedule applies. Where salary exceeds 75% of total taxable income, use the Pakistan Salary Tax Calculator and obtain advice for mixed heads.

Company tax, section 113 minimum tax, final regimes and sector schedules require separate calculations. The receipts-minus-expenses path does not determine whether every entered expense is legally allowable.

Primary sources

Prepared from the official sources listed below. Source, calculation, content, and browser checks were completed on September 20, 2026. Recheck when the governing law changes or before Tax Year 2028.

Inputs, outputs and result meaning

Calculates annual income tax, estimated balance payable, estimated excess tax paid, and business income after modeled tax from taxpayer type, calculate from, annual taxable business income, and annual gross business receipts with visible method, validation, precision, and limitations.

Inputs

Taxpayer type

Choose professional AOP only for a professional firm prohibited from incorporating by law or its regulating body's rules. Available choices are Individual or ordinary AOP and Qualifying professional AOP.

Calculate from

The receipts-minus-expenses path is a planning bridge, not a tax-return profit-and-loss statement. Available choices are Known taxable business income and Gross receipts minus allowable expenses.

Annual taxable business income

Enter taxable non-salary income after allowable deductions. Supported units include Pakistani rupees (PKR). The field accepts large finite values; use a range meaningful for the real-world quantity.

Annual gross business receipts

Gross business receipts before allowable expenses. Supported units include Pakistani rupees (PKR). The field accepts large finite values; use a range meaningful for the real-world quantity.

Documented allowable business expenses

Use only expenses supportable under the applicable income-tax rules. Supported units include Pakistani rupees (PKR). The field accepts large finite values; use a range meaningful for the real-world quantity.

Eligible tax credits already computed

Enter only a credit amount already computed under the applicable provision. Supported units include Pakistani rupees (PKR). The field accepts large finite values; use a range meaningful for the real-world quantity.

Advance or withholding tax already paid

Used only to estimate the remaining balance or excess paid; it does not change gross liability. Supported units include Pakistani rupees (PKR). The field accepts large finite values; use a range meaningful for the real-world quantity.

Outputs

Annual income tax

This is the primary result. The visible value is displayed without decimal places.

Estimated balance payable

The visible value is displayed without decimal places.

Estimated excess tax paid

The visible value is displayed without decimal places.

Business income after modeled tax

The visible value is displayed without decimal places.

Taxable business income

The visible value is displayed without decimal places.

Schedule tax

The visible value is displayed without decimal places.

Section 4AB surcharge

The visible value is displayed without decimal places.

Monthly equivalent

The visible value is displayed without decimal places.

Marginal rate

It is displayed in %. The visible value uses up to 2 decimal places according to the output rule.

Effective rate

It is displayed in %. The visible value uses up to 2 decimal places according to the output rule.

Determine taxable business income, apply the TY2027 non-salary schedule for the selected taxpayer type, add the section 4AB surcharge where applicable, then reconcile entered credits and tax already paid. Keep the result label, unit, selected mode, and stated limitations together when sharing the answer.

Frequently asked questions