How the tax is worked out
The calculator finds the slab your taxable income falls in and applies that slab's fixed amount plus its percentage of the income above the slab's start. Only the part of your income inside a slab is taxed at that slab's rate.
Where taxable income exceeds Rs 10,000,000, section 4AB adds a surcharge of a percentage of that slab tax: 2024: 0%, 2025: 10%, 2026: 10%, 2027: 10%. Super tax under section 4C is added only where income passes Rs 150 million, at the rate for the band the whole income falls in. The calculator treats your taxable income as the section 4C income; the two can differ.
Tax years 2025 to 2027: individuals and associations of persons
| Yearly taxable income | Tax |
|---|---|
| Rs 0 to Rs 600,000 | 0% |
| Rs 600,001 to Rs 1,200,000 | 15% of the amount above Rs 600,000 |
| Rs 1,200,001 to Rs 1,600,000 | Rs 90,000 + 20% of the amount above Rs 1,200,000 |
| Rs 1,600,001 to Rs 3,200,000 | Rs 170,000 + 30% of the amount above Rs 1,600,000 |
| Rs 3,200,001 to Rs 5,600,000 | Rs 650,000 + 40% of the amount above Rs 3,200,000 |
| Above Rs 5,600,000 | Rs 1,610,000 + 45% of the amount above Rs 5,600,000 |
Tax year 2024: individuals and associations of persons
| Yearly taxable income | Tax |
|---|---|
| Rs 0 to Rs 600,000 | 0% |
| Rs 600,001 to Rs 800,000 | 7.5% of the amount above Rs 600,000 |
| Rs 800,001 to Rs 1,200,000 | Rs 15,000 + 15% of the amount above Rs 800,000 |
| Rs 1,200,001 to Rs 2,400,000 | Rs 75,000 + 20% of the amount above Rs 1,200,000 |
| Rs 2,400,001 to Rs 3,000,000 | Rs 315,000 + 25% of the amount above Rs 2,400,000 |
| Rs 3,000,001 to Rs 4,000,000 | Rs 465,000 + 30% of the amount above Rs 3,000,000 |
| Above Rs 4,000,000 | Rs 765,000 + 35% of the amount above Rs 4,000,000 |
From tax year 2025, an association of persons that is a professional firm barred from incorporating pays 40% in place of the 45% rate in the top slab.
Where the rates come from
Every rate is read from the Income Tax Ordinance, 2001 as consolidated by FBR. The rates on this page were last checked against the official text on 2026-09-26.
- Income Tax Ordinance, 2001, First Schedule, Part I, Division I, clause (1) and its proviso (as amended to 2026-06-30) official file
- Income Tax Ordinance, 2001, section 4AB, surcharge (as amended to 2026-06-30) official file
- Income Tax Ordinance, 2001, section 4C, super tax (as amended to 2026-06-30) official file
- Income Tax Ordinance, 2001, section 113, minimum tax on turnover (as amended to 2026-06-30) official file
- Income Tax Ordinance, 2001, edition amended to 30.06.2024, tax year 2024 table (as amended to 2024-06-30) official file
Common questions
Who pays tax under this table instead of the salaried one?
Clause (1) of Division I of Part I of the First Schedule covers individuals and associations of persons. Clause (2) moves an individual to the salaried table only where income under the head Salary exceeds 75% of taxable income, so a person whose salary is 75% or less of taxable income, such as a shopkeeper or self-employed professional, stays on this table.
Is there a surcharge on business income above Rs 10 million?
Yes. Section 4AB charges a surcharge of 10% of the income tax under Division I where taxable income exceeds Rs 10 million. The section was inserted by the Finance Act, 2024, so this calculator adds it from tax year 2025 and not for tax year 2024.
What rate does a professional firm pay?
The proviso to the table says that for an association of persons that is a professional firm prohibited from incorporating by any law or by the rules of the body regulating its profession, the 45% rate at serial number 6 is 40%. The other slabs are the same.
Can minimum tax on turnover apply to a business?
Yes. Section 113 reaches an individual or association of persons with turnover of Rs 100 million or above in tax year 2017 or any later tax year. Where the tax worked out on income is less than the percentage of turnover in Division IX of Part I of the First Schedule, the person pays the minimum tax instead. This calculator does not check that; the minimum turnover tax calculator does.
Did the rates for individuals and AOPs change in tax years 2026 and 2027?
Not in the table. The edition amended to 30 June 2026 still shows the table substituted by the Finance Act, 2024, which starts at 15% above Rs 600,000 and reaches 45% above Rs 5.6 million. The surcharge rate for non-salaried persons stayed at 10%.