If you run a business, work as a freelancer, or operate as part of a partnership (AOP) in Pakistan, your income isn’t taxed the same way as a salaried employee’s. The FBR applies a separate, steeper slab structure to non-salaried individuals and Associations of Persons, and getting the numbers right matters — both for planning your cash flow and for staying compliant when you file your return.

Our calculator is built around the official FBR slabs for Tax Year 2026-27. The first Rs. 600,000 of annual income remains tax-free, just as it was last year. Beyond that threshold, tax is charged progressively — meaning each slab rate only applies to the portion of income that falls within it, not your entire earnings. Rates climb in steps and reach a top rate of 45% for income above Rs. 5,600,000. If you’re earning above Rs. 10 million a year, an additional 10% surcharge is applied on top of your calculated tax.

One important distinction: if you operate as a professional firm — for example, a law practice, medical practice, or accountancy firm — and you’re legally restricted from converting into a company, your maximum tax rate is capped at 40% instead of the standard 45%. Our calculator accounts for this, so make sure to select the correct category before entering your figures.