Business and AOP tax slabs
Business income, an Association of Persons, and a company can follow different tax schedules. Do not apply salaried-person slabs to them.
| Taxpayer type | What to verify |
|---|---|
| Individual business income | Non-salaried schedule, allowable expenses, and any minimum-tax rules |
| AOP | AOP status, its specific schedule, profit allocation, and return requirements |
| Company | Company class, tax year, applicable corporate rate, and credits |
A numeric rate table should be used only after verifying the current First Schedule, taxpayer category, tax year, thresholds, and fixed amounts. This page intentionally does not invent missing rates.
The schedules this site actually holds
| Tax year | Bands | Top band starts | Top rate | Surcharge | Checked on |
|---|---|---|---|---|---|
| 2025-26 | 6 | Rs 4,100,000 | 35% | 9% above Rs 10,000,000 | 10 October 2026 |
| 2026-27 | 8 | Rs 7,000,000 | 35% | Not payable this year | 10 October 2026 |
Both of these are salary tables, and the applicability condition sits inside them: they are read where income under the head "salary" is more than three-quarters of taxable income. A business, an AOP and a company are not tested on that condition, so the bands above do not become theirs just because the income figure looks the same.
For scale: Rs 2,400,000 of annual income run through the 2026-27 salary table comes to Rs 156,000, which is 6.5% of that income. That is what the salaried table says about the number, not a business estimate — and the difference between the two is why this page publishes no business rate table.
Sources for the 2026-27 schedule
- Finance Bill 2026 — Division I salaried table
- Salient Features of Budget 2026-27
- Finance Act 2026 (gazette copy)
How far this check goes. Checked on 2026-10-10 against the Finance Bill 2026 and the Salient Features, both live on that date. The Finance Act 2026 is the enacted counterpart; its gazette PDF is a scanned image, so the band figures were confirmed from the text-bearing FBR documents above rather than extracted from the scan.
Last verified: 10 October 2026 · Source: FBR
What stops the salaried table carrying over
- Business income is profit left after allowable expenses drawn from books of account. The calculator on this site has no expense field, so there is no profit figure here for it to tax.
- An AOP is assessed as a taxpayer in its own right, and the amount allocated to a member is a different number from the AOP's income. Which schedule applies is a question about the AOP, not about the member's job.
- A company is not read on a band table of this shape at all; its rates sit elsewhere in the same First Schedule, and this site has not transcribed them.
- Minimum tax, final tax and withholding taken at the point of receipt can fix what is payable without passing through a band table at all. Nothing on this site estimates those.
Questions people ask
Can I run my shop's income through the salary calculator?
No. The calculator taxes the amount you enter as though it were salary, while business income is what remains after allowable expenses — a figure this site's engine has no field for. Typing in gross receipts produces a number that belongs to neither case.
Why is there no business rate table here at all?
A schedule this site has not read from the enacted First Schedule would be a guess with a decimal point in it. The two salary tables that are published were transcribed from named FBR documents and carry their own verification date; nothing else is offered as a table.
I have a salary and a business. Which schedule decides?
Both heads land in one return, and how the combined figure is treated turns on that year's law. This site shows the salaried schedule and stops there; take the split to a chartered accountant or to FBR.