Business Income Tax Calculator (2025–26)
Business Income Tax Slabs
| Annual Income (PKR) | Tax Formula |
|---|---|
| 0 – 600,000 | 0% (Exempt) |
| 600,001 – 1,200,000 | 15% of the amount exceeding 600,000 |
| 1,200,001 – 1,600,000 | PKR 90,000 + 20% of the amount exceeding 1,200,000 |
| 1,600,001 – 3,200,000 | PKR 170,000 + 30% of the amount exceeding 1,600,000 |
| 3,200,001 – 5,600,000 | PKR 650,000 + 40% of the amount exceeding 3,200,000 |
| Above 5,600,000 | PKR 1,610,000 + 45% of the amount exceeding 5,600,000 |
Explanation of Business Income Tax Slabs (2025–26)
These are the business income tax slabs as per the Pakistan Budget 2025-26.
Business Tax Slab Explanation – Budget 2025–26
Income up to PKR 600,000
No tax is applied. This range is fully exempt from income tax.
PKR 600,001 – 1,200,000
Tax is 15% of the amount exceeding PKR 600,000.
Example: Income = PKR 1,000,000 → Tax = 15% of 400,000 = PKR 60,000
PKR 1,200,001 – 1,600,000
Fixed base tax of PKR 90,000 + 20% on the amount exceeding PKR 1,200,000.
Example: Income = PKR 1,500,000 → Tax = 90,000 + 20% of 300,000 = PKR 150,000
PKR 1,600,001 – 3,200,000
Base tax of PKR 170,000 + 30% on the amount exceeding PKR 1,600,000.
Example: Income = PKR 2,000,000 → Tax = 170,000 + 30% of 400,000 = PKR 290,000
PKR 3,200,001 – 5,600,000
Base tax of PKR 650,000 + 40% on the amount exceeding PKR 3,200,000.
Example: Income = PKR 5,000,000 → Tax = 650,000 + 40% of 1,800,000 = PKR 1,370,000
Above PKR 5,600,000
Base tax of PKR 1,610,000 + 45% on the amount exceeding PKR 5,600,000.
Example: Income = PKR 6,500,000 → Tax = 1,610,000 + 45% of 900,000 = PKR 2,015,000
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