Agricultural Income Tax Calculator Pakistan 2026-27

Farmers and agricultural landowners in Pakistan are subject to provincial agricultural income tax rather than federal income tax on their farming earnings. The Agricultural Income Tax Calculator Pakistan 2026-27 helps you work out exactly what you owe to your province — whether you are an individual farmer, a family holding, a partnership, or a farming company. With all four provinces (Punjab, Sindh, KP, and Balochistan) now applying a uniform income tax slab structure from 1 January 2025, but with different rules for per-acre land tax and super tax, understanding your total provincial agricultural tax liability has become more straightforward — though each province still has its own quirks. This calculator instantly shows your income tax, effective rate, and highlights the additional land tax considerations for your province.

What Is the Agricultural Income Tax Calculator and Who Is It For?

The Agricultural Income Tax Calculator computes the provincial tax charged on income derived from agricultural land in Pakistan. It is built for:

• Individual farmers – owning and cultivating agricultural land as a sole proprietor.
• Family holdings and partnerships – farming operations run by a family or a group of partners.
• Small farming companies – registered companies that meet the small-company test (taxed at 20%).
• Other farming companies – larger corporate farming entities (taxed at 29%).
• Landowners with orchards – managing mature fruit orchards which are taxed under separate per-acre rules.

The tool applies the correct uniform income slabs introduced in 2025, along with province-specific rules for per-acre land tax (where applicable) and the higher-of rule used in KP and Balochistan.

What's New in FY 2026-27 for Agricultural Income Tax?

The agricultural income tax landscape in Pakistan saw significant changes starting from 1 January 2025, which continue into 2026-27:

• Uniform income tax slabs were introduced across all four provinces, replacing disparate provincial rate structures. Every province now uses the same 5-step progressive scale for farmers.
• Tax-free threshold increased to Rs. 600,000 for individual farmers across Pakistan.
• Company tax rates were harmonized: 20% for small companies and 29% for other companies.
• Super tax was introduced on farm income exceeding Rs. 150 million, applicable in Punjab and Sindh (KP and Balochistan also have provisions).
• Punjab's per-acre rates for 2026-27 are currently under dispute following a 21 April 2026 Assembly ruling that the notifications setting these rates were not validly placed before the Assembly.
• Sindh scrapped its per-acre land tax entirely in 2025, relying solely on income tax.
• KP and Balochistan retained the higher-of rule — you pay whichever is higher: the tax on your income or the per-acre tax on your land.

Agricultural Income Tax Rates for Farmers (2026-27) – Uniform Across Pakistan

From 1 January 2025, all four provinces adopted the same progressive slab structure for taxing farm income. The first Rs. 600,000 of annual farm income is entirely tax-free for individual farmers:

These rates apply to all individual farmers, family holdings, and partnerships. Companies are taxed at flat rates (see below).

Company Tax Rates for Farming (2026-27)

Companies engaged in agriculture are taxed at a flat percentage of their total farm income, with no tax-free threshold. The rate depends on the size of the company:

Super Tax: In Punjab and Sindh, a super tax is levied on farm income exceeding Rs. 150 million, with rates referencing the federal super tax provisions.

Province-by-Province Per-Acre Land Tax Rules

While the income tax slabs are now uniform, the per-acre land tax (where applicable) and assessment rules differ significantly by province:

Punjab

• Charged under: Punjab Agricultural Income Tax Act 1997 (as amended).
• Per-acre tax: Disputed for 2026-27. The Punjab Board of Revenue published rates, but the Assembly ruled on 21 April 2026 that the notifications were not validly placed before the Assembly.
• Action: Treat any per-acre figures as a guide only. Check directly with the Punjab Board of Revenue before making any payment.

Sindh

• Charged under: Sindh Agricultural Income Tax Act 2025.
• Per-acre tax: Scrapped entirely in 2025.
• Action: You pay only the income tax calculated on the uniform slabs — no additional land tax.

Khyber Pakhtunkhwa (KP)

• Charged under: KP Agricultural Income Tax Act 2025.
• Per-acre tax: Rs. 300 – Rs. 3,500 per acre above 12.5 acres. Mature orchards: Rs. 450 – Rs. 3,500 per acre from the first acre.
• Higher-of rule: You pay the higher of the tax on your farm income or the per-acre land tax.

Balochistan

• Charged under: Balochistan Land & Agricultural Income Tax Act 2025.
• Per-acre tax: Rs. 300 – Rs. 3,500 per acre above 12.5 acres. Mature orchards: Rs. 450 – Rs. 3,500 per acre from the first acre.
• Higher-of rule: You pay the higher of the tax on your farm income or the per-acre land tax.

How to Use the Agricultural Income Tax Calculator

1. Select your province: Choose Punjab, Sindh, Khyber Pakhtunkhwa, or Balochistan.
2. Select taxpayer type: Choose "Farmer" (individual/family/partnership), "Small company", or "Other company".
3. Enter farm income: Include all income from agricultural land — crops sold, rent received, and farmhouse income tied to the land.
4. Enter land details (optional): Input the number of ordinary acres and mature orchard acres you farm. Unirrigated land is halved (2 acres = 1 irrigated acre).
5. Enter tax already paid (optional): Any instalments or tax already collected this year will be deducted.
6. Click "Calculate": You instantly see the income tax, effective rate, and province-specific land tax considerations.

Step-by-Step Example Calculation (Punjab – 2026-27)

Let's say you are an individual farmer in Punjab with a farm income of Rs. 1,200,000 for the year.

• Province: Punjab
• Taxpayer type: Farmer (individual)
• Total farm income: Rs. 1,200,000
• Tax-free threshold: Rs. 600,000 (first slice is exempt)
• Taxable amount: Rs. 1,200,000 − Rs. 600,000 = Rs. 600,000
• Income tax: Rs. 600,000 × 15% = Rs. 90,000
• Effective tax rate: Rs. 90,000 ÷ Rs. 1,200,000 = 7.5%
• Income after tax: Rs. 1,200,000 − Rs. 90,000 = Rs. 1,110,000

Per-acre land tax (Punjab): Punjab's per-acre rates for 2026-27 are disputed and await confirmation. If confirmed, the per-acre tax would be calculated on your 25 ordinary acres and 5 orchard acres, and the total could differ from the income tax above. In Sindh, only the Rs. 90,000 would be payable. In KP and Balochistan, you would pay the higher of the income tax (Rs. 90,000) and the per-acre land tax.

How Agricultural Income Fits with Federal Income Tax

Understanding the relationship between provincial agricultural tax and federal income tax is crucial:

• Farm income is exempt from federal tax — the FBR does not tax income from agriculture. Your province taxes it instead.
• Other income is still federally taxed — salary, business profit, rent from non-agricultural property, and investment income are all taxed by the FBR as normal.
• You may still need to declare farm income to the FBR — the FBR asks you to show exempt farm income on your return (for record-keeping). KP and Balochistan use the FBR-declared figure to calculate your provincial tax.
• Other federal taxes still apply — sales tax on purchases, tax on electricity bills, cash withdrawals, and mobile phone usage are unaffected by agricultural income.

Frequently Asked Questions (FAQs)

Disclaimer: This calculator and guide are for informational and educational purposes only. Tax laws and provincial rates are subject to change, and individual circumstances may vary. Punjab's per-acre rates for 2026-27 are currently under legal dispute — treat all figures as a guide and verify with your provincial Board of Revenue before paying. The Federal Board of Revenue (FBR) does not tax agricultural income — it is exclusively a provincial levy. For personalised tax advice, please consult a qualified tax professional or chartered accountant.