For sole proprietors, freelancers working locally and associations of persons (AOPs) such as partnership firms. Enter your taxable profit for the year to see the tax under the rates for non-salaried individuals and AOPs, including the 10% surcharge on income above Rs 10 million.
For sole proprietors, freelancers working locally and AOPs, on profit after expenses.
Enter your profit to see the tax for the year.
Income tax for the year
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Minimum tax on turnover (section 113) and separately taxed income are not included.
Get it checked by KLACompare the same amount across tax years
| Tax year | Tax | Rate | Comparison |
|---|
Estimates only, using each year’s Finance Act rates. Rules last checked 12 November 2026.
Business and AOP tax rates: 2026-27 (tax year 2027)
| Annual taxable income | Tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 – Rs 1,200,000 | 15% of the amount above Rs 600,000 |
| Rs 1,200,001 – Rs 1,600,000 | Rs 90,000 + 20% of the amount above Rs 1,200,000 |
| Rs 1,600,001 – Rs 3,200,000 | Rs 170,000 + 30% of the amount above Rs 1,600,000 |
| Rs 3,200,001 – 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 |
Finance Act 2026; 10% surcharge above Rs 10 million.
Earlier tax years
2025-26 (tax year 2026)
| Annual taxable income | Tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 – Rs 1,200,000 | 15% of the amount above Rs 600,000 |
| Rs 1,200,001 – Rs 1,600,000 | Rs 90,000 + 20% of the amount above Rs 1,200,000 |
| Rs 1,600,001 – Rs 3,200,000 | Rs 170,000 + 30% of the amount above Rs 1,600,000 |
| Rs 3,200,001 – 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 |
Finance Act 2025; 10% surcharge above Rs 10 million.
2024-25 (tax year 2025)
| Annual taxable income | Tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 – Rs 1,200,000 | 15% of the amount above Rs 600,000 |
| Rs 1,200,001 – Rs 1,600,000 | Rs 90,000 + 20% of the amount above Rs 1,200,000 |
| Rs 1,600,001 – Rs 3,200,000 | Rs 170,000 + 30% of the amount above Rs 1,600,000 |
| Rs 3,200,001 – 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 |
Finance Act 2024; 10% surcharge above Rs 10 million.
2023-24 (tax year 2024)
| Annual taxable income | Tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 – Rs 800,000 | 7.5% of the amount above Rs 600,000 |
| Rs 800,001 – Rs 1,200,000 | Rs 15,000 + 15% of the amount above Rs 800,000 |
| Rs 1,200,001 – Rs 2,400,000 | Rs 75,000 + 20% of the amount above Rs 1,200,000 |
| Rs 2,400,001 – Rs 3,000,000 | Rs 315,000 + 25% of the amount above Rs 2,400,000 |
| Rs 3,000,001 – 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 |
Finance Act 2023.
2022-23 (tax year 2023)
| Annual taxable income | Tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 – Rs 800,000 | 5% of the amount above Rs 600,000 |
| Rs 800,001 – Rs 1,200,000 | Rs 10,000 + 12.5% of the amount above Rs 800,000 |
| Rs 1,200,001 – Rs 2,400,000 | Rs 60,000 + 17.5% of the amount above Rs 1,200,000 |
| Rs 2,400,001 – Rs 3,000,000 | Rs 270,000 + 22.5% of the amount above Rs 2,400,000 |
| Rs 3,000,001 – Rs 4,000,000 | Rs 405,000 + 27.5% of the amount above Rs 3,000,000 |
| Rs 4,000,001 – Rs 6,000,000 | Rs 680,000 + 32.5% of the amount above Rs 4,000,000 |
| Above Rs 6,000,000 | Rs 1,330,000 + 35% of the amount above Rs 6,000,000 |
Finance Act 2022.
Business tax questions
What are the tax rates on business income for 2026-27?
Taxable income up to Rs 600,000 is tax-free. The rate is 15% on the next Rs 600,000 and rises in steps to 45% on income above Rs 5.6 million. The same table applied in 2024-25 and 2025-26.
Do partnerships (AOPs) pay the same rates?
Yes, an AOP is taxed on the same table as a non-salaried individual. Some professional firms that are not allowed to become companies pay 40% instead of 45% in the top slab; ask us if that applies to you.
Is there a surcharge?
Yes. From 2024-25, a surcharge of 10% of the tax applies where taxable income is above Rs 10 million.
What does this calculator not include?
Minimum tax on turnover (section 113), income taxed under final or separate regimes such as exports, and tax credits. If your turnover is high and your profit is low, the minimum tax may be higher than the result shown here.