Professional tax in Pakistan is a provincial tax levied by each province on professionals, businesses, and employees. It is separate from federal income tax and collected by provincial tax authorities. This guide explains professional tax rates for 2026 in Punjab, Sindh, KPK, and Balochistan, and how to pay it correctly.
What is Professional Tax in Pakistan?
Professional tax (also called trade tax or business tax in some provinces) is a small annual tax levied by provincial governments on individuals and businesses operating in their jurisdiction. It is based on income brackets and must be paid annually to the relevant provincial revenue authority. Non-payment attracts penalties and can block business license renewal.
Professional Tax Rates by Province 2026
Punjab Professional Tax (Annual)
| Annual Income | Tax Amount |
|---|---|
| Up to Rs 600,000 | Exempt |
| Rs 600,001 to Rs 1,200,000 | Rs 1,200 |
| Rs 1,200,001 to Rs 2,500,000 | Rs 2,400 |
| Above Rs 2,500,000 | Rs 3,000 |
Sindh Professional Tax (Annual)
| Category | Tax Amount |
|---|---|
| Companies and firms | Rs 3,000 to Rs 10,000 |
| Professionals (doctors, lawyers, CA) | Rs 3,000 |
| Employed individuals | Rs 1,200 to Rs 2,500 |
Important: Professional tax paid to the provincial government is a deductible expense for federal income tax purposes. Keep your professional tax payment receipt to claim this deduction in your annual FBR return.
Professional Tax Compliance by Kamboh Associates
- Professional tax registration with provincial authority
- Annual professional tax calculation and payment
- Professional tax deduction in your FBR return
- Compliance for employers (Punjab EOBI and professional tax)
Professional Tax Help - Simple and Affordable
WhatsApp 0328-4675162. We handle both federal and provincial tax compliance for professionals and businesses.