KPK Agricultural Income Tax Calculator (2025–2026)

KPK Agricultural Income Tax Calculator 2026-2027

The KPK Agricultural Income Tax Calculator helps farmers and agricultural businesses estimate their agricultural income tax in Khyber Pakhtunkhwa.

KPK introduced a new agricultural tax system through the Khyber Pakhtunkhwa Agricultural Income Tax Act, 2025. The Act took effect from 1 January 2025 and replaced the older 2000 agricultural tax law.

Under the current system, agricultural income up to Rs 600,000 falls in the zero-tax bracket for small farmers. Progressive rates then rise from 15% to 45% within the published individual schedule.

The province also uses land-based agricultural tax rates. Therefore, an income-only calculation may not always represent the final agricultural tax assessment for a landowner.

This calculator gives an estimate based on agricultural income. If you also own or cultivate agricultural land, check the separate KPK Agricultural Land Tax Calculator as well.

How to Use the KPK Agricultural Income Tax Calculator

Using the calculator is simple.

For an individual farmer, the calculator applies the progressive agricultural income tax slabs.

A qualifying small company uses a 20% rate. Other companies engaged in corporate farming use a 29% rate.

Do not enter ordinary salary or non-agricultural business income into this calculator.

The tool is specifically intended for agricultural income covered by the Khyber Pakhtunkhwa agricultural income tax law.

KPK Agricultural Income Tax Rates 2026-27

These rates come from Division I of Part I of the Schedule to the Khyber Pakhtunkhwa Agricultural Income Tax Act, 2025.

The first Rs 600,000 is therefore not taxed for an individual covered by this schedule.

It is important to use the progressive formula correctly.

For example, someone earning Rs 1.5 million does not pay 20% of the entire Rs 1.5 million. The statutory formula applies Rs 90,000 plus 20% of the amount above Rs 1.2 million.

Important note for income above Rs 150 million

The original 2025 Act also introduced a separate agricultural super tax above Rs 150 million.

The KP Finance Act 2026 removed the super-tax section and deleted Division III of the Schedule.

However, the published Division I table still describes its highest ordinary slab as income above Rs 5.6 million but not exceeding Rs 150 million.

For this reason, this calculator should not automatically estimate 2026-27 tax above Rs 150 million without current clarification from the KP Revenue Department.

How Is Agricultural Income Tax Calculated?

For individual farmers, KPK uses progressive tax slabs.

Only the portion falling into the next band is taxed at the higher marginal rate.

Suppose your annual agricultural income is:

Rs 1,000,000

The first Rs 600,000 falls in the zero-tax band.

Remaining amount:

Rs 1,000,000 – Rs 600,000 = Rs 400,000

Tax:

Rs 400,000 × 15% = Rs 60,000

Estimated agricultural income tax:

Rs 60,000

The same progressive method applies to the higher brackets.

KPK Agricultural Income Tax Examples

Example 1: Rs 1 Million Agricultural Income

Annual agricultural income:

Rs 1,000,000

Taxable amount above Rs 600,000:

Rs 400,000

Tax:

Rs 400,000 × 15% = Rs 60,000

Estimated tax:

Rs 60,000

Example 2: Rs 1.5 Million Agricultural Income

Applicable formula:

Rs 90,000 + 20% of amount above Rs 1,200,000

Excess:

Rs 1,500,000 – Rs 1,200,000 = Rs 300,000

Additional tax:

Rs 300,000 × 20% = Rs 60,000

Total estimated tax:

Rs 90,000 + Rs 60,000 = Rs 150,000

Example 3: Rs 3 Million Agricultural Income

Applicable formula:

Rs 170,000 + 30% above Rs 1,600,000

Excess:

Rs 3,000,000 – Rs 1,600,000 = Rs 1,400,000

Additional tax:

Rs 1,400,000 × 30% = Rs 420,000

Total estimated tax:

Rs 590,000

Example 4: Rs 6 Million Agricultural Income

Applicable formula:

Rs 1,610,000 + 45% above Rs 5,600,000

Excess:

Rs 400,000

Additional tax:

Rs 400,000 × 45% = Rs 180,000

Total estimated tax:

Rs 1,790,000

Frequently Asked Questions