Agriculture · Punjab · Tax Year 2026-2027
Punjab Agriculture Tax Calculator
Calculate Punjab's agricultural income tax, which since Tax Year 2025 follows the same slabs as the FBR non-salaried business income tax.
Reading the result
Punjab moved from land area to actual income
Agricultural income tax in Punjab was historically assessed largely on how much land you held. Aligning it with the federal non-salaried slabs changes the basis to income, which is a different exercise: a large holding with a poor season can now owe less than a smaller, more productive one.
It also means the record-keeping expected of a grower is closer to what a business keeps. Input costs, yields and sale proceeds matter to the assessment in a way that acreage alone never required.
Federal exemption does not mean no tax
Agricultural income is excluded from federal income tax because it belongs to the provinces under the Constitution, not because it is untaxed. People read the federal exemption as a general one and are then surprised by a provincial demand. Both statements are true at once: exempt federally, taxable provincially.
Provinces do not follow each other
Each province legislates its own agricultural income tax. Punjab adopting the federal slabs does not mean Sindh, Khyber Pakhtunkhwa or Balochistan have done the same, and a figure worked out here does not carry across a provincial boundary.
Where this stops
This applies the slabs to an income figure you supply. Arriving at agricultural income — which costs are deductible, how to treat produce consumed rather than sold, how a tenancy or share-cropping arrangement divides the income — is the part that takes judgement.
FAQs
Punjab agriculture tax FAQs
Why does Punjab use the FBR business slabs?
The Punjab Agricultural Income Tax (Amendment) Act 2024 omitted the Act's own First and Second Schedules from 1 January 2025 and made the rates "as may be prescribed" by rules; the prescribed schedule mirrors the federal non-salaried slabs (nil to Rs 600,000, up to 45% above Rs 5.6 million) and, from Tax Year 2025, brings livestock income into the net. The 2025 Amendment Act (5 August 2025) changed definitions only, not rates.
What counts as agricultural income?
Income from cultivating land, livestock rearing on agricultural land, and other notified agricultural activities within Punjab — subject to provincial rules on irrigated vs barani (rain-fed) land where applicable.
Do other provinces use the same slabs?
Not necessarily — Sindh, KP and Balochistan can have their own agricultural income tax rules and rates. This calculator is specifically for Punjab; check your own province's current schedule separately.
Is there a super tax on large agricultural incomes?
Yes. Section 3-AA, inserted by the Punjab Agricultural Income Tax (Amendment) Act 2024 (in force 1 January 2025), levies a super tax on high-earning persons "at such rate as may be specified in the Income Tax Ordinance, 2001" — i.e. the federal Section 4C schedule, which starts at Rs 150 million of income. This calculator does not add it; if your agricultural income is above Rs 150 million, add the Section 4C amount separately.
What is the penalty for a late Punjab agricultural return?
Section 8 (as amended in 2024): 0.1% of the tax payable per day of default or Rs 1,000 per day, with a minimum of Rs 10,000 (income up to Rs 1.2 million), Rs 20,000 (up to Rs 40 million) or Rs 50,000 (above Rs 40 million). Late payment attracts default surcharge, not the old Rs 25-a-day penalty.
Is this tax final or adjustable?
Provincial agricultural income tax is generally a separate charge from federal income tax on non-agricultural income — confirm the interaction for your specific situation with a tax advisor.
Related tools
In another province?
See our general guide to agricultural income tax across all provinces.
Open Agriculture Tax Guide