Khyber Pakhtunkhwa Professional Tax 2026-27: New Rates and How to Pay

Professional tax in Khyber Pakhtunkhwa now runs from Rs 1,400 to Rs 5,500 a year for working individuals, and up to Rs 100,000 for businesses. The new table came in with the Khyber Pakhtunkhwa Finance Act, 2026, in force from 1 July 2026. The due date was 30 September, so anyone who has not paid now faces a 50% penalty on top.

We read the Finance Act, 2026 in the Khyber Pakhtunkhwa Government Gazette of 2 July 2026, published by the provincial Finance Department. Its Appendix-III replaces the whole professional tax table in section 7 of the Khyber Pakhtunkhwa Finance Act, 1990. We also read the 1991 professional tax rules and the professional tax page of the Excise, Taxation and Narcotics Control Department, which collects the tax.

One warning before you start. On 3 October 2026 the department's own professional tax page still showed an older table, with much lower figures. The Gazette is the law. Use the rates below, not the old page.

Professional tax rates for individuals in Khyber Pakhtunkhwa

A private worker, shopkeeper or professional pays by monthly earning, measured above the provincial minimum wage. Anyone earning no more than the minimum wage is exempt. Earnings above it pay Rs 1,400 to Rs 5,500 a year, set by how far above the minimum wage you are.

The Act ties the exemption to the minimum wage notified under the Khyber Pakhtunkhwa Minimum Wages Act, 2013. It does not print a rupee figure. The 2026-27 budget proposed Rs 45,000 a month, but that is reported only, because we could not find the Labour Department's notification online. So check the current minimum wage with your employer or the district excise office before you work out your band.

Here is a simple example. Say the minimum wage is Rs 45,000 and you earn Rs 80,000. You are Rs 35,000 above it, so your tax is Rs 1,800 for the year.

Rates for government employees by pay scale

Federal and provincial government employees in KP pay by basic pay scale, not by salary. BPS-3 to BPS-6 are exempt. The rest pay Rs 1,200 to Rs 4,000 a year, and the office deducts it from salary, so you do not visit a bank.

Doctors get a big change. A government doctor with no private practice now pays the pay scale rate above, so a BPS-17 medical officer pays Rs 1,800. A doctor in a private hospital with no private practice pays the individual rate. Specialists in private practice still pay much more, as the next table shows.

The table does not list BPS-1 and BPS-2. We read that as a gap in the printed table, not a charge, but confirm it with your accounts office. This tax is separate from the federal income tax on salary, which follows the salary tax slabs for 2026-27.

Rates for businesses, shops and professionals

Businesses and professions pay a flat yearly amount set by type. A general store pays Rs 5,000, a chemist Rs 20,000 and a specialist doctor in Peshawar Rs 40,000. Companies pay Rs 30,000 to Rs 100,000 based on paid up capital and reserves.

The Act lists 40 entries in all, including flour mills, furniture shops, sweet shops and aesthetic clinics. If you fall in more than one entry, the department's page quotes the law: you pay only the highest one. Hakeems, homeopaths and medical or dental technicians pay Rs 10,000.

How to pay professional tax in KP

Private payers deposit the tax at a government treasury or an authorised bank branch on challan Form FPT-1. Then send a copy of the paid challan to your District Excise and Taxation Officer within 15 days. Salaried staff have it deducted by their employer.

1. Find your entry and amount in the tables above, or in Appendix-III of the Finance Act, 2026.
2. Get challan Form FPT-1 from your district excise and taxation office.
3. Pay it at a treasury or a bank branch authorised to take government receipts. Keep the stamped copy.
4. Within 15 days, send a return with a photocopy of the challan to the District Excise and Taxation Officer.
5. If the officer finds you paid too little, you get Form FPT-2 to pay the difference by a set date.

For government servants, the drawing and disbursing officer deducts the tax from the May pay bill. Companies and local bodies deduct it from staff salaries for August, paid in September, and deposit it within 15 days. Those steps come from rules 3, 4 and 10 of the Khyber Pakhtunkhwa Professions, Trades and Callings Tax Rules, 1991.

The rules date from 1991 and speak only of treasury challans. We could not find an online payment option for professional tax on the department's website. Ask your district office whether a bank or app payment is now accepted before you queue.

Late payment, appeals and closing a business

Pay by 30 September or owe a 50% penalty on top of the tax. Unpaid tax and penalty can be recovered as arrears of land revenue. You can appeal an assessment within 60 days, and you must report a closed business within 30 days.

• Penalty: section 7(2) of the 1990 Act, as quoted by the department, adds 50% of the tax due after 30 September. A Rs 10,000 shop tax becomes Rs 15,000.
• Notice: if you do not pay, the District Excise and Taxation Officer sends Form FPT-3 asking for tax plus penalty.
• Appeal: within 60 days of the order or notice, to the Director Excise and Taxation. The Board of Revenue can then review within 90 days.
• Refund: if you were charged by mistake, apply to the district officer or the Director for a refund or adjustment.
• Closing down: tell the district officer within 30 days, so your name comes off the demand register.

Professional tax is not the only provincial levy with a fixed yearly date. Vehicle owners pay the KP vehicle token tax to the same department. In Punjab the system works differently, under the Punjab professional tax rules.

Common questions

What is the last date for professional tax in KP?

30 September of each financial year. For 2026-27 that date has passed, so payment now carries a 50% penalty.

How much professional tax does a BPS-17 officer pay in Khyber Pakhtunkhwa?

Rs 1,800 a year under the Finance Act, 2026. It is deducted from salary, normally from the May pay bill.

Do government doctors still pay high professional tax?

No, unless they run a private practice. A government doctor with no private practice now pays the pay scale rate, such as Rs 1,800 for BPS-17.

Who is exempt from professional tax in KP?

Individuals earning up to the notified minimum wage, and government employees in BPS-3 to BPS-6.

Where do I pay professional tax in Peshawar?

At a treasury or authorised bank branch, on challan Form FPT-1 from the district excise and taxation office. The department's head office is at Auqaf Plaza, Shami Road, Peshawar Cantt.

Is KP professional tax the same as income tax?

No. Professional tax is a small provincial levy. Income tax is federal and collected by FBR. You may owe both.

How we verified this

What we checked, where we read it, and what we could not confirm.

Last checked on 3 October 2026. All rates, the exemptions and the 1 July 2026 start date are read in the Khyber Pakhtunkhwa Finance Act, 2026, Appendix-III, as printed in the Khyber Pakhtunkhwa Government Gazette, Extraordinary, 2 July 2026, published on the KP Finance Department website. The 30 September due date and 50% penalty are read in section 7 as quoted on the Excise, Taxation and Narcotics Control Department's professional tax page. The challan, return, deduction, appeal and closure steps are read in the Khyber Pakhtunkhwa Professions, Trades and Callings Tax Rules, 1991, as published by the department. The Rs 45,000 minimum wage for 2026-27 is reported only; we could not read the notification. We did not pay the tax ourselves.