Tool 10
Rental Income Tax Calculator
Tax your tenant deducts from the rent under Section 155.
Tax on rental income in Pakistan is deducted by the tenant under Section 155 of the Income Tax Ordinance when rent is paid, at a rate that depends on the annual rent and on whether the landlord is on the Active Taxpayer List.
Your rent details
What your tenant takes out of the rent before paying you
How do you want to enter the rent?
The rent agreed before anything is taken off.
Who owns the property?
A company owner pays a flat percentage with no tax-free amount.
Are you on the Active Taxpayer List?
Filing your yearly return puts you on the list and halves the tax taken out.
A private person or family renting from you only has to deduct once they pay Rs. 1,500,000 or more of rent in a year. Companies, government offices and similar tenants deduct from the first rupee.
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Tax on rent under Section 155
Rent paid to one owner, or to two or more owners together, is taxed in steps on the rent for the whole year. Each step only applies to the rent inside it, so the first Rs. 300,000 always has nothing taken out. Non-filers have double the tax taken out.
| Yearly rent | Filer | Non-filer |
|---|---|---|
| Up to Rs. 300,000 | No tax | No tax |
| Rs. 300,001 – Rs. 600,000 | 5% of the rent above Rs. 300,000 | 10% of the rent above Rs. 300,000 |
| Rs. 600,001 – Rs. 2,000,000 | Rs. 15,000 + 10% of the rent above Rs. 600,000 | Rs. 30,000 + 20% of the rent above Rs. 600,000 |
| Above Rs. 2,000,000 | Rs. 155,000 + 25% of the rent above Rs. 2,000,000 | Rs. 310,000 + 50% of the rent above Rs. 2,000,000 |
Rent paid to a company
A company that owns the property pays a flat percentage of the rent. There are no steps and no tax-free amount.
15%
Filer
30%
Non-filer
The flat rate applies from the first rupee of rent.
How the tax on your rent is worked out
The tax is worked out in steps. You pay a fixed amount for the rent below your step, plus the rate for your current step on the rent inside it.
Formula
Tax=fixed amount for lower steps+rate × rent inside your current step
Worked example (2026-27)
A property let for Rs. 100,000 a month, which is Rs. 1,200,000 of rent for the year.
These figures follow the details you entered above.
What happens to this tax
Your tenant pays it to the FBR in your name and gives you a tax certificate.
It is not your final tax — it counts towards the tax you owe for the whole year.
If your final tax works out lower, you can claim the difference back as a refund.
If it works out higher, you pay the balance with your yearly return.
Costs you can claim when you file
A repairs allowance of one-fifth of the rent, with no receipts needed.
Property tax, local rates and other council charges on the property.
Insurance premiums on the building, and ground rent.
Profit paid on money borrowed to buy, build, extend or renovate the property.
Up to 4% of the rent for collecting the rent and running the property.
Legal fees to defend your ownership, and rent a tenant never paid after genuine recovery efforts.
Rental income tax questions
For a filer, nothing on the first Rs. 300,000 of yearly rent; 5% of the rent over Rs. 300,000 up to Rs. 600,000; Rs. 15,000 plus 10% of the rent over Rs. 600,000 up to Rs. 2,000,000; and Rs. 155,000 plus 25% above Rs. 2,000,000. Non-filers pay double.
It is not final. The amount taken out counts towards your tax for the year. If your final tax is lower you claim the difference back as a refund; if it is higher you pay the balance with your return.
Section 155 of the Income Tax Ordinance 2001 is the rule that makes a tenant deduct tax from the rent and pay it to the FBR in the owner's name. It covers rent for land and buildings, including furniture, fittings and services tied to the property.
Double. Rule 1 of the Tenth Schedule increases the rate by 100% for anyone not on the Active Taxpayer List. A company owner off the list pays 30% instead of 15%.
A private person or family only has to deduct once they pay Rs. 1,500,000 or more of rent in a year. Companies, government offices and similar tenants deduct from the first rupee.
Yes. Deduction at source is not a return. Filing is what keeps you on the Active Taxpayer List and lets you claim the allowable expenses and any refund.
Where these figures come from
Every rate in this tool is read from the official documents below. Open any of them to check a figure yourself.
Income Tax Ordinance 2001The main law behind the rates, allowances and sections used in this calculation.- FBR Withholding Tax Rate CardFBR's official table of rates for tax collected and deducted at source.
- Finance ActsThe yearly Acts that set and change each tax year's rates, published by FBR.
FBR IRIS PortalWhere returns are filed and tax already deducted or collected is reported.
Rates last reviewed 20 August 2026 against the sources above. Found a figure that does not match the source? Report a correction.
This calculator gives an estimate, not tax or legal advice, and nothing you type is stored unless you send it to us. Confirm your final position with a qualified Pakistan tax professional.
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