Pakistan Rental Income Tax Calculator (Section 155)
See how much tax your tenant withholds from your rent for FY 2026-27, how much rent you keep, and how much more it costs to be a non-filer. Covers individual/AOP owners and company-owned property.
Tax on rent in Pakistan for FY 2026-27
Rent paid to an individual 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 carries no tax.
| Yearly rent | Filer | Non-filer |
|---|---|---|
| Up to Rs. 300,000 | No tax | No tax |
| Rs. 300,001 – 600,000 | 5% of the amount above Rs. 300,000 | 10% of the amount above Rs. 300,000 |
| Rs. 600,001 – 2,000,000 | Rs. 15,000 + 10% above Rs. 600,000 | Rs. 30,000 + 20% above Rs. 600,000 |
| Above Rs. 2,000,000 | Rs. 155,000 + 25% above Rs. 2,000,000 | Rs. 310,000 + 50% above Rs. 2,000,000 |
A company that owns the property pays a flat 15% (filer) or 30% (non-filer) of the rent, with no tax-free amount and no steps.
Worked example
A filer renting a property for Rs. 100,000 a month receives Rs. 1,200,000 for the year, which falls in the Rs. 600,001–2,000,000 band. Tax = Rs. 15,000 + 10% of (Rs. 1,200,000 − Rs. 600,000) = Rs. 75,000. A non-filer on the same rent pays Rs. 30,000 + 20% of Rs. 600,000 = Rs. 150,000.
Costs you can claim when you file
Under Section 15A, a landlord can deduct a flat 1/5th repairs allowance, property tax and local rates, insurance premiums, ground rent, profit on money borrowed for the property, up to 4% of rent for collection/management, legal fees defending ownership, and irrecoverable rent, before final tax is worked out on the annual return. These lower your final tax, not the amount your tenant withholds.
Rental income tax FAQs
Is the tax on rent final, or can I get it back?
It is not final — it is adjustable against your annual tax liability. If your final tax works out lower once allowable costs are deducted, you can claim the difference as a refund when you file.
What is Section 155?
The Income Tax Ordinance 2001 provision requiring the tenant (or the person paying rent on the tenant’s behalf) to withhold tax on the rent before paying the landlord.
Does my tenant always have to deduct tax from my rent?
A private individual or family tenant only has to withhold once their rent to you reaches Rs. 1,500,000 or more in a year. Companies, government offices and similar tenants withhold from the first rupee.
What is the rate when a company owns the property?
A flat 15% for a filer company, 30% for a non-filer company, on the full rent from the first rupee — no tax-free threshold and no steps.
Is rent under Rs. 300,000 a year taxed?
No, for an individual or AOP landlord. The first Rs. 300,000 of yearly rent carries no withholding, for both filers and non-filers.
More Pakistan tax calculators
- Pakistan Salary Tax Calculator
- Property Purchase Tax Calculator — buyer advance tax under Section 236K
- Freelancer Tax Calculator — IT export tax under Section 154A
- How to File Your Income Tax Return in Pakistan — FBR IRIS guide
Rates verified against the Income Tax Ordinance 2001 (Section 155, Section 15A), Finance Act 2021 and Finance Act 2026. This calculator gives an estimate, not tax or legal advice — confirm your final tax with a qualified Pakistan tax professional.