Pakistan Rent Tax Calculator 2025-26

Calculate Withholding Tax on Rental Income as per FBR Rates

Rent Tax Information
👤 Individual Rates
Up to 300,000 Exempt
300,001 – 600,000
Filer: 5%
Non-Filer: 10%
600,001 – 2,000,000
Filer: 15,000 + 10%
Non-Filer: 30,000 + 20%
Above 2,000,000
Filer: 155,000 + 25%
Non-Filer: 310,000 + 50%
🏢 Company Rates
On Active Taxpayer List 15% Flat
Not on ATL 30% Flat
💡 Key Points
  • Tax deducted by tenant at source
  • Deposit by 15th of next month
  • No tax if ≤ Rs. 300,000/year
  • Use Challan 2806 for payment
  • Non-filers pay double rate
Rent Tax Calculator - 2025-26
💰 Rent Amount
Monthly Rent
Annual Rent
Rs.
Rs. 0
👤 Taxpayer Details

📝 Who Deducts the Tax?

The tenant (person paying rent) must deduct advance tax at source under section 155 of Income Tax Ordinance 2001 and deposit it with FBR.

⏰ Payment Deadline

Tax must be deposited by the 15th of the month following the rent payment. For example, tax for January rent must be paid by February 15th.

💳 How to Pay

Use Challan 2806 for advance tax payment at any authorized bank. Tenants must file withholding statement and issue TR-6 certificate to landlord.

📄 Tax Certificate

Landlords can claim credit for advance tax deducted against their annual tax liability when filing income tax returns.

⚠️ Penalties

If tenant fails to deduct tax, they become personally liable for the tax amount plus penalties and additional taxes.

🏢 Company Rules

Companies on ATL pay 15% flat rate. Companies not on ATL pay 30% flat rate, regardless of the rent amount.

Property Rent Tax Calculator 2025-26

 

Under Income Tax Ordinance 2001 – Section 155

Rental income from property in Pakistan is taxed under Section 155 of the Income Tax Ordinance, 2001. This tax covers residential, commercial, and business properties. When rent crosses the prescribed threshold, tenants are required to deduct tax at source in accordance with FBR rules.

This Property Rent Tax Calculator helps individuals and companies calculate advance and adjustable rent tax for the selected tax year, filer status, and taxpayer type, as applicable under Pakistan’s income tax laws.

Rent Tax under Income Tax Ordinance 2001 (Section 155)

Section 155 governs tax on rental income from property in Pakistan. Under this provision:

  • Rent tax is deducted at source.
  • The tenant (the rent payer) is legally responsible for the deduction.
  • Tax deducted is deposited with the Federal Board of Revenue (FBR).
  • The deducted amount is treated as advance tax.

These rules are implemented and monitored by the FBR to ensure proper documentation, compliance, and reporting of rental income within Pakistan’s tax system.

Nature of Rent Tax – Advance & Adjustable Tax

Rent tax under Section 155 is not a final tax.

It is classified as an advance tax, which means:

  • The tax deducted appears in the landlord’s FBR tax profile.
  • It can be adjusted against the annual income tax liability.
  • Any excess tax may be refunded or carried forward.
  • Final settlement takes place at the time of filing the annual income tax return.

This calculator reflects the adjustable nature of the rent tax, helping taxpayers avoid miscalculations and unnecessary overpayments.

How Rent Tax Is Calculated (Filer, Non-Filer & Company Rules)

Rent tax calculation depends on:

  • Annual rental income
  • Taxpayer type (individual or company)
  • Filer or non-filer status (ATL)

Key points:

  • Rental income up to Rs. 300,000 per year is exempt.
  • Filers pay lower withholding tax rates.
  • Non-filers pay significantly higher tax.
  • Companies are taxed at flat rates, regardless of the rent amount.

All applicable rules, slabs, and rate differences are already incorporated into this calculator to ensure accurate results without manual effort.

Who Deducts Rent Tax and Who Is Liable?

According to the law:

  • The tenant paying rent must deduct tax.
  • Deduction applies when the tenant is a prescribed person.
  • Companies, government bodies, registered firms, and organizations fall under prescribed persons.

If the tenant fails to deduct tax:

  • They become personally liable.
  • Penalties and additional tax may apply.

Proper deduction protects both the tenant and the landlord from legal consequences.

Payment, Deposit & Adjustment of Rent Tax

Once the property rent tax under Section 155 is deducted:

  • It must be deposited by the 15th of the following month.
  • Tax is deposited as advance tax.
  • Monthly withholding statements must be filed with FBR.

Late payment or non-compliance may result in:

  • Default surcharge
  • Penalties
  • Disallowance of expense (for businesses)

Download Your Rent Tax Calculation

After using this calculator, you can:

  • Download your rent tax calculation.
  • Keep it for personal or business records.
  • Share it with tax consultants or tenants.
  • Use it as supporting evidence during tax filing.

This feature enhances transparency and supports better compliance and tax planning.

Related Tax Tools

If you are managing multiple income sources, you may also find the Pakistan Pension Calculator useful for estimating pension-related income and taxes under applicable rules:

Disclaimer: This calculator provides an estimated calculation based on Section 155 of the Income Tax Ordinance, 2001. Actual tax liability may vary depending on FBR notifications and individual circumstances.

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Rent Tax Frequently Asked Questions

1. Who deducts advance tax on rent?

The tenant (person paying rent) must deduct tax at source under section 155 and deposit it with FBR by the 15th of the following month.

2. What if the annual rent is less than Rs. 300,000?

No tax is deductible if the annual rent is Rs. 300,000 or less, regardless of filer status.

3. What is the difference between filer and non-filer rates?

Non-filers pay double the tax rate compared to filers. For example, in the Rs. 600,001-2,000,000 slab, filers pay 10% while non-filers pay 20%.

4. How is tax calculated for companies?

Companies pay a flat 15% if on Active Taxpayer List (ATL) or 30% if not on ATL, regardless of the rent amount.

5. Can the landlord claim credit for this tax?

Yes, the advance tax deducted can be claimed as credit against the landlord's final tax liability when filing annual tax returns.

6. What happens if tenant doesn't deduct tax?

The tenant becomes personally liable for the tax amount and may face penalties, additional taxes, and legal action.