Rental Income Tax Calculator 2026-27
Rent is added to your other income and taxed at normal income tax rates. Deduct one-fifth of the rent for repairs. If rent is your only income, the first Rs 600,000 of taxable rent a year is tax-free.
Income Tax Ordinance sections 15, 15A and 155
01 Rates
Tax rates on rent for 2026-27
For landlords who aren't salaried, rent is taxed at these rates together with business and other income. A 10% surcharge applies above Rs 10 million.
If 75% or more of your income is salary, the lower salaried rates apply to the total instead.
| Taxable income a year | Tax |
|---|---|
| Up to Rs 600,000 | 0% |
| Rs 600,001 to Rs 1,200,000 | 15% above Rs 600,000 |
| Rs 1,200,001 to Rs 1,600,000 | Rs 90,000 + 20% above Rs 1,200,000 |
| Rs 1,600,001 to Rs 3,200,000 | Rs 170,000 + 30% above Rs 1,600,000 |
| Rs 3,200,001 to Rs 5,600,000 | Rs 650,000 + 40% above Rs 3,200,000 |
| Above Rs 5,600,000 | Rs 1,610,000 + 45% above Rs 5,600,000 |
02 Tax deducted by tenants
When your tenant deducts tax (section 155)
Companies, banks, government offices and other prescribed tenants deduct tax from rent they pay. You claim it against your income tax when you file.
| Rent a year | Filer landlord |
|---|---|
| Up to Rs 300,000 | Nil |
| Rs 300,001 to Rs 600,000 | 5% above Rs 300,000 |
| Rs 600,001 to Rs 2,000,000 | Rs 15,000 + 10% above Rs 600,000 |
| Above Rs 2,000,000 | Rs 155,000 + 25% above Rs 2,000,000 |
Non-filer landlords: double. Company landlords: 15% (30% non-filer).
How is rental income taxed in Pakistan in 2026-27?
Rent is added to your other income and taxed at the normal income tax rates for individuals. If rent is your only income, the first Rs 600,000 of taxable rent is tax-free and the rest is taxed at 15% to 45%. You can deduct a repairs allowance of one-fifth of the rent and some other costs.
How much tax on Rs 100,000 a month rent?
If it's your only income and you claim the one-fifth repairs allowance, taxable rent is Rs 960,000 and the tax is about Rs 54,000 a year.
Does my tenant deduct tax from the rent?
If the tenant is a company, bank, government office or another "prescribed person", yes, under section 155: nothing up to Rs 300,000 a year, then 5% to 25%, doubled if you are a non-filer. That tax is adjusted against your income tax when you file.
Is there a separate tax rate for rent?
Not since the Finance Act 2021, which removed the separate rent rates for individuals. Rent is now part of your total taxable income.
What can I deduct from rental income?
A repairs allowance of one-fifth of the rent, insurance on the building, local property tax, ground rent, profit on a loan or mortgage taken for the property, and collection costs up to 4% of the rent (section 15A).
Sources and last update
- Income Tax Ordinance 2001: sections 15 and 15A (income from property), 155 (tax on rent), 4AB (surcharge); First Schedule Part I Division I and Part III Division V
- FBR Withholding Tax Rates Card, updated to 30 June 2026
- Federal Board of Revenue (FBR)
Last reviewed: 7 November 2026. How we calculate
Results are estimates, not tax advice. For your exact tax, check your salary certificate or ask a tax professional.