RENT WITHHOLDING TAX · SECTION 155
Rental Income Tax Calculator Pakistan 2026-27
Work out withholding tax on your rent under Section 155 of the Income Tax Ordinance — for individuals, AOPs and companies, filer or non-filer.
Based on Section 155 rates for FY 2026-27. Property income only — not combined with salary.
Section 155 Rent Tax Rates — FY 2026-27
| Yearly Rent (Individual/AOP) | Filer Rate | Non-Filer Rate |
|---|---|---|
| Up to Rs. 300,000 | No tax | No tax |
| Rs. 300,001 – 600,000 | 5% above Rs. 300,000 | 10% 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 |
Company-owned property: flat 15% for filer companies, 30% for non-filer companies, applied from the first rupee of rent. Tenants must withhold tax once rent paid to a single owner reaches Rs. 1,500,000 in a year.
Sourced from Finance Act 2026
Last reviewed 22 September 2026
Reviewed by Tax Professionals
Frequently Asked Questions
What is the tax on rental income under Section 155?
Section 155 of the Income Tax Ordinance requires tenants (or their withholding agent) to deduct tax from rent paid to a property owner. For individuals and AOPs the rate is slab-based, from 0% up to 25% for filers and up to 50% for non-filers. Companies pay a flat 15% (filer) or 30% (non-filer).
How do I calculate tax on my rental income?
Add up your total rent received in the tax year, choose whether you’re an individual/AOP or a company, select your filer status, then apply the matching slab. Our calculator above does this instantly and shows the slab-by-slab breakdown.
Is rent tax different for filers and non-filers?
Yes. Non-filers pay roughly double the filer rate at every bracket. Becoming an active filer on the FBR Active Taxpayer List meaningfully lowers your withholding tax on rental income.
Where do QuickTaxPK’s tax figures come from?
All rates are based on the Income Tax Ordinance 2001 as amended by the Finance Act 2026, cross-checked against official FBR notifications. This page was last reviewed on 22 September 2026.