Rental Income Tax Calculator
Calculate tax on rental income from property in Pakistan.
Pakistan Rental Income Tax Calculator: Under statutory guidelines established by Federal Board of Revenue (FBR), calculate tax on rental income from property in pakistan. Calculations for July 1 – June 30 determine precise marginal brackets, statutory rate percentages, allowable deductions, and net post-tax retained amounts.
Calculator Input
Please enter valid values for all required fields
Your calculation results will appear here.
Enter your details above and click Calculate to see your estimated tax.
Results
Taxable Income
Rs 0
Rental income minus expenses
Income Tax
Rs 0
Total tax liability
Effective Rate
0%
Tax as percentage of gross
This is an estimate. Consult a tax professional for accurate calculations.
Advanced Tools & Analysis
Advanced Tools & Analysis
Marginal Tax Bracket Breakdown
How your income is distributed across tax brackets.
Tax Refund & Overpayment Estimator
Did your employer withhold too much tax during the year?
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Take this 3-second check to confirm your tax residency status.
Global Purchasing Power & Salary Parity
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Low 15% standard tax, 0% VAT/sales tax, high rental costs.
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⚖️ Side-by-Side Tax Comparison Mode
Compare two income or deduction scenarios to see exact tax savings.
Pakistan Income from Property (Section 15 FBR Slabs)
The Pakistan Rental Income Tax Calculator estimates individual, AOP, and corporate tax liability on property rentals under Section 15 of the Income Tax Ordinance, 2001. Incorporating progressive rental income slabs, 1/5th statutory building repair deductions, local property taxes paid, and filer withholding thresholds, it computes exact net rental tax.
Under Section 15 of the Income Tax Ordinance, 2001, rent derived by the owner of land or a building is categorized as 'Income from Property'. For individual landlords and Associations of Persons (AOPs), rental income is taxed under a progressive rate schedule. Taxpayers can claim statutory deductions under Section 15A—including a flat one-fifth (20%) statutory allowance for repairs, local rates and taxes paid, insurance premiums, and mortgage profit paid on construction loans.
Example Calculation
PKR 600,000 Rental Income, PKR 50,000 Expenses
Result
Net rental = PKR 550,000. Tax calculated at applicable slab.
Calculation Methodology
Rental Income Tax
Net rental income taxed at applicable slab ratesSame as normal income tax
How to Use the Pakistan Rental Income Tax Calculator
Understanding Results
Taxable Income: Income subject to tax after deductions.
Tax Amount: Total tax liability.
Effective Rate: Tax as a percentage of your total income.
Take-Home Pay: Income after tax.
Rental Income Tax Slabs Schedule
Progressive tax schedule for individuals and AOPs under Division VIA, Part I of the First Schedule:
Chargeable Rent ≤ PKR 300,000: Tax = 0% (Nil)
PKR 300,001 – PKR 600,000: 5% of the amount exceeding PKR 300,000
PKR 600,001 – PKR 1,000,000: PKR 15,000 + 10% of amount exceeding PKR 600,000
PKR 1,000,001 – PKR 2,000,000: PKR 55,000 + 15% of amount exceeding PKR 1,000,000
PKR 2,000,001 – PKR 3,000,000: PKR 205,000 + 20% of amount exceeding PKR 2,000,000
Exceeding PKR 3,000,000: PKR 405,000 + 25% of amount exceeding PKR 3,000,000
Example Calculation
Let's say you have an annual income of PKR 1,200,000.
After applying the Pakistan property tax rules and deductions, your estimated tax liability and take-home pay will be calculated automatically by the tool above. Try entering your own values to see personalized results.
Rental Income Benchmark Scenarios
Scenario A: Modest Residential Rental (PKR 30,000 / Month)
Input: Annual rental income = PKR 360,000.
Taxable Slabs: First PKR 300,000 exempt. Excess PKR 60,000 @ 5% = PKR 3,000.
Effective Rate: 0.83% of gross annual rental income.
Scenario B: Commercial Shop Rental (PKR 120,000 / Month)
Input: Annual rental income = PKR 1,440,000.
Taxable Slabs: PKR 1M to PKR 2M tier: Base PKR 55,000 + 15% of (PKR 1,440,000 - PKR 1,000,000) = PKR 55,000 + PKR 66,000 = PKR 121,000.
Effective Rate: 8.40%.
Scenario C: Commercial Plaza Investor (PKR 350,000 / Month)
Input: Annual rental income = PKR 4,200,000.
Taxable Slabs: Top tier: Base PKR 405,000 + 25% of (PKR 4,200,000 - PKR 3,000,000) = PKR 405,000 + PKR 300,000 = PKR 705,000.
Effective Rate: 16.79%.
Section 155 Withholding & Non-Adjustable Deposit
Statutory compliance obligations for landlords and corporate tenants:
- Withholding Tax by Tenant (Section 155): Corporate and registered business tenants paying rent to landlords are legally required to withhold tax at statutory Division VIA rates and issue CPR certificates.
- Unadjustable Advance (Pugree / Section 16): Any non-refundable advance received that is not adjustable against monthly rent is treated as income and apportioned equally over 10 consecutive years.
- Separate Block vs Normal Law: Individual landlords are taxed under the separate block schedule; corporations must account for rental receipts under normal corporate profits tax rules.
Tax Slabs
Pakistan Property Tax slabs vary based on income level and taxpayer profile. Use this calculator to determine your exact liability under current rules.
Common Mistakes
- Not updating inputs for the correct tax year.
- Using incorrect residency or employment status.
- Forgetting to account for all income sources.
- Not considering eligible deductions and reliefs.
Frequently Asked Questions
How is rental income taxed under Section 15 of the Income Tax Ordinance?
What is the 1/5th repair allowance deduction?
Can property taxes paid to provincial Excise be deducted from rental income?
What is Section 155 tenant withholding tax?
How is non-adjustable advance rent (Pugree) taxed?
Are joint property co-owners taxed separately on their rental share?
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Official Government Resources
Always verify tax calculations with the latest information from official government sources.
Educational Disclaimer
This calculator is provided for informational and educational purposes only. It does not constitute legal, financial, or tax advice. Tax laws are complex and subject to change. Always consult a qualified tax professional or your local tax authority for advice specific to your circumstances.
Finsiva researches tax rules and calculation parameters using official government sources and reviews financial content for accuracy, methodology, and statutory changes.