Property owners — individuals & AOPs · FY 2026-27

Rental income tax calculator Pakistan

You are not taxed on every rupee of rent you collect. A repair allowance comes off first, and this calculator applies it before it runs the slabs.

Rent collected as
Rent is added to your other income before the slab is applied. Leave it at 0 to see rent taxed on its own.
Tax on rental incomeRs 0
Repair allowance (1/5th)Rs 0
Net taxable rentRs 0
Rent left after taxRs 0
Enter your rent to see the working.

How rental income tax is worked out

Individuals and AOPs get a flat repair allowance of one fifth (20%) of the gross rent, and nobody asks to see repair bills. What is left is added to your other taxable income, and the combined total goes through the non-salaried slabs, the same table that is on the business tax page.

Step What happens
1 Add up the rent for the year
2 Subtract the flat 20% repair allowance
3 The result is your net rental income, added to any other taxable income
4 The combined total runs through the non-salaried slabs, 0% up to 45%
5 Rent’s share of the total tax is the headline figure shown above
Property taxes have moved several times in recent Finance Acts. Section 7E, which taxed deemed rent on unused property, was withdrawn by the Finance Act 2026, and withholding on property sales and purchases (Sections 236C and 236K) was revised separately from the slab tax on actual rent. If you are buying or selling property this year, treat this page as covering rental income only.

Landlord questions

Can I deduct more than the flat 20%?

For individuals and AOPs the repair allowance is generally fixed, whatever you actually spent. A few other costs, such as provincial property tax, ground rent and insurance premiums, can sometimes be claimed separately. A tax practitioner can say what applies to your property.

Is this the official FBR rental income tax calculator Pakistan landlords use?

No. It is an independent calculator and FBR has nothing to do with it. It follows the rules FBR applies to rent for individuals and AOPs, so it is a good way to plan, but the return you file on IRIS is what counts.

Is rent from a shop or office taxed the same way?

Yes. Rent from any property you own is treated as income from property, so the repair allowance and the slabs work the same for a flat, a house, a shop or an office.

My tenant already deducts tax. Do I pay twice?

No. Some tenants, mostly companies and government bodies, have to withhold tax from the rent they pay. Whatever was withheld is credited against your final liability when you file, so subtract it from the figure shown here.

What if a company owns the property?

Companies are generally taxed on rent differently, often at a flat rate instead of the individual slabs. This calculator is built for personal and AOP ownership only.

Agar makan khud ka hai aur kiraya nahi le rahe, phir bhi tax?

Finance Act 2026 ke baad khaali ya apne istemal ki property par deemed income tax (Section 7E) khatam kar diya gaya hai. Ab sirf woh kiraya taxable hai jo aap actually wasool karte hain.