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Rental Income Tax Calculator Pakistan 2026-27

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If you rent out a house, flat, shop or office as an individual or an AOP, enter the rent you receive to see the tax under section 155. Tick the box if the owner is not on the Active Taxpayer List: non-filers pay double.

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Rental income tax rates (individuals and AOPs): 2026-27 (tax year 2027)

Annual rentTax
Up to Rs 300,0000%
Rs 300,001 – Rs 600,0005% of the amount above Rs 300,000
Rs 600,001 – Rs 2,000,000Rs 15,000 + 10% of the amount above Rs 600,000
Above Rs 2,000,000Rs 155,000 + 25% of the amount above Rs 2,000,000

Section 155, First Schedule Part III Division V; non-filers pay double.

Earlier tax years

2025-26 (tax year 2026)

Annual rentTax
Up to Rs 300,0000%
Rs 300,001 – Rs 600,0005% of the amount above Rs 300,000
Rs 600,001 – Rs 2,000,000Rs 15,000 + 10% of the amount above Rs 600,000
Above Rs 2,000,000Rs 155,000 + 25% of the amount above Rs 2,000,000

Section 155, First Schedule Part III Division V; non-filers pay double.

2024-25 (tax year 2025)

Annual rentTax
Up to Rs 300,0000%
Rs 300,001 – Rs 600,0005% of the amount above Rs 300,000
Rs 600,001 – Rs 2,000,000Rs 15,000 + 10% of the amount above Rs 600,000
Above Rs 2,000,000Rs 155,000 + 25% of the amount above Rs 2,000,000

Section 155, First Schedule Part III Division V; non-filers pay double.

2023-24 (tax year 2024)

Annual rentTax
Up to Rs 300,0000%
Rs 300,001 – Rs 600,0005% of the amount above Rs 300,000
Rs 600,001 – Rs 2,000,000Rs 15,000 + 10% of the amount above Rs 600,000
Above Rs 2,000,000Rs 155,000 + 25% of the amount above Rs 2,000,000

Section 155, First Schedule Part III Division V; non-filers pay double.

2022-23 (tax year 2023)

Annual rentTax
Up to Rs 300,0000%
Rs 300,001 – Rs 600,0005% of the amount above Rs 300,000
Rs 600,001 – Rs 2,000,000Rs 15,000 + 10% of the amount above Rs 600,000
Above Rs 2,000,000Rs 155,000 + 25% of the amount above Rs 2,000,000

Section 155, First Schedule Part III Division V; non-filers pay double.

Rental income tax questions

How is rental income taxed in Pakistan?

Individuals and AOPs pay tax on the rent they receive under a separate table: nothing on the first Rs 300,000 a year, 5% up to Rs 600,000, 10% up to Rs 2 million, and 25% above Rs 2 million.

Do non-filers pay more tax on rent?

Yes. If the owner is not on the Active Taxpayer List, the tax is doubled. Filing your return and appearing on the list halves the tax on the same rent.

Who deducts the tax on rent?

When the tenant is a company, a government body or certain other organisations, the tenant must deduct the tax when paying the rent and give you a certificate. Otherwise you pay it yourself and report the rent in your return.

Have the rates changed recently?

No. The rates for individuals and AOPs have been the same from 2022-23 to 2026-27. Companies are taxed differently and are not covered by this calculator.

Questions about this? Talk to a KLA advisor.

Book a consultationWhatsApp +92 300 8980101