Tax Calculator Pakistan – Income & Salary Tax: Rent WHT Calculator Pakistan 2026-27

Rent WHT Calculator Pakistan 2026-27 – Section 155

Calculate rent withholding tax in Pakistan for Tax Year 2027 using our Rent WHT Calculator. Estimate the tax deduction on rental income for individuals, Associations of Persons (AOPs), and companies. The calculator helps landlords and tenants estimate annual withholding tax using the applicable rates under Section 155 of the Income Tax Ordinance, 2001, as amended by the Finance Act 2026.

For Tax Year 2027, the tax year runs from 1 July 2026 to 30 June 2027.

What Is Rent Withholding Tax in Pakistan?

Rent withholding tax is tax deducted from rent payments for immovable property under Section 155 of Pakistan's Income Tax Ordinance, 2001. Depending on the type of landlord, rental amount, and Active Taxpayer List (ATL) status, the payer may be required to deduct tax when paying rent.

The rules differ for individuals and AOPs compared with companies. For individuals and AOPs, the withholding amount is calculated using annual rental-income slabs. For companies, the applicable rate is generally a percentage of gross rent.

The deduction is not automatically the landlord's final annual income-tax liability. The final treatment depends on the applicable tax rules and the landlord's overall tax position. The Federal Board of Revenue (FBR) publishes the official withholding tax rate card for Tax Year 2027.

Rent Withholding Tax Rates in Pakistan 2026-27

The following rates apply to rent of immovable property under Section 155 for Tax Year 2027. The non-ATL rates for individuals and AOPs are generally double the corresponding ATL withholding rates.

1. Rent WHT Rates for Individuals and AOPs

Gross annual rent	ATL withholding tax
Up to Rs. 300,000	Nil
Rs. 300,001–600,000	5% of amount exceeding Rs. 300,000
Rs. 600,001–2,000,000	Rs. 15,000 + 10% of amount exceeding Rs. 600,000
Above Rs. 2,000,000	Rs. 155,000 + 25% of amount exceeding Rs. 2,000,000

For a landlord who is not on the Active Taxpayer List, the applicable withholding rate is generally increased by 100% under the relevant provisions of the Tenth Schedule.

Gross annual rent	Non-ATL withholding tax
Up to Rs. 300,000	Nil
Rs. 300,001–600,000	10% of amount exceeding Rs. 300,000
Rs. 600,001–2,000,000	Rs. 30,000 + 20% of amount exceeding Rs. 600,000
Above Rs. 2,000,000	Rs. 310,000 + 50% of amount exceeding Rs. 2,000,000

These non-ATL figures represent the withholding deduction, not necessarily the landlord's final tax liability.

2. Rent WHT Rates for Companies

Landlord type	ATL rate	Non-ATL rate
Company	15% of gross rent	30% of gross rent

For example, if a company receives gross annual rent of Rs. 1,200,000, the estimated withholding tax is Rs. 180,000 at 15% or Rs. 360,000 at 30%, depending on its ATL status and the applicable rules.

Important: Always verify the taxpayer category, current ATL status, applicable exemptions, and the official rate card before making a deduction.

How to Calculate Rent Withholding Tax

For an individual or AOP on the ATL, the calculation depends on the annual rent slab.

For annual rent between Rs. 600,000 and Rs. 2,000,000:

Rent WHT = Rs. 15,000 + 10% × (Annual rent − Rs. 600,000)

For annual rent above Rs. 2,000,000:

Rent WHT = Rs. 155,000 + 25% × (Annual rent − Rs. 2,000,000)

For a company:

Rent WHT = Gross rent × Applicable withholding tax rate

The calculation should use the gross rental amount relevant under Section 155. Depending on the arrangement, gross rent can include amounts covered by the law beyond the basic monthly property rent.

Rent WHT Calculator Examples

Example 1: Annual Rent of Rs. 600,000

Suppose an individual landlord receives Rs. 50,000 per month.

• Monthly rent: Rs. 50,000

• Annual rent: Rs. 600,000

• ATL withholding: 5% of Rs. 300,000

• Estimated annual withholding: Rs. 15,000

If the landlord is not on the ATL, the applicable withholding may be Rs. 30,000.

Example 2: Annual Rent of Rs. 1,200,000

Suppose the annual rent is Rs. 1,200,000.

• Fixed amount: Rs. 15,000

• Amount exceeding Rs. 600,000: Rs. 600,000

• Tax on excess: 10% × Rs. 600,000 = Rs. 60,000

• Estimated ATL withholding: Rs. 75,000

• Estimated non-ATL withholding: Rs. 150,000

These figures illustrate the withholding calculation for an individual or AOP and assume the applicable rules and rates shown above.

Example 3: Annual Rent of Rs. 2,400,000

Suppose an individual or AOP receives Rs. 2,400,000 in gross annual rent.

• Fixed amount: Rs. 155,000

• Amount exceeding Rs. 2,000,000: Rs. 400,000

• Tax on excess: 25% × Rs. 400,000 = Rs. 100,000

• Estimated ATL withholding: Rs. 255,000

• Estimated non-ATL withholding: Rs. 510,000

The non-ATL amount is an illustration of the increased deduction at source, not a determination of final annual tax payable.

Who Is Required to Deduct Rent Withholding Tax?

Section 155 identifies the persons required to deduct withholding tax on qualifying rent payments. These include specified government bodies, companies, certain nonprofit organizations and institutions, diplomatic missions, and specified businesses or other persons covered by the law.

The law also covers certain individual or AOP rent payers when their annual gross rent payments reach the prescribed threshold, including the Rs. 1.5 million threshold stated in Section 155. Other notified persons may also be covered.

This means that not every tenant is automatically required to deduct rent WHT in every situation. The tenant's legal category, the annual rental amount, and the applicable statutory conditions must be checked before a deduction is made.

How to Use the Rent WHT Calculator

Follow these steps to estimate rent withholding tax:

1. Enter the monthly or annual gross rent amount.

2. Select the landlord type: individual, AOP, or company.

3. Select the landlord's ATL status.

4. Enter the relevant rental period if the property was rented for only part of the year.

5. Click Calculate to view the estimated withholding tax.

6. Review the estimated annual tax and, where supported, the equivalent monthly deduction.

The result is an estimate based on the information entered. Check the applicable tax rules and any relevant exceptions before using the figure for a formal tax deduction or filing.

Rent WHT vs. Rental Income Tax

Rent withholding tax and the landlord's final annual income-tax liability are not always the same thing.

• Rent withholding tax: The amount deducted from qualifying rent payments under Section 155.

• Rental income tax: The landlord's overall tax treatment for the tax year, based on the applicable law and circumstances.

• ATL status: Can affect the amount deducted at source.

• Final tax treatment: Must be determined under the relevant provisions; do not assume every Section 155 deduction is automatically the final tax.

A landlord should retain rent agreements, payment records, and withholding certificates or evidence of deductions to support tax reporting and reconciliation.

Who Should Use a Rent WHT Calculator?

Our Rent WHT Calculator Pakistan 2026-27 can help:

• Property owners receiving rent from residential or commercial property.

• Landlords who want to estimate withholding tax on rent.

• Tenants and organizations that may be required to deduct tax.

• Companies paying rent for offices, shops, warehouses, or other premises.

• Accountants and tax professionals preparing rent payment calculations.

• Individuals and AOPs checking the difference between ATL and non-ATL withholding.

Frequently Asked Questions

1. What is the rent withholding tax rate in Pakistan for 2026-27?

For individuals and AOPs, the ATL withholding rates range from nil to a top slab calculation of Rs. 155,000 plus 25% of annual rent above Rs. 2 million. The applicable non-ATL withholding is generally increased by 100%. For companies, the general rates are 15% for ATL and 30% for non-ATL, subject to the applicable law.

2. Is rent up to Rs. 300,000 tax-free?

Under the Section 155 withholding slab for individuals and AOPs, gross annual rent up to Rs. 300,000 carries nil withholding under the rate table. This should not be interpreted as a blanket exemption from every tax or reporting obligation.

3. How much withholding tax applies to annual rent of Rs. 1,200,000?

For an individual or AOP on the ATL, the estimated withholding is Rs. 75,000. The corresponding non-ATL withholding estimate is Rs. 150,000, subject to the applicable rules.

4. Do companies pay rent withholding tax?

Yes. The general Section 155 withholding rate for a company landlord is 15% of gross rent for ATL cases and 30% for non-ATL cases, subject to applicable legal conditions.

5. Does every tenant have to deduct tax from rent?

No. Section 155 identifies prescribed persons required to deduct tax. The payer's category, annual rent payments, and any applicable notification or statutory condition should be checked.

6. Is rent WHT the landlord's final tax?

Not necessarily. Withholding is a deduction at source, and its treatment depends on the relevant tax provisions. The landlord's final annual tax position may differ.

7. Which tax year does this calculator cover?

This calculator covers Tax Year 2027, corresponding to Pakistan's financial year from 1 July 2026 to 30 June 2027.

8. Where can I verify the official rent withholding tax rates?

Consult the FBR's official Withholding Tax Rate Card for Tax Year 2027, updated under the Finance Act 2026, and the relevant provisions of the Income Tax Ordinance, 2001.

Conclusion

The Rent WHT Calculator Pakistan 2026-27 helps estimate withholding tax on rental income under Section 155. Enter the gross rent, landlord category, and ATL status to calculate an estimate using the relevant annual slabs or company rates.

For accurate compliance, confirm that the payer is legally required to deduct tax, verify the current FBR rate card, and distinguish withholding tax from the landlord's final annual tax liability.

Official Sources

• FBR Withholding Tax Rate Cards: https://www.fbr.gov.pk/withholding-taxes-rate-card/174298/174301

• FBR – Withholding Taxes Overview: https://fbr.gov.pk/dg-withholding-taxes/174298/174299

• FBR – Income Tax Ordinance, 2001: https://www.fbr.gov.pk/Categ/Income-Tax-Ordinance/326/1000

Last updated: October 2026
Applicable period: Tax Year 2027 / FY 2026-27
Legal reference: Section 155, Income Tax Ordinance, 2001, read with the relevant provisions of the Tenth Schedule.