Tax year 2027 (2026-27)
Tax on rental income (155) Pakistan 2026-27
Rent received by an individual or AOP is taxed on the gross annual rent: nothing up to Rs 300,000, then 5%, 10% and 25% slabs. Rs 100,000 a month (Rs 1.2 million a year) means Rs 75,000 a year.
Rs
Tax on the year’s rent
Rs 75,000
effective 6.25%
Per month
Rs 6,250
Annual rent
Rs 1,200,000
Individual and AOP landlords, tax years 2026 and 2027
| Up to Rs 300,000 | Nil |
|---|---|
| Rs 300,000 – 600,000 | 5% of the amount over Rs 300,000 |
| Rs 600,000 – 2,000,000 | Rs 15,000 + 10% of the amount over Rs 600,000 |
| Above Rs 2,000,000 | Rs 155,000 + 25% of the amount over Rs 2,000,000 |
A company landlord: 15% (30% non-filer). FBR’s card shows a single rate for individual landlords.
Source
Section 155; First Schedule Part III Division V
- FBR Withholding Tax Rate Card, tax year 2027 (updated up to 30 June 2026, Finance Act 2026) · last checked 4 November 2026
- FBR Withholding Tax Rate Card, tax year 2026 (updated up to 30 June 2025, Finance Act 2025) · last checked 4 November 2026
Questions people ask
Who deducts tax from rent?
Tenants named as withholding agents in section 155, such as government bodies and companies, deduct it when paying rent. Where no tax is deducted, the landlord still owes tax on the rent at these slabs when filing.
Rent under Rs 300,000 a year?
No tax.
Want a tax consultant to check your case?
Filing a return, becoming a filer, a notice from FBR, or a property or freelance question. Send a short request; asking is free and you decide whether to go ahead.
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