Rental Income Tax Calculator
Enter your monthly rent and instantly see your annual tax liability. Automatically applies the 10% repair deduction allowed under Section 15A.
Include salary, business, or any other taxable income for a combined estimate.
How Rental Income is Taxed in Pakistan
Rental income is taxed under the head "Income from Property". This is a distinct category in the Income Tax Ordinance, separate from salary or business income.
The 10% Repair Deduction
Under Section 15A of the Income Tax Ordinance, you are entitled to a 1/10th (10%) deduction on the annual rent received for repairs and maintenance. The best part? You do not need to provide receipts. The deduction is automatic, whether you actually spent money on repairs or not.
How the math works
Let's say you collect ₨ 50,000 per month in rent.
Annual Rent = 50,000 × 12 = ₨ 600,000 Repair Deduction = 600,000 × 10% = ₨ 60,000 Net Taxable Rental Income = 600,000 - 60,000 = ₨ 540,000
This net amount (₨ 540,000) is then added to any other income you have (like salary), and the total is taxed under the normal FBR slabs.
FBR Tax Slabs (2025-26)
Once the repair deduction is applied, the resulting figure is taxed using the standard individual slabs. Here are the rates currently applied by the calculator:
| Annual Taxable Income | Tax Rate |
|---|---|
| Up to Rs. 600,000 | 0% (No tax) |
| Rs. 600,001 to Rs. 1,200,000 | 1% of the amount above 600,000 |
| Rs. 1,200,001 to Rs. 2,200,000 | Rs. 6,000 + 11% of the amount above 1,200,000 |
| Rs. 2,200,001 to Rs. 3,200,000 | Rs. 116,000 + 23% of the amount above 2,200,000 |
| Rs. 3,200,001 to Rs. 4,100,000 | Rs. 346,000 + 30% of the amount above 3,200,000 |
| Above Rs. 4,100,000 | Rs. 616,000 + 35% of the amount above 4,100,000 |
*Rates are subject to change by the annual Finance Act.
Do I need to declare cash rent?
Yes. Regardless of how you receive the rent — cash, bank transfer, or cheque — it is taxable income. The FBR increasingly uses data integration with property registries and utility companies to track rental properties.
What if I have multiple properties?
You should calculate the tax for each property separately to ensure you are applying the 10% deduction correctly, and then add the net taxable amounts together before applying the final slab rates. This calculator allows you to add up to five properties at once.
Frequently Asked Questions
How is rental income taxed in Pakistan?
Rental income is taxed under the head "Income from Property". After deducting 10% for repairs under Section 15A, the net amount is added to your total income and taxed at the prevailing slab rates for the fiscal year.
Is the 10% repair deduction automatic?
Yes. Under Section 15A of the Income Tax Ordinance, you are entitled to a 1/10th deduction on the annual rent received for repairs and maintenance, whether you actually spend it or not. You do not need to provide receipts for this deduction.
Can I use this calculator if I have other income?
Yes, enter your other annual income (salary, business, etc.) in the optional field to see your combined tax liability. The calculator treats all income together under the normal slab regime.
Do I need to pay tax if my tenant pays me in cash?
Yes. Regardless of how you receive the rent (cash, bank transfer, or cheque), it is taxable income. The FBR increasingly cross-references property databases with tax returns, so declaring cash rent is essential to avoid penalties.
Is my financial data sent anywhere?
No. Every calculation runs in JavaScript on your device. There is no API call and no data collection.
Review us
If this calculator has been useful, a quick review helps other people find it — and helps us know what to build next.
Related finance tools
Free, browser-based, no account required.