This tool Rental Income Tax Calculator is designed to simplify the complex withholding tax (WHT) calculations required under Section 155 of the Income Tax Ordinance, 2001. It provides an instant breakdown of tax liabilities for Individuals and Associations of Persons (AOPs) based on the latest 2025-26 Federal Budget slabs.
Key Features
- Automatic Slab Detection: The tool identifies which of the four FBR tax brackets your annual income falls into and highlights it for transparency.
- Real-Time Calculations: As you enter your monthly rent, the tool instantly computes your Yearly Gross Rent, Monthly Tax Deduction, and Total Annual Tax.
- WHT Accuracy: It uses the specific progressive logic (Fixed amount + Percentage of excess) mandated by the Federal Board of Revenue.
FBR Tax Slabs Applied (2025-26)
The calculator applies the official FBR progressive income tax structure for the tax year 2025–26. It calculates tax using slab-based rates rather than a flat percentage. The system divides your taxable income into defined slabs and applies the correct tax rate to each portion.
Lower-income segments receive lower tax rates, while higher-income portions attract progressively higher rates. The calculator processes each slab step by step, ensuring the final tax amount matches FBR regulations exactly.
By following this method, the calculator helps users:
- Calculate tax accurately
- Understand how progressive taxation works
- Estimate take-home income with confidence
This slab-wise approach ensures transparency, accuracy, and full compliance with FBR tax rules.
| Annual Gross Rent (PKR) | Income Tax Rate |
| Up to 300,000 | 0% (Tax Free) |
| 300,001 to 600,000 | 5% of the amount exceeding 300k |
| 600,001 to 2,000,000 | Rs. 15,000 + 10% of the amount exceeding 600k |
| Above 2,000,000 | Rs. 155,000 + 25% of the amount exceeding 2M |
Who Should Use This?
- Tenants: To know exactly how much tax to deduct before paying rent to a landlord.
- Landlords: To estimate their net “take-home” income after mandatory tax withholdings.
- Property Managers: To maintain accurate financial records for commercial or residential portfolios.
Rental Income Tax Calculator
FBR Section 155 – Income from Property