Pakistan Rental Income Withholding Tax Calculator

Updated Sep 2026 Used 2 times

Use the Pakistan Rental Income Withholding Tax Calculator to calculate and interpret section 155 withholding.

Who is paying the rent?

An individual/AOP payer is prescribed only when annual gross rent paid to the recipient is at least PKR 1.5 million.

Rent recipient type

Company and individual/AOP paths use different schedules.

Recipient ATL status

The non-ATL increase is modeled under the Tenth Schedule.

Rent amount basis

Monthly rent is multiplied by the number of months entered.

Regular rent amount

Include rent for the property, furniture, fixtures, amenities, and services. Add qualifying non-adjustable tenant amounts separately below.

Months paid in this tax year

Use the number of monthly payments falling in the selected tax year.

Qualifying non-adjustable tenant amount

Enter only an amount governed by section 16 for the current year. The calculator includes one-tenth; refundable or adjustable security deposits do not belong here.

Withholding payment frequency

Used only to show the average deduction per payment; annual withholding remains the controlling total.

Guest calculations stay on this device. Signed-in results sync privately.

Your result

Section 155 Rent Withholding

Enter your values, then calculate to see a verified result.

Inputs usedReview the information used for this result.

Full calculation and sourcesReview the statutory bridge, assumptions, and version.

Versioned calculationFormula v2.0.0

What is estimated

Federal withholding under section 155 on annual gross rent of immovable property.

Method

Payer identity is tested first. Regular rent is annualized, one-tenth of a qualifying section 16 amount is added, then the recipient schedule and ATL treatment are applied.

Important boundary

Deductions, co-ownership, exemptions, provincial property tax and final return treatment are not calculated.

Enter the inputsAdd the values and choose the options required for this calculation.Required fields

Run the calculationValidate the inputs and apply the versioned method.Formula v2.0.0

Review the resultRead the answer together with its context and important boundary.Result + assumptions

Interpretation

is the modeled amount for the selected path.

Confirm the result against the actual return and current official guidance.

Use this result

capital gains tax calculatorContinue with the closest related federal tax calculation.section 236c property sale tax calculatorKeep this liability separate and auditable.Pakistan Business Tax Calculator 2026-27Keep this liability separate and auditable.

Pakistan Rental Income Withholding Tax Calculator: purpose and method

Calculates section 155 withholding, section 155 annual gross rent, regular annual rent, and section 16 one-tenth inclusion from who is paying the rent?, rent recipient type, recipient ATL status, and rent amount basis with visible method, validation, precision, and limitations.

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Method and test recordFormula v2.0.0

Recorded scope: Pakistan Tax Year 2027 / FY 2026-27 calculation and content review
Publisher: CalculatorGeek
Reviewed by: CalculatorGeek Editorial Team
Recorded review date: 2026-09-20
Next source review: 2027-06-30
Definition fixtures: 8 configured scenarios
Published examples: 3 shown below

Recorded method

Primary-law mapping, FBR rate-card comparison, boundary fixtures, definition validation, and responsive browser QA.

These records describe the published model and reference tests. A test-case count is not a certification of every possible input or an independent specialist review. Editorial policy

Known limitations

The result is a payer-side section 155 deduction estimate, not the recipient's final property-income liability.
The user must correctly classify refundable/adjustable deposits; only a qualifying non-adjustable section 16 amount belongs in that field.
Deductions, co-ownership, exemptions, provincial property tax and final return treatment are not calculated.
This is an educational estimator, not an FBR assessment, tax return, legal opinion or professional tax advice.
Recheck the governing law, rates, and official guidance when the tax year or taxpayer facts change.

Method sources

Latest model update

2026-10-04 - Enforced the shared in-content contextual-link contract with valid sibling calculator destinations.

Reference inputs and expected results

These published examples are separate from the configured definition fixtures and any additional automated assertions. Expected values use the stated output units; invalid inputs are intended to be rejected.

Case	Inputs	Expected result
Individual upper second band		{"withholding_tax":15000}
Company ATL		{"withholding_tax":150000}
Company non-ATL		{"withholding_tax":300000}

Report an issue with this tool. Include the page URL, units, expected answer, and steps to reproduce. Do not include sensitive personal information.

On this page

What this calculator covers

Federal withholding under section 155 on gross rent of immovable property. The calculator first checks whether the payer is a prescribed person, then applies the Tax Year 2027 recipient schedule.

Period: Tax Year 2027 / FY 2026-27.

Selling the property instead of renting it? Use the section 236C property sale tax calculator, then calculate final gain separately with the property capital gains tax calculator.

How the result is calculated

Government, companies, NPOs, diplomatic missions, and specified institutions follow the prescribed-payer route. An individual or AOP payer enters that route only when annual gross rent paid to the recipient is at least PKR 1.5 million. Regular rent is annualized and one-tenth of a qualifying non-adjustable tenant amount is included under section 16.

Worked check: an ATL individual recipient with PKR 1.5 million annual gross rent from a prescribed payer produces PKR 105,000 withholding. The same recipient outside the ATL produces PKR 210,000.

To compare this result with another relevant method, open the Pakistan Business Tax Calculator 2026-27. Keep this liability separate and auditable.

How to use the result

Use the annual total for reconciliation and the per-payment amount for cash-flow planning. A result stating that the payer is not prescribed means no section 155 deduction obligation is modeled; it does not mean the recipient has no final income-tax liability.

Important boundaries

Deductions, co-ownership, exemptions, provincial property tax and final return treatment are not calculated.

The calculator deliberately does not infer exemptions, undocumented facts, provincial liabilities, credits, minimum-tax interactions or professional conclusions that its inputs cannot establish.

Primary sources

Prepared from the official sources listed below. Rates, prescribed-payer logic, section 16 inclusion, calculation, and content were reviewed on September 20, 2026. Recheck when the governing law changes or before Tax Year 2028.

Inputs, outputs and result meaning

Inputs

Who is paying the rent?: An individual/AOP payer is prescribed only when annual gross rent paid to the recipient is at least PKR 1.5 million. Available choices are Federal, provincial, or local government, Company, Non-profit organization, Diplomatic mission, Specified institution or organization, Individual or AOP payer, and Other payer not prescribed by section 155.
Rent recipient type: Company and individual/AOP paths use different schedules. Available choices are Individual or AOP and Company.
Recipient ATL status: The non-ATL increase is modeled under the Tenth Schedule. Available choices are Appears on ATL and Does not appear on ATL.
Rent amount basis: Monthly rent is multiplied by the number of months entered. Available choices are Monthly rent and Annual rent.
Regular rent amount: Include rent for the property, furniture, fixtures, amenities, and services. Add qualifying non-adjustable tenant amounts separately below. Supported units include Pakistani rupees (PKR). The field accepts large finite values; use a range meaningful for the real-world quantity.
Months paid in this tax year: Use the number of monthly payments falling in the selected tax year. Supported units include months. The supported range is 1 through 12.
Qualifying non-adjustable tenant amount: Enter only an amount governed by section 16 for the current year. The calculator includes one-tenth; refundable or adjustable security deposits do not belong here. Supported units include Pakistani rupees (PKR). The field accepts large finite values; use a range meaningful for the real-world quantity.
Withholding payment frequency: Used only to show the average deduction per payment; annual withholding remains the controlling total. Available choices are Monthly (12 payments), Quarterly (4 payments), and Annual (1 payment).

Outputs

Section 155 withholding: This is the primary result. The visible value is displayed without decimal places.
Section 155 annual gross rent: The visible value is displayed without decimal places.
Regular annual rent: The visible value is displayed without decimal places.
Section 16 one-tenth inclusion: The visible value is displayed without decimal places.
Average withholding per payment: The visible value is displayed without decimal places.
Net annual rent after withholding: The visible value is displayed without decimal places.
Prescribed-payer test: The visible value is displayed without decimal places.
Schedule marginal rate: It is displayed in %. The visible value uses up to 2 decimal places according to the output rule.
ATL multiplier: It is displayed in x. The visible value uses up to 2 decimal places according to the output rule.
Effective rate: It is displayed in %. The visible value uses up to 2 decimal places according to the output rule.

First establish whether the payer is prescribed by section 155. Then annualize regular rent, add one-tenth of a qualifying section 16 amount, apply the recipient schedule, and apply the non-ATL increase. Keep the result label, unit, selected mode, and stated limitations together when sharing the answer.

Frequently asked questions

Does every tenant deduct section 155 tax?

No. The payer must be a prescribed person. An individual or AOP payer enters the prescribed-person list only when annual gross rent paid to the recipient is at least PKR 1.5 million.

What belongs in annual gross rent?

Gross rent can include amounts for the property, furniture, fixtures, amenities, and services, plus the applicable one-tenth inclusion for a qualifying non-adjustable tenant amount under section 16.

Is a refundable security deposit included?

Do not put a refundable or adjustable deposit in the section 16 field. That field is only for a qualifying non-adjustable tenant amount whose characterization has been established.

Is this the landlord's final income tax?

No. It estimates payer-side withholding. The recipient's final property-income liability can differ after the complete return, deductions, exemptions, credits, and other income are considered.