Property · Section 155 · Tax Year 2026-2027
Rent Withholding Tax Calculator
Calculate the withholding tax due on your rental income using the progressive property-income slabs — 0% to 25% depending on the amount.
Reference
Rent withholding tax slabs
| Annual rental income (PKR) | Base tax (PKR) | Rate |
|---|---|---|
| Rs 0 – Rs 300,000 | Rs 0 | 0% |
| Rs 300,000 – Rs 600,000 | Rs 0 | 5% |
| Rs 600,000 – Rs 2,000,000 | Rs 15,000 | 10% |
| Rs 2,000,000+ | Rs 155,000 | 25% |
Reading the result
The tenant deducts it, the landlord bears it
Section 155 puts the obligation on the person paying the rent, which surprises both sides. A company, a government office or another prescribed payer renting premises must withhold from the rent and deposit it against the landlord's account.
An individual renting a house from another individual is generally outside this. It is the status of the payer, not the size of the rent, that brings the obligation into play.
The slabs are progressive, so part-year tenancies mislead
Because the rate rises through bands, the deduction depends on annual rent. A tenancy that starts partway through the year has a lower annual figure and therefore a lower effective rate. Applying the full-year band to a six-month tenancy over-deducts.
It is not the landlord's final tax
Rental income goes into the landlord's return, where the tax is computed properly and the amount withheld is credited against it. A landlord with deductible expenses or other losses may end up owing less than was withheld, and can recover the difference — but only through a return.
Where this stops
This computes the withholding on the rent figure you enter. It does not decide whether your tenant is a prescribed withholding agent, and it does not compute the landlord's final liability.
For the landlord's own position, use the rental income tax calculator.
FAQs
Rent withholding tax FAQs
What is Section 155?
Section 155 governs withholding tax on rental income from immovable property, deducted by the tenant (if a company/notified withholder) or payable directly by individual landlords, on a progressive slab basis.
What are the rent WHT slabs?
For individuals/AOPs: 0% up to Rs 300,000/year, 5% on the next Rs 300,000, 10% up to Rs 2,000,000, and 25% above that — applied progressively, the same way income tax slabs work.
Who deducts this tax?
If your tenant is a company or another notified withholding agent, they deduct the tax before paying you rent. Individual tenants typically don't withhold — the landlord pays it directly when filing.
Is rental income tax final?
For most individual landlords, tax on rental income under these slabs is currently treated similarly to a separate block of income — confirm the current treatment (final vs normal tax regime) for your situation with a tax advisor.
Related tools
Check your annual property tax too
Rent withholding is separate from the annual property tax on the asset itself.
Open Property Tax Calculator