Section 155 withholding tax calculator
Some tenants must deduct income tax from the rent they pay and deposit it with the FBR, under section 155 of the Income Tax Ordinance 2001. Enter the rent and who the landlord and tenant are, and the calculator shows how much is deducted over the year and how it was worked out.
Last reviewed:
Withholding only. Tax deducted under section 155 counts towards your final income tax; it is not your final tax, and this calculator does not estimate it. Rates from the FBR Withholding Tax Rate Card for tax year 2027 (1 July 2026 to 30 June 2027). Not tax advice.
Result
The tenant deducts Rs 75,000 over the year: 6.25% of the gross rent. It counts towards your final tax; it is not your final tax.
- Tax deducted over the year
- Rs 75,000
- As a share of the gross rent
- 6.25%
- Even spread per month (an assumption)
- Rs 6,250
- Gross rent for the year
- Rs 1,200,000
How this was worked out
- The gross rent for the year is 100,000 × 12 = 1,200,000.
- Rs 1,200,000 is over Rs 600,000 and does not exceed Rs 2,000,000, so the band is Rs 15,000 plus 10% of the amount over Rs 600,000.
- 1,200,000 − 600,000 = 600,000; 10% × 600,000 = 60,000; 15,000 + 60,000 = 75,000.
- As a share of the gross rent: 75,000 ÷ 1,200,000 = 6.25%.
- Spread evenly over twelve months: 75,000 ÷ 12 ≈ 6,250 a month.
- Tax deducted under section 155 is adjustable: it counts towards your final income tax for the year. It is not your final tax, and this calculator does not estimate your final tax. Not tax advice.
- The law states the bands on a year's gross rent. We found no official rule on spreading them over monthly payments, a part year or a mid-year change of rent, so the monthly figure is only the year's figure divided by 12.
- Who must deduct comes from the FBR's published guidance (2013 and 2018); we have not seen the 2026 text of the law itself.
The rates, worked out
Tax deducted over a year at these gross rents, for each kind of landlord, from the FBR rate card for tax year 2027.
| Gross rent a year | Individual or AOP, on the ATL | Individual or AOP, not on the ATL | Company, on the ATL | Company, not on the ATL |
|---|---|---|---|---|
| Rs 240,000 | Rs 0 | Rs 0 | Rs 36,000 | Rs 72,000 |
| Rs 300,000 | Rs 0 | Rs 0 | Rs 45,000 | Rs 90,000 |
| Rs 360,000 | Rs 3,000 | Rs 6,000 | Rs 54,000 | Rs 108,000 |
| Rs 600,000 | Rs 15,000 | Rs 30,000 | Rs 90,000 | Rs 180,000 |
| Rs 1,200,000 | Rs 75,000 | Rs 150,000 | Rs 180,000 | Rs 360,000 |
| Rs 1,500,000 | Rs 105,000 | Rs 210,000 | Rs 225,000 | Rs 450,000 |
| Rs 2,000,000 | Rs 155,000 | Rs 310,000 | Rs 300,000 | Rs 600,000 |
| Rs 3,000,000 | Rs 405,000 | Rs 810,000 | Rs 450,000 | Rs 900,000 |
| Rs 6,000,000 | Rs 1,155,000 | Rs 2,310,000 | Rs 900,000 | Rs 1,800,000 |
How the calculator works
The tax is worked out on the gross rent for the year: the rent plus any charge for furniture, fixtures or services connected with the property. A monthly rent is multiplied by 12.
For a landlord who is an individual or an association of persons (AOP), the FBR rate card for tax year 2027 sets these bands on the gross annual rent:
| Gross rent for the year | Landlord on the ATL | Landlord not on the ATL |
|---|---|---|
| up to Rs 300,000 | nil | nil |
| over Rs 300,000, up to Rs 600,000 | 5% of the amount over Rs 300,000 | 10% of the amount over Rs 300,000 |
| over Rs 600,000, up to Rs 2,000,000 | Rs 15,000 plus 10% of the amount over Rs 600,000 | Rs 30,000 plus 20% of the amount over Rs 600,000 |
| over Rs 2,000,000 | Rs 155,000 plus 25% of the amount over Rs 2,000,000 | Rs 310,000 plus 50% of the amount over Rs 2,000,000 |
For a landlord that is a company, the rate is 15% of the gross rent if it is on the ATL and 30% if it is not, according to the FBR’s tax year 2026 card; the excerpt of the tax year 2027 card we could read did not show the company row, and neither the FBR’s circular on the Finance Act 2026 nor the other sources we read mention a change.
The calculator works in exact figures and does not round: where a figure is not a whole number of rupees, it shows the paisa. The FBR’s card states no rounding rule. Each band includes its upper edge: a rent of exactly Rs 600,000 is in the second band.
Where the figures are less certain
- Landlords not on the ATL. The current FBR cards double the rates for an individual or AOP not on the ATL, under rule 1 of the Tenth Schedule. The FBR’s 2020 and 2021 cards said that rule did not apply to section 155, and we have not found the law that changed this. Treat that column with care, and check it with a tax adviser.
- Monthly payments. The bands are set on a year’s gross rent. We found no official rule for spreading the tax over monthly payments, a part year or a mid-year change of rent. The monthly figure the calculator shows is simply the year’s tax divided by 12.
Who has to deduct
Only a tenant who is a “prescribed person” has to deduct. The FBR’s guidance lists:
- the federal, provincial and local governments;
- companies;
- non-profit organisations and charitable institutions;
- the diplomatic missions of foreign states;
- private educational institutions, boutiques, beauty parlours, hospitals, clinics and maternity homes;
- individuals and associations of persons who pay gross rent of Rs 1.5 million or more in a year.
So a family renting a house for less than Rs 1.5 million a year does not deduct tax under section 155. We have not seen the 2026 text of the law itself, only this guidance.
Check the ATL
To check whether a person is on the FBR’s Active Taxpayers List, send a text message to 9966 with the word ATL, a space, and the 13-digit CNIC number (for a company or AOP, its 7-digit NTN instead), or search the ATL on the FBR website.
What the deduction means for you
Tax deducted under section 155 is adjustable: it counts towards your final income tax for the year, which depends on all your income and allowances. Since tax year 2022, an individual’s income from property has been taxed with the rest of their income, after deductions such as the one-fifth allowance for repairs. The guide to tax on rental income explains more. Neither this calculator nor the Maalik-e-Makaan app estimates your final tax.
This calculator gives general information, not legal or tax advice. Check the sources below, or ask a lawyer or tax adviser about your situation.
Official sources
- Withholding Tax Rate Card, Tax Year 2027, Federal Board of Revenue (accessed: )
- Withholding Tax Rate Card, Tax Year 2026, Federal Board of Revenue (accessed: )
- Brochure: collection and deduction of tax at source, Federal Board of Revenue (accessed: )
- Circular No. 2 of 2026-27 (Finance Act 2026), Federal Board of Revenue (accessed: )
- Active Taxpayers List: search, Federal Board of Revenue (accessed: )