Is rental income taxable in Pakistan?

Yes. Rent you receive from property — residential or commercial — is taxable income and must be declared in your annual income tax return. Tax may already have been withheld on the rent, which counts toward your liability when you file.

How is tax on rental income calculated?

Income from property is included in your taxable income and taxed under the applicable schedule for the tax year, with certain deductions against rent allowable. The exact rate structure and allowable deductions are set by the Finance Act, so check the current rules — you can estimate a combined figure using our calculator.

Do I declare rental income separately or with my other income?

With everything else. Rental income goes into the same annual return as your salary, business, or freelance income. The property is also an asset on your wealth statement, and the rent is an inflow, so declaring it keeps your wealth statement reconciled.

What if tax was already deducted on my rent?

Tax withheld on your rent counts as tax already paid. When you file and declare the rental income, that withheld amount is credited against your total liability — and if more was withheld than you owe, declaring it is how you claim the refund.

For landlords

Rental Income Tax in Pakistan

Renting out a house, flat, shop, or office? That rent is taxable income — here is how it fits into your return and how to estimate the tax.

If you receive rent from property in Pakistan — residential or commercial — that rent is taxable income and belongs in your annual return. Tenants and withholding agents may already deduct tax on the rent they pay you; that deducted amount counts toward your liability, and declaring the income properly is how you reconcile it (and claim a refund if too much was withheld).

How rental income is taxed

Income from property is included in your taxable income and taxed under the applicable schedule for the year. The precise mechanics — the rate structure for property income and which deductions against rent are allowable — are set by the Finance Act, so check the current rules for your tax year. In the tax calculator you can add a Property rent line alongside your other income to see a combined estimate.

File it with everything else

Rental income does not live in its own silo — it goes into the same return as your salary, business, or freelance income, and it also needs to reconcile with your wealth statement (the property itself is an asset, and the rent is an inflow). If your assets grow without matching declared income, the FBR can question it, so declaring the rent keeps your wealth statement clean.

Estimate your income tax

Add each source of income — we total your tax, refund, or amount payable.

Tax year

Income source

Annual amount

Tax already deducted

Add an income amount above to see your estimate.

Frequently asked questions

Is rental income taxable in Pakistan?: Yes. Rent you receive from property — residential or commercial — is taxable income and must be declared in your annual income tax return. Tax may already have been withheld on the rent, which counts toward your liability when you file.
How is tax on rental income calculated?: Income from property is included in your taxable income and taxed under the applicable schedule for the tax year, with certain deductions against rent allowable. The exact rate structure and allowable deductions are set by the Finance Act, so check the current rules — you can estimate a combined figure using our calculator.
Do I declare rental income separately or with my other income?: With everything else. Rental income goes into the same annual return as your salary, business, or freelance income. The property is also an asset on your wealth statement, and the rent is an inflow, so declaring it keeps your wealth statement reconciled.
What if tax was already deducted on my rent?: Tax withheld on your rent counts as tax already paid. When you file and declare the rental income, that withheld amount is credited against your total liability — and if more was withheld than you owe, declaring it is how you claim the refund.

Now prepare your full return

Bring your documents, income, and wealth statement together into one filing-ready summary.

Get started free

Encrypted & private · Not affiliated with FBR · Estimates only

Estimates and general information only — not tax, legal, or financial advice. Filer.pk is not affiliated with, endorsed by, or operated by the FBR, and does not file your return on IRIS. Verify with FBR/IRIS or a qualified professional before filing.