FBR Rental Income Tax Calculator 2025
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Deductions Allowed
(Some deductions are applied automatically)
Calculation Details
How It Works:
Step 1: Monthly rental income is multiplied by 12 to get the annual income.
Step 2: Automatic deductions are applied:
- Repairs: 20% of the annual income
- Admin Charges: 4% of the annual income
Step 3: Add manual deductions (Loan Interest and Local Taxes/Insurance/Ground Rent).
Step 4: Taxable Income = Annual Income – Total Deductions.
Step 5: Tax is computed based on the following slabs:
- If Taxable Income ≤ PKR 200,000: Tax = 0
- If Taxable Income is between PKR 200,001 and PKR 600,000: Tax = 5% of (Taxable Income – 200,000)
- If Taxable Income is between PKR 600,001 and PKR 1,000,000: Tax = PKR 20,000 + 10% of (Taxable Income – 600,000)
- If Taxable Income > PKR 1,000,000: Tax = PKR 60,000 + 15% of (Taxable Income – 1,000,000)
The calculator displays each step so you can see exactly how your tax liability is determined.
Frequently Asked Questions
What is the FBR Rental Income Tax Calculator?
This is a free tool designed to calculate your rental income tax liability in Pakistan for 2025 based on Federal Board of Revenue (FBR) rules. It factors in your monthly rental income and allowable deductions.
What deductions are automatically applied?
The calculator automatically applies a 20% deduction for repairs and a 4% deduction for administrative charges based on your annual rental income.
How is the tax calculated?
Tax is calculated based on taxable income (annual income minus deductions) using FBR tax slabs: 0% for ≤ PKR 200,000, 5% for PKR 200,001–600,000, and higher rates for income above PKR 600,000.
Can I include loan interest as a deduction?
Yes, you can manually input loan interest and local taxes/insurance/ground rent as additional deductions to reduce your taxable income.