State television showed people pouring onto the streets around the university where Ayatollah Khamenei will begin the service, paying tribute to Rafsanjani despite their "differences".
The heavyweight politician, who died on Sunday at the age of 82, will be buried inside the crypt of Ayatollah Ruhollah Khomeini, the founder of the Islamic revolution.
Khomeini's mausoleum is in southern Tehran.
The highest ranking politicians from all factions will attend the special Islamic service.
Traffic restrictions were in place and buses and metro trains were free on the routes leading to the university of Tehran today.
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