Informative Property Tax Details in Pakistan

Like any other country of the World, Pakistan also has property related laws. The taxes are charged based on these laws. Furthermore, in Pakistan, the government charges annual taxes by the owners of that property based size and structure of that house. Moreover, the tax is levied based on the nature of the property. The property can be moveable as well as immovable. However, in this blog, we will discuss in detail property tax in Pakistan and following things shall be discussed:

  • Rate of tax
  • Procedure of assessment
  • Time and mode
  • Rebate and surcharge, and
  • Exemptions

Rate of Tax

The first question that arises in every rational mind before or after purchasing property is that what is the rate of tax? Under the provisions of Land Revenue Act, 1967 the property tax is charged on annual basis. Moreover, the tax is calculated on basis of the annual value of the building and land located in the rating area. Likewise, it is levied at the rate of 5% of the annual value at which the property may be let out from year to year basis.

Procedure of assessment

There are different yardsticks for assessing the rate of property tax in Pakistan. Following are the procedures adopted by the government:

  • Nature of occupation (rented or self)
  • Type of building
  • Nature of use (residential or commercial)

Time and Mode of tax charged

In Pakistan, the property tax may be deposited on or before 30th September with 5 percent rebate of tax for a year. Furthermore, the taxpayer is bound to pay the tax within 30 days of notice. Similarly, the tax shall be deposited in National Bank of Pakistan in the form of a cheque in favor of the Excise and Taxation Officer of the District concerned.

Rebate and Surcharge

Rebate is a term used for return or refund. So, a person who has paid too much in term of taxes is obliged by the refund. In Pakistan, a rebate of 5% of the amount of annual tax for the financial year is allowed if the amount of tax is paid in lump sum or before the deadline. However, if a person fails to comply than another one percent shall be charged on first of every month.


There are certain exemptions that are provided to different people in Pakistan. Furthermore, there are certain categories that provide tax exemptions. These exemptions by the government are as follow.


Sr. No.

Exemptions to persons


Residential houses that are constructed on less than 5 Marla are exempted from taxes.


A single house not commanding annual rent exceeding Rs. 6480/- if occupied by the owner for his own residence. But if the house is given on lease than the tax would be different.


The buildings and houses owned by widows, minor, orphan and disabled person (whose tax liability is up to Rs. 12150/-) are exempted of all kinds of taxes. This is to compensate for the poor’s of society.


Residential house of up to 1 Kanal if owned by federal or provincial retired government employees are exempted. However, this is to cater to government employees.


Mosques, public parks, libraries, and hospitals are also exempted of tax by the government under the Land Revenue Act, 1967. Moreover, land sanctioned to these places will also be exempted from tax.


Lastly, the properties the rent of which are given to religious or proscribed charitable institutes are also exempted. 


This blog is written exclusively to guide and give awareness to our valued customers about property tax in Pakistan. Zameenforyou is a platform where you will find information of every kind. What matter most for us are our customers. Thus, keep visiting and following us.