Current Property Tax Rates in Pakistan: 2024-2025 Edition

If you’re planning to buy, sell, or just hold onto some real estate in Pakistan, you’re probably wondering what’s going on with property taxes.

The good news is that we’ve broken it down for you in super simple terms, without the confusing jargon. Whether you’re in Karachi, Lahore, Islamabad, or anywhere else, here’s what you need to know about the current property tax rate in Pakistan right now.

Confused about filing property tax returns?

Let the experts at Waystax.com handle it for you. Fast, secure, and 100% compliant.

File your taxes today with Waystax.com

Understanding Property Taxes in Pakistan

Property tax is what the government charges you for owning, selling, or buying real estate. The taxes vary depending on whether you’re a filer, the type of property, and where it’s located.

Types of Taxes for Property Owners in Pakistan

As a property owner, here are the key taxes you should be aware of:

Capital Value Tax (CVT)

This is a one-time tax paid when buying property. It’s based on the market value and may soon be reduced or removed in some areas (like Islamabad) to boost real estate activity.

Deemed Rental Income Tax (Section 7E)

This applies even if you don’t rent out your property. The government assumes a rental value and taxes it at a fixed rate (typically 1% of fair market value), but some exemptions apply for personal use homes or small properties.

Rental Income Tax

If you’re earning rent, you will pay tax on rental income. Filers usually pay a lower percentage, while non-filers face steeper rates.

Urban Immovable Property Tax (UIPT)

Collected by provincial governments, this applies to properties in city areas. Rates differ from city to city.

Agricultural Property Tax & Income Tax

Landowners pay based on the size and use of agricultural land. Income tax from agriculture is taxed differently, depending on the province.

Current Property Tax Rates in Pakistan in 2025

Property Tax Rate FBR

Let’s start with the big guys, FBR property tax rates. The Federal Board of Revenue (FBR) has been making moves to encourage people to file their taxes and penalize those who don’t.

So now, if you are on the Active Taxpayer List (ATL), you will pay less. If you are not, unfortunately, you will have to pay more

Here is a quick look at the property tax rate FBR is applying:

Selling Property (Section 236C)

Up to Rs. 50 million: 3% for filers, 6% for late filers, 10% for non-filers
Rs. 50–100 million: 3.5%, 7%, 10%
Over Rs. 100 million: 4%, 8%, 10%

Buying Property (Section 236K)

Up to Rs. 50 million: 3%, 6%, 13%
Rs. 50–100 million: 3.5%, 7%, 16%
Over Rs. 100 million: 4%, 8%, 20%

There’s also a flat 15% Capital Gains Tax(CGT) for filers, and higher for non-filers. Plus, a 5% Federal Excise Duty on commercial properties and first-time residential buyers.

If you are thinking about the income from property tax rates in Pakistan, this is where it kicks in.

Adjustable vs Non-Adjustable Property Taxes

Understanding what taxes are refundable or credited matters.

What Are Adjustable Property Taxes?

Taxes like those under Section 236K and 236C are adjustable. You can claim them back or adjust them in your annual return if your actual liability is lower.

What Are Non-Adjustable Property Taxes?

Taxes like Federal Excise Duty (5% on commercial or first-owner residential properties) are non-adjustable and final.

Karachi & Sindh: Taxing Based on Where You Live

Now let’s talk about the property tax rate in Karachi and wider property tax rates in Sindh. In Karachi, and generally across Sindh, property tax depends on the type and location of your property. Rates can range anywhere between 6% to 25% of the property or rental value.

Sindh has been pulling in a lot of revenue—about PKR 20 billion in 2023—from property taxes. So yes, the government is serious about it.

Islamabad: Some Big Changes Coming

Over in the capital, property tax rates in Islamabad are also evolving. The CDA property tax rates are part of a new wave of reforms.

The government is thinking about ditching the Capital Value Tax (CVT) or at least lowering it to give the real estate market a bit of a boost.

They’re also moving towards self-assessment and taxing based on the property’s capital value rather than rental value. Sounds complicated? It’s actually meant to make life easier for taxpayers.

Khyber Pakhtunkhwa (KPK): Good News for Businesses

If you own property in KPK, there’s some relief. The property tax rates in KPK have been cut, especially for commercial properties.

The tax was 16% of the rent, now it’s 10%. Factory owners also got a break—now paying PKR 10,000 per canal instead of 13,600. That’s a win for anyone dealing with industrial property tax rates.

Health businesses are now taxed at just 5%, and local council taxes dropped to 1%. Nice!

Lahore & Punjab: New System in Town

Lahore is shaking things up. The city has moved from rental-based to capital-value-based taxation starting January 2025.

This means the excise and taxation of Punjab property tax rates and the Punjab government property tax rates are now focused on what your property is actually worth, not how much you’re earning from it.

If you’re a new taxpayer in Punjab, there’s a bonus: you only need to pay 25% of your total tax for the first six months and get 50% off on any old dues. Sweet deal!

The FBR property tax rates in Lahore are synced with the federal slabs too. So whether you’re buying or selling, the same federal rules apply.

Rawalpindi Cantonment Board: A Bit Different

In Rawalpindi, the property tax rates in Rawalpindi Cantonment Board are set at 15% of the annual rental value. But here’s the twist: Cantonment Board property tax rates often come with special rebates and exemptions depending on the case. So if you qualify, you might pay less.

Need help understanding your property tax?

From FBR property tax rates to local city taxes, Waystax.com breaks it all down and files it for you—accurately and on time.

Calculate & file your property tax with Waystax.com

How to Save on Property Taxes in Pakistan

Here are a few smart ways to reduce your property tax burden:

Stay on the Active Taxpayer List (ATL) to enjoy lower rates.
If you’re a new taxpayer, use first-time registration discounts (available in Punjab).
Make use of exemptions (e.g., for personal-use properties or widows/senior citizens in some provinces).
File your tax return accurately to adjust any advance taxes paid.

Wrapping It Up

Here you have a look at property tax rates in Pakistan for 2024-2025. Whether you are in Karachi, Lahore, Islamabad, or anywhere in between, one thing is clear: tax compliance is getting more streamlined (and a little stricter).

The government is offering perks to honest taxpayers and cracking down on the rest. And with the shift to capital value assessments and digital tax filing services, the whole process is slowly getting simpler.

Got a plan to buy or sell this year? Keep these property tax rates in mind so you’re not caught off guard!

References