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Property tax

Provincial Property Tax in Pakistan

Every province levies an annual Urban Immovable Property Tax on ownership, and it is entirely separate from the federal advance tax on buying and selling. Punjab moved from a percentage of annual rental value to a percentage of capital value under the Punjab Finance Act 2024, at rates between 0.07% and 0.09% with residential property up to Rs 5 million exempt. Sindh still uses annual rental value.

Where these figures come from

Statutory basis
Income Tax Ordinance, 2001, as amended by the Finance Act 2026, for tax year 2027 (1 July 2026 to 30 June 2027).
Last checked against the statute
by BarrioVibe, which files income tax returns through FBR IRIS.

These figures are an estimate computed from the rates above, not tax advice for your situation. Your return depends on facts a form cannot see, so treat the number as a starting point and speak to us before you file on it.

Punjab: the rates in force

The Schedule inserted by the Punjab Finance Act 2024. Taxable value is determined by the valuation table, which section 2(j) defines as the table notified under the Stamp Act 1899, so it is the DC rate rather than what you paid or what the property would rent for.

Taxable valueResidentialCommercial
Up to Rs 5 millionExempt0.07%
Over Rs 5 million to Rs 10 million0.07%0.07%
Over Rs 10 million to Rs 25 million0.08%0.08%
Rs 25 million and above0.09%0.09%

What else the Punjab Finance Act 2024 changed

The rate is the visible change. These matter more to how the tax actually works.

  • Section 5 was replaced. It used to be headed "Ascertainment of annual value" and is now "Ascertainment of taxable value", determined by the valuation table for the rating area
  • Section 5-A, the machinery for valuation tables under the old regime, was omitted entirely
  • The exemption for owner-occupied property and the exemption for houses up to five marlas were both omitted. The test is now the Rs 5 million taxable value threshold and nothing else
  • A new section 6-A requires the owner to self-assess online, with a declaration of correctness, and pay on that basis
  • Self-assessments may be audited at random. Where a variation is found, the assessing authority levies the correct tax plus a one-time penalty equal to the amount of tax evaded

Sindh has not followed Punjab

Sindh still charges on annual rental value rather than capital value, at 25 per cent of annual value, with annual value built from the plot and covered areas at notified rates less a repair allowance. If you own property in both provinces, you are dealing with two genuinely different systems rather than two rates.

Sindh also keeps small-property exemptions that Punjab abolished, including relief tied to plot size and to a single small flat. We have not been able to read the Sindh statute directly, because the provincial law site does not respond at all from our environment, so what we can tell you rests on the department's own restatement rather than on the section text. We are not publishing Sindh due dates, rebates or surcharge percentages for the same reason.

Khyber Pakhtunkhwa, and Islamabad

Khyber Pakhtunkhwa charges on a table rather than as a percentage of a value: per-marla amounts by category and locality, with self-occupied property below about five marlas exempt and let-out property charged at double. The schedules were substituted by the KP Finance Act 2025. As in Punjab, the department's own site publishes superseded figures, so use the Finance Act rather than the web page.

Islamabad is the one to be most careful about. The tax is collected by the Metropolitan Corporation under the Islamabad Capital Territory Local Government Act 2015, not by CDA under the CDA Ordinance as widely stated. The rate instrument is not published, and the levy has been through the Islamabad High Court more than once, with a notification struck down, that order suspended, and bills suspended again in mid-2026 while billing resumed. We are not giving you an Islamabad rate, because we have not seen one we can stand behind and the position may not be settled.

Looking your property up in Punjab, and paying

The portal is epay.punjab.gov.pk and there is an ePay Punjab app. The identifier trips people up because most guides have it backwards.

  1. 1

    Search by PIN, not by PT-10

    The Property Identification Number is the key you search with. The PT-10 is what the system returns to you, and there may be more than one: separate records for arrears and for the current year.

  2. 2

    Pick the record you are paying

    Choose the PT-10 the search returns, and check the property details against what you own before going further.

  3. 3

    Generate the challan

    The portal produces a PSID, a payment slip number of seventeen or eighteen digits.

  4. 4

    Pay through any ordinary channel

    The PSID is payable at ATMs, through internet and mobile banking, through wallets, or over the counter at a bank.

Questions

The questionspeople ask

  • What is the property tax rate in Punjab?

    Between 0.07% and 0.09% of taxable value under the Schedule to the Punjab Urban Immovable Property Tax Act 1958, as substituted by the Punjab Finance Act 2024. Residential property with taxable value up to Rs 5 million is exempt. The older 5% or 10% of annual value figures, including on the department's own website, are repealed.

  • Is the five marla exemption still available in Punjab?

    No. The Punjab Finance Act 2024 omitted both the five-marla exemption and the owner-occupied exemption. The only residential threshold now is taxable value of Rs 5 million or less.

  • How is taxable value worked out in Punjab?

    By the valuation table for the rating area. Section 2(j) defines a valuation table as the one notified under the Stamp Act 1899, which is the DC rate, so it is neither the price you paid nor a rental estimate.

  • Will my Punjab property tax go down under capital value?

    Not necessarily. The Schedule contains a transitional provision: where the new calculation produces less tax than was payable on and before 31 December 2024, the old basis continues, uplifted, until the new figure overtakes it. For property already assessed before the reform, capital value acts as a floor.

  • Is provincial property tax the same as the tax on buying property?

    No. Provincial Urban Immovable Property Tax is an annual charge on ownership levied by your province. Sections 236C and 236K are federal advance income tax on transfer, and section 37 is federal capital gains. Different statutes, different authorities, and paying one does not affect the other.

  • How do I check my property tax online in Punjab?

    Through epay.punjab.gov.pk or the ePay Punjab app. Search using your Property Identification Number, the PIN. The system returns one or more PT-10 records, and you generate a challan from the one you want, which produces a PSID payable through banks, ATMs, apps or wallets.

  • Do I look up my property by PT-10 number?

    The other way round. The PIN is what you search with and the PT-10 is what the system returns, often more than one, because arrears and the current year sit in separate records. Guides telling you to search by PT-10 have it backwards.

  • Can I deduct provincial property tax from my rental income?

    Yes. Section 15A(1)(c) of the Income Tax Ordinance allows a deduction for any local rate, tax, charge or cess in respect of the property paid to a local authority or government, excluding only tax payable under the Ordinance itself.

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