How is property tax calculated in Pakistan?

Property tax in Pakistan is calculated based on the Annual Rental Value (ARV) of the property as assessed by the provincial Excise and Taxation Department. The tax rate is applied to the ARV using slabs. In Punjab, the rate ranges from 5% to 25% of ARV depending on the rental value bracket. In Sindh, a flat 25% of ARV is applied. Properties with ARV below PKR 4,320/year in Punjab are exempt.

What is Capital Gains Tax (CGT) on property sale in Pakistan?

Capital Gains Tax (CGT) in Pakistan depends on how long you held the property. Under FBR rules: properties held less than 1 year are taxed at 15% of gain, 1-2 years at 12.5%, 2-3 years at 10%, 3-4 years at 7.5%, 4-5 years at 5%, 5-6 years at 2.5%, and over 6 years are exempt from CGT. CGT applies to the difference between buying price and selling price.

What is withholding tax on property purchase in Pakistan?

Withholding Tax (WHT) on property transactions in Pakistan under Section 236C and 236K is 1% for filers and 2% for non-filers on both buyer and seller sides. For commercial properties, rates may be higher. WHT is collected at the time of transfer of property in the Sub-Registrar office.

Is there property tax exemption in Pakistan?

Yes. In Punjab, properties with ARV below PKR 4,320 per year are exempt from property tax. Owner-occupied properties up to 5 Marla used as primary residence may qualify for exemption. Agricultural properties are generally exempt. Pensioners and widows may also qualify for reduced rates. Check your provincial Excise and Taxation Department for current exemptions.

Property Tax Calculator Pakistan 2026

Calculate your annual property tax, capital gains tax, stamp duty, and total transfer costs. Updated for 2026 tax rates.

Enter Property Details

Province

Property Type

Tax Filer Status

Annual Rental Value (ARV) — PKR

Check your property tax bill or ask your excise office

Property Market Value — PKR

Used to calculate transfer costs (DC rate estimated at 50% of market)

Capital Gain (if selling) — PKR

Holding Period (Years)

Enter your property details and click Calculate

Results will appear here

How Property Tax Works in Pakistan

Annual Property Tax

Levied by provincial excise & taxation departments based on the Annual Rental Value (ARV). Properties below the provincial threshold are exempt. Rates range from 5% to 20% of ARV.

Capital Gains Tax

Collected by FBR when you sell a property. Rate depends on holding period: 15% for <1 year down to 0% for 6+ years. Calculated on the gain (sale price minus purchase price).

Stamp Duty & Registration

Paid at the time of property transfer. Stamp duty is 2-3% (province-dependent) and registration fee is 1% of DC rate value.

WHT & CVT

Withholding Tax per Finance Act 2024: buyer 3-6%, seller 3-6% (Sections 236K & 236C). Filers pay half the non-filer rate. Federal CVT (2-4%) applies only to Islamabad properties.

Read our detailed guide: Property Tax Calculator Pakistan 2026 — Complete Guide