Paying property tax is an important responsibility for all property owners in Punjab. Whether you own a house, shop, plot, or building, the Punjab Government allows taxes every year on your property. This tax helps the government improve roads, street lights, parks, and other public services in cities and towns. In this article, we will explain Property Tax in Punjab 2025- 2026 in simple words. You will learn what it is, who needs to pay, how it is calculated, and how you can pay it easily. So just stay connected with Raabty.
Owning property in Pakistan, whether for personal residence, generating rental income, or as an investment, necessitates a thorough understanding of the diverse taxes involved. These taxes contribute significantly to government revenue and have considerable economic implications.
Capital Value Tax is an annual tax imposed on the fair market value of property, as determined by the Federal Board of Revenue (FBR). The rate of capital value tax on properties in Pakistan is 2% of the property’s fair market value.
The revenue generated from this tax is typically used to fund local public services. In Pakistan, the Urban Immovable Property Tax (UIPT) serves this purpose at the provincial level. From July 1, 2025, the advance tax on the sale or transfer of immovable property under Section 236C is proposed to increase by 1.5% for active taxpayers in Pakistan, while tax rates for non-filers and late-filers are expected to remain unchanged under the current structure.
Although agricultural income is free from federal tax, it is taxable at the provincial level in Pakistan. Each province has the authority to set its own rules to allow taxes on agricultural income. So your tax limit depends on your land location.
If you are selling property in Pakistan, you may be subjected to some taxes based on the value of the property, filer status and holding of property. Tax and rates on selling properties are;
This tax is levied on the profit derived from the sale of property within six years of its acquisition.
This advance tax is collected at the time of property transfer. The rates of 236C in Pakistan applicable from July 1, 2025, till June 30, 2025, depend on filer status:
|
(Rs) Property Value |
Filer Tax Rates |
Late Filer Tax Rates |
Non-Filer Tax Rates |
|
Up to 50 Million |
3% |
6% |
10% |
|
50 Million – 100 Million |
3.5% |
7% |
10% |
|
Over 100 Million |
4% |
8% |
10% |
From July 1, 2025, the advance tax on the sale or transfer of immovable property under Section 236C is proposed to increase by 1.5% for active taxpayers in Pakistan. while tax rates for non-filers and late-filers are expected to remain unchanged under the current structure.
Property buyers in Pakistan are subject to paying advance tax and other fees, depending on the type and value of properties. It should be noted that payments exceeding PKR 5 million for property transactions must be made through banking channels as per the newly introduced section 75A.
The buyer pays an advance income tax on the purchase of property. Advance tax on the property depends on its transaction value and filer status. 236K tax rates in Pakistan applicable from July 1, 2024, till June 30, 2025, are listed below:
|
Value (Rs) |
Filer |
Late Filer |
Non-Filer |
|
Up to 50 Million |
3% |
6% |
12% |
|
50 Million – 100 Million |
3.5% |
7% |
16% |
|
Over 100 Million |
4% |
8% |
20% |
Do you know? The advance tax rate for property buyers who are active filers is proposed to decrease by 1.5% from July 1, 2025, while tax rates for non-filers and late-filers are expected to remain unchanged under the current structure.
Pak properties Tax in Punjab is an important part of buying, selling and owning property. Whether it is a house, shop, or plot, different taxes apply based on the property's value and your filer status. Key taxes include Capital Value Tax, property gain tax and Urban Property Tax. the other one is Advance Tax named as (236C & 236K).
Stay updated with the latest pak property tax rules and pay on time to avoid fines and make sure a smooth property experience. By paying your taxes responsibly, you support public services and maintain your legal property rights in Punjab.
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