Provincial Property Tax in Pakistan
Owners of buildings in towns and cities pay a yearly property tax to their province, worked out from the rent the property could earn. It's separate from the federal taxes on buying, selling and renting property.
01 Two kinds of tax
Provincial vs federal property taxes
Provinces tax owning the property each year. FBR taxes the deals: buying, selling and rent.
| Tax | Who charges it | When |
|---|---|---|
| Property tax (UIPT) | Province | Every year |
| Stamp duty, registration fee | Province | When you buy |
| Advance tax 236K | FBR | When you buy |
| Advance tax 236C | FBR | When you sell |
| Capital gains tax | FBR | In your return, after a sale |
| Tax on rent | FBR | In your return, every year you let it |
02 By province
Who collects property tax
Punjab
Excise, Taxation & Narcotics Control Department: 5% of annual value, due by 30 September. Full Punjab guide
Sindh
Excise, Taxation & Narcotics Control Department, Sindh, in rating areas such as Karachi. A detailed guide is coming.
Islamabad
The Islamabad local administration charges property tax in the capital territory. A detailed guide is coming.
What is provincial property tax?
A yearly tax on buildings and land in towns and cities, charged by the province (the Urban Immovable Property Tax). It is separate from the federal taxes on buying, selling and renting property.
Who collects property tax?
In Punjab and Sindh, the provincial Excise and Taxation department. In Islamabad, the local administration. Check your demand notice or the department's website.
Is provincial property tax deductible from rental income?
Yes. Local property tax you pay on a rented property is deductible from your rental income for income tax (section 15A).
Do I pay property tax on an empty plot?
The Urban Immovable Property Tax is charged on buildings and lands in rating areas based on their annual value; rules for vacant plots vary by province. Check with your Excise office.