Property Tax Calculator

Annual urban immovable property tax on residential and commercial properties in Pakistan

Enter the assessed annual rental value from your notice, or estimate the annual market rent.

Property tax (Urban Immovable Property Tax / UIPT) is levied by provincial governments on the Annual Rental Value (ARV) of the property.

Annual Rental Value (ARV)

ARV is the estimated annual rent the property can fetch. It's assessed by provincial revenue authorities, not actual rent received.

Punjab Residential Slabs
ARV (Rs/yr)Rate
Up to 5,0000%
5,001 – 10,0005%
10,001 – 50,0007.5%
Above 50,00010%

Once you have your annual property tax figure, plug it into the Rental Yield Calculator to see its effect on your net return, or the Property Transfer Total Cost Calculator for the full cost of buying or selling.

Frequently Asked Questions

Is property tax based on purchase price or rental value?
Property tax in Pakistan, formally the Urban Immovable Property Tax (UIPT), is calculated on an assessed Annual Rental Value (ARV) set by your provincial revenue authority — not your property's purchase price or current market value.
Do all provinces charge the same property tax rate?
No. Property tax is administered provincially, so rates and structures differ. Punjab uses a progressive slab structure based on ARV, while Sindh applies a largely flat rate to both residential and commercial properties.
Are any properties exempt from property tax?
Some provinces exempt small owner-occupied residential properties below a certain ARV threshold, and may offer reductions for specific categories such as widows or disabled owners. Exemption rules vary by province and should be confirmed with the relevant revenue authority.

Property tax — formally Urban Immovable Property Tax (UIPT) — is a provincial levy collected annually on residential and commercial property, administered separately by each province's Excise & Taxation Department rather than by FBR.

Why your bill doesn't match your rent

UIPT isn't calculated on the rent you actually charge a tenant — it's based on the Annual Rental Value (ARV), a notional figure the provincial revenue authority assesses per property based on locality, size, and construction type, updated periodically through valuation tables rather than continuously. This is exactly why property owners are frequently confused when their tax bill doesn't track what a tenant is currently paying: the ARV can lag well behind actual market rents in a fast-appreciating area, or occasionally sit above them in a declining one.

A worked example

Two structurally similar houses in different parts of the same city can carry very different UIPT bills purely because they fall into different ARV valuation zones — location within the province's own valuation table matters more than the property's current market rent for this specific calculation.

How this connects to your other property costs

Property tax is an annual, recurring cost — separate from the one-time charges you pay only when a property changes hands, like stamp duty and the federal advance tax collected at transfer, which the Property Transfer Total Cost Calculator bundles together. If you rent the property out rather than occupy it, the rental income itself is taxed separately under the Rental Income Tax Calculator — UIPT and rental income tax are two different bills to two different authorities on the same asset, not one combined charge.

Common mistakes

Owners sometimes assume a property is exempt because it's owner-occupied or below a certain size, when exemption rules vary by province and by specific category (e.g. a single owner-occupied house under a size threshold may be exempt in one province's rules but not automatically in another's) — always confirm your specific exemption eligibility with the provincial Excise & Taxation Department rather than assuming a rule you heard applies nationwide.

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