Pakistan Property Tax Guide 2026: 5 Marla House Tax, FBR Rates & CGT

By Tariq MahmoodLast updated: August 202616 min read

Statutory source alignment verified for August 2026 by Tariq Mahmood (Statutory Research)

Understanding pakistan property tax, 5 marla house tax in pakistan, and federal withholding taxes is vital for property buyers, sellers, investors, and homeowners.

Property taxation in Pakistan involves two main levels: Provincial Urban Immovable Property Tax (UIPT) assessed annually on rental value or plot size, and Federal FBR Taxes levied on property purchases, sales, capital gains, and rental income.

1. Provincial Property Tax Rates (UIPT) & 5 Marla Rules

Provincial Excise and Taxation Departments collect annual annual property tax in pakistan:

5 Marla House Tax in Punjab (Lahore, Rawalpindi, Multan): Self-occupied residential houses built on plots up to 5 marlas in Category C, D, or E rating areas are fully exempt from property tax. In Category A or B rating areas, nominal annual property tax applies.
Property Tax in Sindh & Karachi: Assessed on Gross Annual Rental Value (ARV). Property tax duplicate bills can be downloaded online via excise.gos.pk.
Property Tax in ICT & Islamabad: Assessed by the Capital Development Authority (CDA) and ICT Excise department based on covered square feet area.

2. FBR Buyer & Seller Withholding Tax Rates (2026)

At the time of property transfer, FBR levies advance withholding taxes based on official FBR property valuation tables (e.g., fbr rate list lahore 2026 23 or bahria town karachi fbr rates):

Tax Type	Section	Active Tax Filer Rate	Non-Filer Rate
Buyer Advance Tax	Section 236K	3% (4% for high value)	10.5% to 12%
Seller Advance Tax	Section 236C	3%	10%
Capital Value Tax (CVT)	Provincial CVT	1% to 2% of property value	1% to 2%

3. Capital Gain Tax (CGT) on Property Sales

Capital gains realized on the sale of real estate immovable property are taxed under Section 37(1A). For properties acquired after July 1, 2024, active filers pay a flat 15% CGT rate. For older properties, CGT reduces with holding period length down to 0% after 6 years of holding.

Read our dedicated Pakistan Capital Gain Tax Guide for complete holding period tables.

4. Deemed Income Tax under Section 7E

Under Section 7E, individuals holding immovable property in Pakistan with aggregate fair market value exceeding PKR 25 million are deemed to have earned rental income equal to 5% of the property value, taxed at 20% (resulting in an effective 1% deemed income tax on total market value). Primary self-occupied residences and specified agricultural plots are exempt.

5. Rental Income Tax Slabs in Pakistan

Gross rental receipts from real estate property are taxed under separate property rental slabs. Calculate rental tax on our Rental Income Tax Calculator or explore our main Pakistan Income Tax Knowledge Hub.

Frequently Asked Questions

How is 5 marla house tax calculated in Punjab and Lahore?

In Punjab, a 5 marla self-occupied residential house in category A rating area incurs nominal property tax, while self-occupied houses on 5 marla plots in lower category areas (C or D) are frequently exempt under provincial urban property tax rules.

What is the buyer withholding tax rate under Section 236K in Pakistan?

Under Section 236K of the Income Tax Ordinance, property buyers pay advance withholding tax of 3% for active filers, 6% for late filers, and 10.5% to 12% for non-filers on FBR valuation rates.

What is the seller withholding tax rate under Section 236C?

Under Section 236C, property sellers pay advance withholding tax of 3% for active filers and 10% for non-filers at the time of transfer.

How do I check and pay Sindh property tax duplicate bill online?

Sindh property owners can generate and download property tax bills online via the Excise & Taxation Sindh portal (excise.gos.pk) and pay through e-Payment GOS or mobile banking.

What is Deemed Income Tax on immovable property under Section 7E?

Section 7E imposes a 1% deemed income tax on the fair market value of immovable properties held in Pakistan (excluding one self-occupied primary residence and specific agricultural land).

About the Author

Tariq Mahmood

Real estate valuation expert and tax attorney advising property developers, housing societies, and buyers across Pakistan.