If you own a house, flat, shop or plaza in a city in Punjab, you have to pay property tax every year to the Excise, Taxation and Narcotics Control Department. This is separate from the taxes you pay when you buy or sell property. Many owners only find out about it when a notice arrives with a late surcharge added. This guide explains how property tax in Punjab is worked out, who is exempt, how to check your bill online, how to pay it and what happens if you pay late.
Quick answer: Punjab charges property tax (urban immovable property tax) at 5% of the annual rental value of a property, as assessed by the Excise department. Pay the full year's tax by 30 September to get a 5% rebate. After that date, a 1% surcharge is added. You can find your bill on the Excise department's website and pay it through ePay Punjab using the 17-digit PSID. Houses on less than 5 marla are exempt, except in category "A" areas.
What Is Property Tax in Punjab?
Property tax is a yearly provincial tax on buildings and land in the urban areas of Punjab. It is collected by the Excise, Taxation and Narcotics Control Department under the Punjab Urban Immovable Property Tax Act. It applies to residential, commercial and industrial property in rated urban areas.
It is different from the taxes paid at the time of a sale:
- Property tax: paid every year by the owner, to the province
- Stamp duty and transfer charges: paid once at transfer. See our guide to property transfer fees in Punjab.
- Advance tax and capital gains tax: paid to FBR on a purchase or sale. See our guide to FBR property tax in Pakistan.
How Property Tax Is Calculated
The tax is 5% of the annual rental value of the property. The annual rental value is the yearly rent the property could earn, as worked out by the Excise department. It is not the rent you actually receive.
The department assesses each property mainly on:
- Location: areas are grouped into categories, with category "A" the highest-value areas
- Covered area and land area
- Type of building, such as residential or commercial
- Nature of occupation: whether the owner lives there or it is rented out
Rented and commercial properties are usually assessed at a higher value than owner-occupied homes in the same area, so their tax is higher.
Who Is Exempt From Property Tax?
According to the Excise department, these properties are exempt:
- Residential houses built on less than 5 marla of land, except in category "A" areas
- Property that cannot earn an annual rent of more than Rs 4,320
- A single house occupied by the owner that cannot earn an annual rent of more than Rs 6,480
- Buildings owned by widows, minor orphans or disabled persons, where the annual tax is up to Rs 12,150
- One house of up to one kanal owned and lived in by a retired federal or provincial government servant
- Government and local authority buildings
- Mosques and other religious buildings
- Public parks, playgrounds, schools, hostels, libraries and hospitals
- Property whose rent goes entirely to religious or approved charitable institutions
An exemption is not always applied automatically. If you think your property qualifies, apply to your district Excise and Taxation Office with proof.
Due Date, Rebate and Late Surcharge
- Rebate: pay the full year's tax in one payment by 30 September and you get a 5% rebate.
- Late surcharge: from 1 October, a surcharge of 1% of the gross tax is added. The Punjab Finance Act 2026 adds a further 1% on 1 January, 1 April and 1 July while the tax stays unpaid.
- Demand notice: if you receive a demand notice, you usually have 30 days from the date it is served to pay.
The department's website still describes the surcharge as monthly, while the 2026 law sets it quarterly. Check the amount on your own bill, and pay early to avoid any surcharge.
How to Check Your Property Tax Online
- Open the official Excise, Taxation and Narcotics Control Department website, excise.punjab.gov.pk.
- Go to the property tax section and choose the option to view or verify your property tax challan.
- Enter the details asked for, such as your property tax number or the reference from an old bill, and your CNIC.
- View the amount due and note the 17-digit PSID shown on the challan.
If you cannot find your property online, visit your district Excise and Taxation Office with your CNIC and ownership documents, or call the department's helpline.
How to Pay Property Tax
- Get your PSID from the challan.
- Open ePay Punjab (epay.punjab.gov.pk or its mobile app), or use your bank's app or internet banking.
- Choose Excise and Taxation, then property tax, and enter the PSID.
- Check the amount and pay.
- Save the payment receipt. You will need it later.
PSID payments can usually also be made at bank branches, ATMs and mobile wallets that support ePay Punjab.
What Happens If You Do Not Pay?
Unpaid property tax keeps growing with the surcharge, and the department can take further action, such as:
- A penalty of up to the full amount of the unpaid tax, if non-payment is found to be wilful
- Sealing non-residential property
- Directing a tenant to pay the rent to the department until the arrears are cleared
- Recovering the amount as arrears of land revenue
Unpaid property tax can also hold up the registration of a sale, gift or exchange of the property. If you plan to sell, clear the tax first. Our guides on gifting property in Punjab and the inheritance mutation process explain the other steps.
Tips for Property Owners
- Pay by 30 September each year to get the 5% rebate.
- Keep every receipt with your property documents.
- Tell the department if you start living in a property you used to rent out, as the assessment can change.
- Before buying, ask the seller for proof that property tax has been paid.
- When comparing homes on Pakistan Property, include the yearly property tax in your running costs.
Frequently Asked Questions
1. What Is the Property Tax Rate in Punjab?
Property tax in Punjab is 5% of the annual rental value of the property, as assessed by the Excise department.
2. What Is the Last Date for Property Tax in Punjab?
Pay the full year's tax by 30 September to get a 5% rebate. A 1% surcharge is added from 1 October.
3. Are 5 Marla Houses Exempt From Property Tax?
Residential houses built on less than 5 marla of land are exempt, except in category "A" areas.
4. How Can I Check My Property Tax Online?
Use the property tax section of the Excise department's website, excise.punjab.gov.pk, to view your challan and PSID.
5. How Do I Pay Property Tax in Punjab?
Pay through ePay Punjab using the 17-digit PSID on your challan, by app, internet banking, ATM or a bank branch.
6. Can I Sell a Property With Unpaid Property Tax?
Unpaid property tax can block the registration of a sale, gift or exchange, so clear any arrears before you sell.
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