In Karachi the yearly property tax is 25% of the annual rental value (ARV). Sindh Excise works out the ARV from a fixed monthly rate per square yard of plot and per square foot of covered area, set by zone, multiplied by 12, less 10% for repairs. A 240 sq yd house in zone A with 1,600 sq ft built pays Rs 2,484 a year.
Pick the property type and the zone printed on your PT-1 notice, then enter the plot and covered area. Houses on plots of 120 sq yd or less and flats of up to 600 sq ft are exempt. For the taxes paid when you buy or sell, use the property transfer tax calculator.
Karachi property tax rates by zone
Monthly rates in rupees: per sq yd of plot / per sq ft of covered area. From the Sindh Excise rate schedule. The tax is 25% of the ARV from 1 July 2013.
| Karachi property | Zone A | Zone B | Zone C | Zone D |
|---|---|---|---|---|
| Residential house | 0.50 / 0.50 | 0.40 / 0.40 | 0.30 / 0.30 | 0.20 / 0.20 |
| Residential flat | 0.60 (covered only) | 0.50 (covered only) | 0.40 (covered only) | 0.30 (covered only) |
| House in a regularised katchi abadi | 0.25 / 0.25 | 0.20 / 0.20 | 0.15 / 0.15 | 0.10 / 0.10 |
| Commercial (ordinary) | 5.00 / 5.00 | 4.00 / 4.00 | 3.00 / 3.00 | 2.50 / 2.50 |
| Commercial in a regularised katchi abadi | 2.50 / 2.50 | 2.00 / 2.00 | 1.50 / 1.50 | 1.25 / 1.25 |
| Concessionary commercial (school, hospital, petrol pump and others) | 3.00 / 3.00 | 2.50 / 2.50 | 2.25 / 2.25 | 2.00 / 2.00 |
| Industrial | 0.70 / 0.70 | 0.60 / 0.60 | No rate | No rate |
Concessionary commercial covers educational institutions, hospitals, entertainment venues, sports complexes, petrol pumps and licensed warehouses. Industrial rates are set for zones A and B only. Zone A takes in the most expensive localities and zone D the least.
How to calculate property tax in Karachi
Example 1: a house on 240 sq yd in zone A, with 1,600 sq ft covered over two floors.
| Step | Amount |
|---|---|
| Plot: 240 sq yd x Rs 0.50 | Rs 120 a month |
| Covered: 1,600 sq ft x Rs 0.50 | Rs 800 a month |
| Gross annual rental value: Rs 920 x 12 | Rs 11,040 |
| Less 10% for repairs and maintenance | Rs 1,104 |
| Annual rental value (ARV) | Rs 9,936 |
| Tax at 25% of ARV | Rs 2,484 |
Before July 2013 the rate was 20% of ARV, so the same house paid Rs 1,987.
Example 2: a 1,100 sq ft flat in zone B. Flats are assessed on covered area only: 1,100 x Rs 0.50 x 12 is Rs 6,600, less 10% gives an ARV of Rs 5,940, and the tax is Rs 1,485 a year.
Property tax on common Karachi properties
Worked out by the calculator with no rebates.
| Property | Size | Gross annual value | ARV | Tax a year |
|---|---|---|---|---|
| Residential house, zone A | 240 sq yd, 1,600 sq ft | Rs 11,040 | Rs 9,936 | Rs 2,484 |
| Residential house, zone A | 500 sq yd, 4,500 sq ft | Rs 30,000 | Rs 27,000 | Rs 6,750 |
| Residential house, zone B | 400 sq yd, 3,000 sq ft | Rs 16,320 | Rs 14,688 | Rs 3,672 |
| Residential house, zone C | 200 sq yd, 1,800 sq ft | Rs 7,200 | Rs 6,480 | Rs 1,620 |
| Residential house, zone D | 160 sq yd, 1,400 sq ft | Rs 3,744 | Rs 3,369.60 | Rs 842 |
| Residential flat, zone B | 1,100 sq ft | Rs 6,600 | Rs 5,940 | Rs 1,485 |
| Commercial (ordinary), zone B | 100 sq yd, 900 sq ft | Rs 48,000 | Rs 43,200 | Rs 10,800 |
Covered area means the built area of every floor added together, including a basement.
Who is exempt from property tax in Sindh
Section 4 of the Sindh Urban Immovable Property Tax Act 1958 exempts:
- a building used as a residence on a plot of 120 sq yd or less
- one flat of up to 600 sq ft covered area, on any floor of a residential building
- any building or land with an annual value of Rs 864 or less
- property owned by widows, minor orphans and permanently disabled persons where the annual value is Rs 48,000 or less
- government property used for a public purpose, places of worship, charities, parks and libraries, and protected heritage buildings not used for business
The Rs 48,000 limit is on the ARV, not the tax. A 500 sq yd house in zone B with 4,000 sq ft built has an ARV of Rs 19,440, so a widow who owns it pays nothing. Any other owner pays Rs 4,860.
Shops, offices and mixed buildings
Commercial rates are ten times the house rate in zone A: Rs 5.00 against Rs 0.50. A 100 sq yd shop in zone B with 900 sq ft built pays Rs 10,800 a year.
The Excise department assesses a building floor by floor. If the ground floor is a shop and the upper floors are homes, work out each part with its own property type and add the results. Some uses, such as godowns, poultry and cattle farms, marriage lawns, parking and rooftop uses, can be charged 25%, 50% or 75% below the ordinary commercial rate. The calculator uses the full rate, so check your notice for any reduction.
A landlord also pays income tax on rent. See the rental income tax calculator.
Rebates on your notice: Sindh Excise allows rebates for an old building, upper floors, non-RCC construction and property on an internal lane or other adverse location. The calculator does not deduct them, so a notice showing one of these will be lower. The published rate schedule has one set of rates for each property type; it does not split owner-occupied and let property. Arrears and late surcharge are added on the PT-1 notice, so pay the amount printed there.
Karachi property tax questions
How is property tax calculated in Karachi?
Multiply the plot in sq yd and the covered area in sq ft by the monthly rates for your zone and property type, add them, and multiply by 12. Take off 10% for repairs to get the annual rental value. The tax is 25% of that. A zone B house on 400 sq yd with 3,000 sq ft pays Rs 3,672.
Which zone is my property in?
Sindh Excise places every locality in zone A, B, C or D, with A for the most expensive areas. The zone is printed on your PT-1 notice. If you do not have a notice, ask the Excise office for your town. Zone A rates are two and a half times zone D rates for a house.
Is a 120 square yard house exempt from property tax in Karachi?
Yes. A building used for residence on a plot of 120 sq yd or less is exempt under section 4 of the Act, however many floors it has. A house on 121 sq yd or more is taxed on its full plot and covered area, not just the part above 120.
Do flats pay property tax in Karachi?
Yes, unless the flat is 600 sq ft or less, in which case one such flat is exempt. Flats are charged on covered area only, at Rs 0.60 a sq ft a month in zone A down to Rs 0.30 in zone D. A 1,100 sq ft flat in zone B pays Rs 1,485 a year.
Is property tax in Karachi different from Punjab?
Yes. Sindh still uses the annual rental value: fixed monthly rates per sq yd and sq ft, and a tax of 25% of the value. Punjab moved on 1 January 2025 to 0.07% to 0.09% of the DC valuation table value. See the Punjab annual property tax calculator for that method.
Last reviewed 1 October 2026. Results are estimates; official notices always take precedence.