Property taxes in Karachi are changing in 2025—whether you're a homeowner, investor, or tenant, understanding these updates can save you money and avoid penalties.

This guide covers:
2025 property tax rates (KMC & SRB)
Step-by-step calculation with examples
Legal exemptions (seniors, disabled, low-income)
Proven tips to reduce your bill

1. 2025 Property Tax Updates in Karachi

The Karachi Metropolitan Corporation (KMC) revised rates based on:

Annual Rental Value (ARV) adjustments (+12% avg. increase)

New commercial property brackets

Digital tax payments mandatory from July 2025

2. 2025 Tax Rates (Residential & Commercial)

Example Calculation:
If your home’s ARV is PKR 600,000:

600,000 × 18% = PKR 108,000/year (2025)  
vs. PKR 96,000 in 2024  

3. How to Save on Property Taxes (2025)

a) Claim Exemptions
Senior citizens (60+): 50% discount
Disabled owners: Full exemption (with NADRA certificate)
ARV < PKR 80,000/year: No tax

b) Reduce ARV Assessment
Challenge overvaluation: Submit 3 rental receipts of similar properties.
File appeal: Visit KMC Office (Gulshan-e-Iqbal) by March 31, 2025.

c) Pay Early (5% Discount)
Deadline: June 30, 2025.

4. How to Pay (2025 Online Process)

Check ARV: KMC Portal

Pay Via:

JazzCash/EasyPaisa (No fee)

Bank Transfer: HBL/UBL (Use KMC challan)

Get Receipt: Required for legal disputes.

5. Penalties for Late Payment

1% monthly fine after July 31, 2025.

Utility disconnection (K-Electric, water) for 6+ months overdue.

Key Takeaways

Residential rates increased by 2% (avg. PKR 12,000 more/year).
Digital payments mandatory—avoid bank queues.
Appeal ARV before March 31 to lower bills.

Need Help?
KMC Tax Helpline: 021-99206500 (8 AM–4 PM)

FAQ

1: Can I pay 2025 taxes in installments?
A: Yes! KMC offers 4 quarterly payments (25% each).

2: How is ARV calculated?
A: Based on location (e.g., DHA vs. Gulshan), property size, and market rents.

🔔 Follow for more 2025 tax updates! #KarachiTax #PropertyGuide