Karachi Property Tax 2025: Latest Rates + 5 Legal Ways to Save
Property taxes in Karachi are getting an update in 2025. Whether you own a home, invest in real estate, or rent, it's important to understand what's changing. Knowing the new rules can help you save money, avoid penalties, and even qualify for tax exemptions.
This simple guide covers:
- New tax rates for 2025 (KMC & SRB)
- Step-by-step calculation examples
- Who’s exempt from paying tax
- Smart tips to lower your tax bill
1. What’s New in Karachi Property Tax for 2025?
The Karachi Metropolitan Corporation (KMC) has made several key changes:
- Annual Rental Values (ARVs) have increased by an average of 12%.
- New brackets for commercial properties are in effect.
- Digital tax payments are mandatory starting July 2025.
2. 2025 Tax Rates (Residential & Commercial Properties)
| Property Type | Tax Rate | Change from 2024 |
|---|---|---|
| Residential (5 Marla) | 18% of ARV | +2% |
| Commercial (100–200 sq. ft) | 25% of ARV | +3% |
| Vacant Plots | 8% of ARV | No Change |
Example:
If your home’s ARV is PKR 600,000,
2025 Tax = 600,000 × 18% = PKR 108,000/year (Compared to PKR 96,000 in 2024, that’s a PKR 12,000 increase)
3. How to Lower Your Property Tax in 2025
a) Apply for Exemptions
- Senior citizens (60+) → 50% discount
- Disabled individuals → 100% exemption (with NADRA certificate)
- ARV below PKR 80,000/year → No tax at all
b) Dispute a High ARV
If your ARV seems too high, you can:
- Submit 3 rental receipts from similar properties.
- File an appeal at KMC Office, Gulshan-e-Iqbal.
- Do this before the March 31, 2025 deadline.
c) Pay Early and Get a Discount
- Pay before June 30, 2025 and receive a 5% early payment discount.
4. How to Pay Your Property Tax Online (2025)
Follow these steps:
- Check your ARV on the KMC Online Portal.
- Pay via:
- JazzCash / EasyPaisa (no service fee)
- Bank Transfer through HBL or UBL using your KMC challan
- Download your receipt for legal record and dispute resolution.
5. Penalties If You Miss the Deadline
- 1% late fee per month starts after July 31, 2025.
- If unpaid for 6+ months, your utilities (K-Electric, water) may be disconnected.
Quick Recap
- Residential tax rate increased by 2% → ~PKR 12,000/year more.
- Digital payments now required → no more bank visits.
- Appeal ARV by March 31 if it's incorrect.
Need Help?
Call the KMC Tax Helpline at 021-99206500 (Mon–Sat, 8 AM–4 PM)
FAQs – Karachi Property Tax 2025
1. Can I pay my 2025 property tax in installments?
Yes. KMC allows four quarterly payments (25% each).
2. How is my property’s ARV calculated?
Based on location, property size, and market rental value. For example, DHA has higher ARVs than Gulshan.
3. Is online payment safe and accepted?
Yes. JazzCash, EasyPaisa, HBL, and UBL are secure options. Save your receipt.
4. What if I forget to pay by the deadline?
You'll be charged 1% per month. After 6 months, utilities may be disconnected.
5. I rent my home. Do I still need to pay property tax?
No. It's the owner’s responsibility, not the tenant’s. Still, make sure your landlord is paying it.
