Punjab · Excise & Taxation · Finance Act 2014
Punjab Luxury House Tax Calculator
A one-time levy on large residential houses in the rating areas and cantonments, charged per kanal and capped by category. Not an annual tax — what still grows an unpaid 2014 bill is the surcharge.
This was a one-time charge. The tax was payable once, in a lump sum on or before 30 September 2014, or in four equal quarterly instalments beginning on that date. It is not an annual charge. What this calculator is still useful for is an unpaid or disputed 2014 liability, and for reading the schedule — so the surcharge below is what actually grows the bill now.
The schedule
Rate per kanal by location and category
| Location | Category | Rate per kanal | Maximum |
|---|---|---|---|
| Lahore district, including Lahore and Walton cantonments | 2 kanals or more with covered area over 6,000 sq ft | Rs 200,000 | Rs 2,000,000 |
| 8 kanals or more with covered area over 12,000 sq ft | Rs 300,000 | Rs 3,600,000 | |
| Rating area of a divisional headquarters district, and all cantonments of that district | 2 kanals or more with covered area over 6,000 sq ft | Rs 150,000 | Rs 1,500,000 |
| 8 kanals or more with covered area over 12,000 sq ft | Rs 250,000 | Rs 3,000,000 | |
| All remaining rating areas and cantonments | 2 kanals or more with covered area over 6,000 sq ft | Rs 100,000 | Rs 1,000,000 |
| 8 kanals or more with covered area over 12,000 sq ft | Rs 200,000 | Rs 2,400,000 |
A house that meets the 8-kanal category is charged at that higher rate; the 2-kanal category covers everything from 2 kanals up to but not including the 8-kanal case. Both the plot size AND the covered area test must be met for a category to apply. For an area beyond a whole kanal, the rate applies pro rata for each full marla; anything less than a full marla is ignored. There are 20 marlas in a kanal.
Exemptions
Houses the levy did not reach
- A residential house whose construction was completed before 1 January 2001.
- A house owned on the basis of an inheritance that opened before 1 July 2014.
- A house, or part of one, owned by a widow through inheritance and used as her permanent residence — for one house only if she owns more than one.
Luxury house tax already paid under the Punjab Finance Act 2013, wholly or partly, could be claimed as an adjustment against the 2014 liability.
Reading the result
A one-time levy, and both tests must be met
Unlike annual property tax, this was charged once on qualifying houses rather than every year. That makes it a transaction-style cost to establish and settle, not a recurring liability to budget for.
The qualifying test has two limbs and both have to be satisfied. A house that is large in area but falls short on the other measure is outside the charge entirely — which is why checking both before assuming liability matters.
Part-kanal plots are not rounded away
Where a plot runs to a fraction of a kanal, the charge is apportioned rather than rounded down to the nearest whole. Assuming the fraction is ignored understates the amount.
Check the current status before paying
Levies of this kind in Punjab have been amended, challenged and in places withdrawn. Before settling an old demand, confirm the provision still stands for the period claimed — and keep the receipt if you do pay, because a one-time charge tends to be re-demanded when records are incomplete.
Where this stops
This applies the published basis to the figures you enter. Exemptions and the rebate that applied for early payment turn on circumstances the calculator cannot see, and the Excise and Taxation Department's assessment is what governs.
FAQs
Punjab Luxury House Tax FAQs
Is luxury house tax still payable every year?
No. It was a one-time levy under the Punjab Finance Act 2014, due in a lump sum by 30 September 2014 or in four equal quarterly instalments. It is not an annual charge. What is still live is an unpaid or disputed 2014 liability, on which the 1%-per-month surcharge keeps running.
How is the amount worked out?
A rate per kanal of plot size, capped. In Lahore a qualifying 2-kanal house is charged Rs 200,000 a kanal up to a Rs 2,000,000 ceiling; an 8-kanal house is Rs 300,000 a kanal up to Rs 3,600,000. Divisional headquarters and the remaining rating areas pay less, on the same shape.
What are the two tests?
Plot size and covered area, and both have to pass. The smaller category needs 2 kanals or more with a covered area over 6,000 square feet; the larger needs 8 kanals or more with over 12,000 square feet. A 9-kanal house with only 7,000 square feet covered does not reach the larger category — it is charged in the smaller one.
How is a part-kanal plot treated?
Pro rata for each full marla beyond a whole kanal, with anything less than a full marla excluded. There are 20 marlas to a kanal, so a 2-kanal 11-marla plot is charged as 2.55 kanals and a part marla on top of that is ignored.
Who was exempt?
A house whose construction was completed before 1 January 2001; a house owned on the basis of an inheritance that opened before 1 July 2014; and a house, or part of one, owned by a widow through inheritance and used as her permanent residence — for one house only where she owns more than one.
What was the 10% rebate?
A 10% reduction in the liability for paying the whole amount in a lump sum before 30 September 2014. That window closed long ago; the toggle is here only so the original figure can be reconstructed.
How does the surcharge work?
1% of the tax due per month on anything paid after the due dates. On an unpaid 2014 liability that has been running for years, the surcharge can exceed the tax itself, which is why it is shown as its own line rather than folded into the total.
Does this replace property tax?
No. It was charged in addition to the urban immovable property tax on the same house, and the owner and the occupier are jointly and severally liable for it.
Can I set off what I paid under the 2013 Act?
Yes. Luxury house tax paid under the Punjab Finance Act 2013, wholly or partly, could be claimed as an adjustment against the 2014 liability. This calculator does not subtract it — deduct it yourself from the figure shown.
Related tools
Outside the rating areas instead?
A farm house outside a rating area is charged per square foot of covered area under the Finance Act 2011 — and that one is annual.
Open the Punjab Farm House Tax Calculator