Zakat on property in Pakistan depends on why you own it: there is no zakat on the house you live in, or on rental property itself. Zakat is due on plots and property bought to resell, at 2.5% of their market value every year, and on rent you have saved. For pension and provident fund, a common view is that zakat is due only on the amount you can actually withdraw.
Last updated: 2 November 2026 by Ahmed.
Enter resale plots under “Anything else zakatable” and withdrawable provident fund under “Investments” in our free Zakat Calculator Pakistan.
Zakat on Property: Quick Answers
| Property | Zakat due? | What to count |
|---|---|---|
| Home you live in | No | Nothing, whatever its value |
| Second home for family use | No | Nothing |
| Rental house, shop or flat | Not on the property | Saved rent on your zakat date |
| Plot bought to resell | Yes, every year | Market value on your zakat date |
| Plot bought to build your own house | No (most scholars) | Nothing |
| Plot bought with no clear plan | No (most scholars) | Nothing, until you decide to sell |
| Agricultural land | Not on the land | Ushr on the crop instead |
For zakat on property, the deciding factor is your intention when you bought it. If you bought it to sell for profit, it is trade goods. If you bought it to live in, rent out or keep, it is not.
Zakat on Property Bought to Resell: Plots and Files
Plot investing is common in Pakistan, especially in housing societies. If you bought a plot or file to sell when the price rises, pay 2.5% of its market value each year.
Example: you bought a plot in 2024 to resell. Its market value today is Rs 45,00,000. Zakat this year: Rs 1,12,500.
Plots on instalments: if you are still paying instalments on a plot meant for resale, a common view is to pay zakat on the instalments you have paid so far (or on the current value of your share), while unpaid future instalments are not subtracted from your other wealth all at once. Views differ here, so ask a scholar about your exact case.
If you change your mind: if you bought a plot to build a home and later decide to sell it, zakat starts once you have decided to sell. If you bought it to sell and later decide to build on it, zakat stops.
Zakat on Property Given on Rent
The building itself is not zakatable. The rent you collect and still have on your zakat date is added to your cash and savings. Rent you spent during the year is not counted.
Example: you collect Rs 80,000 a month in rent and have Rs 2,00,000 of it left on your zakat date. Add Rs 2,00,000 to your other wealth.
Zakat on Pension and Provident Fund
Scholars differ, but a widely used view is:
- Money you cannot access before retirement (for example, a government pension or a GP Fund you cannot withdraw): no zakat until you receive it.
- Money you can withdraw now (for example, a company provident fund that allows withdrawal, or a Voluntary Pension Scheme balance you can redeem): pay zakat on the amount you would actually receive today, after any penalties and tax.
- Once received: a pension or commutation lump sum becomes your cash. Count what you still hold on your zakat date.
Some scholars say zakat is due on the whole balance each year once it is legally yours. If you are unsure, ask a scholar about your scheme.
Example: your company provident fund shows Rs 20,00,000, and you could withdraw the full amount today. Zakat: Rs 50,000. If only your own contribution of Rs 10,00,000 is withdrawable, many scholars would count only that.
Common Mistakes
- Paying zakat on property you live in. It is never zakatable.
- Forgetting zakat on property bought to resell, such as plots, because no money changes hands each year.
- Using the purchase price for zakat on property such as a plot instead of today’s market value.
- Counting the full rent of the year instead of what you still have.
Related guides: Read our guides on Behbood Savings Certificate profit rate and Regular Income Certificate monthly profit.
FAQ
Is zakat on property due on a plot?
Only if you bought it to resell. Then pay 2.5% of its market value every year. A plot for your own house, or bought with no plan to sell, is not zakatable according to most scholars.
Is zakat due on a house given on rent?
Not on the house itself. Add the rent you have saved on your zakat date to your other zakatable wealth.
Is zakat due on provident fund?
A common view is that zakat is due on the amount you can withdraw today. Money you cannot access is not zakatable until you receive it.
Is zakat due on a file in a housing society?
If you bought the file to sell at a profit, yes, on its market value. If you bought it to build your home, no.
Is zakat on property due if I hold it for my children?
If you still own it and bought it to resell, yes. If it is for your family to live in later, no.
Related Guides
- Zakat Calculator Pakistan 2026
- Zakat nisab 2026 in Pakistan
- Zakat on business in Pakistan
- Zakat on shares, mutual funds and National Savings
- House loan and house financing in Pakistan