Property tax is a significant consideration when owning or investing in real estate. In Madinah, new tax regulations will come into effect in 2025. Here's a detailed guide to help you understand the calculation process:
  • Understand the Tax Rate: The tax rate in Madinah is set at 1.5%.
  • Determine Property Value: Use the property tax calculator provided by the government or hire an appraiser to determine the market value of your property.
  • Apply Floor Area Exemption: The first 150 square meters of residential and commercial properties are exempt from tax.
  • Calculate the Taxable Value: Subtract the floor area exemption from the total property value.
  • Multiply by Tax Rate: Multiply the taxable value by the tax rate (1.5%).
    • For example, if your property's market value is SAR 1,000,000 and it has an area of 200 square meters, your calculation would be:
  • Taxable Value = 200 sqm - 150 sqm = 50 sqm
  • Property Tax = 50 sqm x 1.5% = SAR 750
    • Don't forget, this guide provides a simplified overview. Specific tax laws and regulations may vary. Tap the link to access a comprehensive property tax calculator and learn more: https://www.realfast-estate.info/en/investor/profile/detail/{user.investorprofile.pk}/ PropTip MadinahRealEstate PropertyTax