Land Development Tax vs Holding Tax: Rates, Payment & Key Differences

If you own land, a house, or a flat in Bangladesh, you have probably run into two terms that get thrown around like they mean the same thing: land development tax and holding tax. They don’t. Land development tax is a charge on land itself, collected through the national land administration system. Holding tax is a local government levy on property, collected by your City Corporation, Pourashava, or municipality. Depending on what you own and where it sits, you might owe one, the other, or both.

That last part is where most of the confusion comes from, and it’s the question this article is built to answer.

Are land development tax and holding tax the same thing?

No. They run through completely different offices, use different assessment methods, and produce different receipts.

Land development tax, often called khajna, is administered under the land tax system and paid through the government’s ldtax.gov.bd portal. After payment, you receive a dakhila, the receipt that proves your land tax is up to date.

Holding tax is a municipal charge tied to your property’s assessed value. It funds local services like street lighting, waste collection, and roads, and it’s collected by whichever local authority has jurisdiction over your area, DNCC and DSCC in Dhaka, or the relevant Pourashava elsewhere.

Paying one does not clear the other. That single sentence causes more confusion for property owners than almost anything else in this space, so keep it in mind as we go through the details.

What is land development tax in Bangladesh?

Land development tax is the annual charge landholders pay to the land administration system for the land they own, whether it’s agricultural or non-agricultural. It replaced older colonial-era land revenue concepts and now operates under the Land Development Tax Act 2023, which replaced the 1976 ordinance. The Act is Act No. 31 of 2023 and was published on 18 September 2023. The Act became effective on 1 July 2024.

Land development tax is also known as khajna

In everyday conversation, especially outside Dhaka, people still call this tax khajna (খাজনা). Older residents and rural landholders use this term far more than the formal name, so if someone asks you whether you’ve “paid khajna,” they’re asking about land development tax.

What does land development tax apply to?

The tax applies based on land category and use. Agricultural land, non-agricultural land, and land used for commercial or industrial purposes are assessed differently, and the applicable rate depends on the specific schedule under current land administration rules. The 2023 Act also provides an exemption for individuals and families dependent on agriculture who hold up to 25 bigha (about 8.25 acres) of agricultural land, subject to the applicable conditions. The official Land Development Tax Act 2023 sets out the relevant provisions.

We’re intentionally not printing exact per-decimal rates here. Land tax rates and category definitions get updated, and a number that’s accurate this year can be stale by the time you read this. Always check the current schedule on the official portal before paying.

Who administers land development tax?

Land development tax sits with the land administration system under the Ministry of Land, not with your local City Corporation. This is one of the most common points of confusion. People assume anything tied to their house or plot goes through the same local office, but land tax and municipal tax are handled by entirely separate government structures.

What is a dakhila?

A dakhila is the official receipt issued after you pay your land development tax. It’s not just a formality. You’ll need it for land mutation (namjari), for proving continuous ownership, and often when buying or selling property, since a clean dakhila history signals that the land’s tax obligations have been kept current.

What is holding tax in Bangladesh?

Holding tax is the property-based revenue that City Corporations, Pourashavas, and other local authorities collect from property owners in their jurisdiction. In Dhaka, that means DNCC or DSCC, depending on which side of the city your property falls in.

What does holding tax cover?

Holding tax isn’t purely a “you own a building” charge. In practice, the assessed amount often bundles in components tied to municipal services such as lighting and conservancy (waste collection), on top of the base valuation of the property. So when you pay holding tax, you’re effectively paying for the property’s assessed value plus a share of the local services that keep your neighborhood functioning.

For a more detailed explanation, see our guide to holding tax in Bangladesh.

Who collects holding tax?

Whichever local authority has jurisdiction over your property collects its holding tax. In Dhaka, that’s DNCC for the north and DSCC for the south. Outside Dhaka, it’s the relevant Pourashava or municipal body. There’s no single national office handling holding tax the way there is for land development tax, and rates and billing cycles can differ from one city to the next.

How is holding tax assessed?

Local authorities generally assess holding tax based on the property’s assessed or annual rental value, then apply the applicable local rate and any added municipal components. Because assessment practices and rates vary by authority, we won’t quote a single “holding tax equals X percent” figure here. Reports comparing cities have found real disparities in how holding tax is calculated and charged from one municipality to the next, so the honest answer is: check with your specific local authority.

Land development tax vs holding tax: what’s the difference?

Here’s the comparison side by side.

Aspect	Land Development Tax	Holding Tax
Common term	ভূমি উন্নয়ন কর / খাজনা	Holding Tax / গৃহকর
What it taxes	Land	Property (the “holding”) and related municipal services
Who administers it	Land administration (Ministry of Land)	City Corporation, Pourashava, or municipality
How it’s assessed	Land category, area, location, and applicable schedule	Assessed or annual rental value plus local rates and components
Proof of payment	Dakhila	Local authority tax receipt
System	National land tax system	Municipal or local government revenue system
Billing frequency	Annual	Set by the local authority’s own billing schedule
Online payment	ldtax.gov.bd	Local authority’s e-revenue system, where available
Same tax?	No	No
Can you owe both?	Yes, depending on your property	Yes, depending on your property

Notice what’s not in this table: a flat national rate for either tax. That’s deliberate. Land tax rates depend on your land’s category and location, and holding tax depends entirely on which local authority you fall under. Anyone quoting you a single universal number for either tax is oversimplifying.

Who collects land development tax and holding tax?

Land development tax

Land development tax is collected through the national land administration system. You register and pay through the official Land Development Tax portal, which also handles land holding registration and issues your dakhila once payment clears.

Holding tax

Holding tax collection depends on your location. In Dhaka, it’s split between two authorities:

• Dhaka North City Corporation (DNCC) handles holding tax and e-revenue services for the northern part of the city.
• Dhaka South City Corporation (DSCC) manages the equivalent services, including its own e-Revenue system, for the southern part.

Outside Dhaka, your local Pourashava or municipal office is your point of contact.

Who has to pay?

Who pays land development tax?

Anyone holding land may owe land development tax on that land, subject to applicable rules and exemptions. Agricultural and non-agricultural landholders fall under different rules, and as mentioned earlier, certain smallholder agricultural cases can qualify for exemption under the 2023 Act. If you’re unsure whether you qualify, this is worth checking directly with the land office rather than assuming.

Who pays holding tax?

Property owners, or in some cases property holders, within a City Corporation’s, Pourashava’s, or municipality’s jurisdiction are liable for holding tax on that property.

What about flat owners?

This is where things get genuinely tricky, and it’s especially relevant for GLG’s buyers. When you own a flat, you’re not necessarily dealing with land tax the same way a standalone house owner would. Your relationship to the underlying land may be a shared or proportional interest, not sole ownership of a plot. Meanwhile, the building itself, and by extension your unit, typically falls under the municipal holding tax system.

In practice, this means flat owners in a project like an apartment building often deal primarily with holding tax obligations tied to the building’s holding, while land-related tax matters are frequently addressed at the building or land registration level rather than by each individual unit owner separately. The exact arrangement depends on how the project’s land ownership and building registration were structured, so it’s not something to assume. If you’re buying a flat, ask the developer directly how land tax and holding tax responsibilities are divided for that specific project.

How are land development tax and holding tax calculated?

Land development tax calculation

Land development tax is worked out from a combination of factors: the land’s category (agricultural, non-agricultural, commercial, industrial), its area, its location, and the applicable rate schedule under current land administration rules. The 2023 Land Development Tax Act reworked several of these rules from the older 1976 framework, including provisions relating to agricultural land exemptions.

Don’t rely on rates you find quoted from years ago. Land tax schedules get revised, and using an outdated number when you calculate what you owe can lead to underpayment, which then complicates your dakhila history down the line.

Holding tax calculation

The general model for holding tax is your property’s assessed or annual rental value multiplied by the applicable local rate, with municipal service components sometimes added on top. But the actual number depends entirely on your specific local authority’s schedule. DNCC’s own published assessment documentation, for instance, ties the tax to annual value plus municipal components, which is a useful general model, but you should confirm your figure directly with your local office rather than backing into it from a formula found online.

When and how do you pay?

How to pay land development tax online

1. Register or log in on the ldtax.gov.bd portal.
2. Add or verify your holding and land details.
3. Review the tax demand shown for your holding.
4. Complete payment through the portal.
5. Download and keep your dakhila. Store a copy separately from your other property documents, since you’ll need it for mutation and future transactions.

How to pay holding tax

The process depends on which local authority covers your property. In Dhaka, DNCC and DSCC each maintain their own holding tax service procedures and e-revenue systems, so check with whichever corporation has jurisdiction over your address rather than assuming the process is identical across the city. Outside Dhaka, your Pourashava office will have its own procedure, and not every municipality offers online payment yet.

What receipt do you get?

Payment	Receipt
Land Development Tax	Dakhila
Holding Tax	Local authority or corporation tax receipt

Keep both. They serve different purposes and get requested at different points, whether you’re selling, mutating land, or just proving your taxes are current.

Can you have to pay both?

Yes, and this is genuinely common. Here’s how it tends to play out across three typical situations.

Vacant agricultural or non-agricultural land. Land development tax generally applies. Whether holding tax applies depends on whether the local authority has brought that specific plot under its taxable holdings, which varies by area.

A standalone urban house. In most cases, you’re looking at both. Land development tax on the plot, holding tax on the property and its municipal services.

A flat or apartment. As covered above, your obligations here depend on how the building’s land ownership and holding registration were set up. It’s worth confirming directly rather than guessing.

The key point to remember: paying holding tax does not automatically mean your land development tax is settled, and paying land development tax does not automatically cover your holding tax. They’re tracked in separate systems, by separate authorities, with separate receipts. If you’ve only ever paid one of the two, it’s worth checking whether the other applies to you as well.

Land tax vs holding tax: which one do I need to pay?

A simple way to think through it:

Do you own land? Check your land development tax status through ldtax.gov.bd.

Is your property or holding within a City Corporation, Pourashava, or municipality’s taxable jurisdiction? Check your holding tax status with that local authority.

If both apply to your situation, and for most house and land owners in urban areas, they do, you need to track and pay both separately.

Frequently asked questions

Is land development tax the same as holding tax?

No. Land development tax is a land charge run by the land administration system. Holding tax is a municipal property levy run by your local City Corporation, Pourashava, or municipality.

Do I have to pay both land tax and holding tax?

Possibly, depending on your property and location. Many house and land owners in urban areas owe both.

What is khajna?

Khajna is the commonly used, older term for land development tax, still widely used in everyday conversation, especially outside Dhaka.

What is a dakhila?

A dakhila is the official receipt you get after paying land development tax. It’s needed for mutation, ownership proof, and property transactions.

Who collects land development tax in Bangladesh?

The land administration system under the Ministry of Land, through the ldtax.gov.bd portal.

Who collects holding tax in Bangladesh?

Your local City Corporation (DNCC or DSCC in Dhaka), Pourashava, or municipality, depending on where your property is located.

Can I pay land development tax online?

Yes, through the official Land Development Tax portal.

How is holding tax calculated?

Generally as your property’s assessed or annual rental value, multiplied by the applicable local rate, plus any municipal service components your local authority adds. The exact figure depends on your specific local authority.

Does paying holding tax replace land tax?

No. They’re separate systems with separate obligations. Paying one doesn’t settle the other.

A closing note on rates and accuracy

We’ve deliberately avoided quoting specific tax rates or percentages throughout this article. Land development tax categories and holding tax rates both get revised over time, and vary by land type and by local authority respectively. Before making a payment, verify the current amount directly with the relevant office, either through ldtax.gov.bd for land tax or your local City Corporation, Pourashava, or municipal office for holding tax.

Sources and official references: Land Development Tax portal (ldtax.gov.bd) · Dhaka North City Corporation · Dhaka South City Corporation · Bangladesh Laws — Land Development Tax Act 2023, Act No. 31 of 2023

Last updated: August 2026. Reviewed by the GLG Assets content team.