In short
A buyer on the Active Taxpayers List pays 1.25% advance tax under section 236K on the FBR value; a non-filer pays 10.5%, 14.5% or 18.5% by value band. The seller pays 2.75% under 236C (11.5% non-filer). Provincial stamp duty and registration add about 2% in Punjab. Capital gains on property bought from 1 July 2024 are taxed at a flat 15% for filers; earlier purchases use a holding-period scale falling to 0%.
Buying a plot or house in Pakistan triggers three layers of charges: federal advance tax collected before the transfer, provincial stamp duty and registration, and the housing society’s own transfer fee. Selling later brings a second advance tax and capital gains tax on the profit. This guide sets out each charge for Tax Year 2027 (1 July 2026 to 30 June 2027), explains why being on the Active Taxpayers List (ATL) is the single largest saving available, and works through a PKR 15 million plot from purchase to sale.
Open the property purchase cost calculator →
Advance tax on the buyer: section 236K
The registrar or housing society collects advance income tax from the buyer under section 236K before recording the transfer. The rate depends on whether the buyer appears on the ATL, and for non-filers on the value of the property.
| Property value (FBR) | Filer (on ATL) | Non-filer |
|---|---|---|
| Up to PKR 50 million | 1.25% | 10.5% |
| PKR 50 million to 100 million | 1.25% | 14.5% |
| Above PKR 100 million | 1.25% | 18.5% |
The single matching band applies to the whole value, not in slices. The base is the FBR valuation-table value for the area, or the declared price if higher; both are usually below market price. For filers the tax is adjustable: it is set against the year’s income tax in the return, and any excess is refundable. The Finance Act 2026 cut the filer rate from the 2025-26 bands of 1.5%, 2% and 2.5% and removed the separate “late filer” category. Since 2025 non-filers are also barred from registering property above specified values, so filing a return before the transfer date solves both problems.
Advance tax on the seller: section 236C
The seller pays advance tax under section 236C on the gross consideration or FBR value, whichever is higher: 2.75% for a filer and 11.5% for a non-filer, with no value bands. For 2025-26 the filer rate was 4.5% to 5.5%. The 236C payment is credited against the capital gains tax due in the return, so for most filers it is a prepayment rather than an extra tax. Transfers by gift to close relatives for no consideration are generally outside both 236C and 236K, though provincial stamp duty may still apply. The 236C/236K property tax calculator gives the federal tax for either side.
Stamp duty, registration and society fees
Provincial duties are charged on the DC (collector) value, which is separate from the FBR value and also usually below market. In Punjab urban property commonly carries 1% stamp duty plus 1% registration fee, with capital value tax (CVT) abolished in the province; rural rates are lower. Sindh and Khyber Pakhtunkhwa publish their own schedules, so enter your province’s current rates rather than assuming Punjab’s. Housing societies and TMAs charge a transfer fee of their own, from roughly PKR 50,000 to several hundred thousand in schemes such as DHA or Bahria depending on plot size and phase, and agents conventionally take 1% from each side. Our rules file does not record CVT or FED rates for property, so those are left to the provincial schedule.
Capital gains tax when you sell
Capital gains tax (CGT) is charged on the profit, which is sale price less cost. Cost includes the purchase price, stamp duty, registration and transfer fees, brokerage and documented improvements; routine repairs and loan interest do not count, and there is no inflation indexation. The Finance Act 2024 split the regime by acquisition date.
| Holding period | Open plot | Constructed property | Flat |
|---|---|---|---|
| Acquired on or after 1 July 2024 (filer) | |||
| Any | 15% | 15% | 15% |
| Acquired on or before 30 June 2024 | |||
| Up to 1 year | 15% | 15% | 15% |
| 1 to 2 years | 12.5% | 10% | 7.5% |
| 2 to 3 years | 10% | 7.5% | 0% |
| 3 to 4 years | 7.5% | 5% | 0% |
| 4 to 5 years | 5% | 0% | 0% |
| 5 to 6 years | 2.5% | 0% | 0% |
| Over 6 years | 0% | 0% | 0% |
For post-July-2024 assets a non-filer pays normal slab rates on the gain with a 15% floor, which reaches 45% on large gains. Inherited property takes the original owner’s cost and acquisition date. Property losses cannot be set off against other income. The capital gains tax calculator picks the regime from your purchase and sale dates.
Worked example: PKR 15 million plot
Open plot, FBR value equal to the PKR 15,000,000 price, Punjab urban, PKR 50,000 society fee, 1% agent each side, PKR 30,000 legal.
Buying as a filer. 236K = 15,000,000 × 1.25% = PKR 187,500. Stamp 1% + registration 1% = PKR 300,000. Society PKR 50,000, agent PKR 150,000, legal PKR 30,000. Total on top of the price = PKR 717,500, 4.78% of the price.
Buying as a non-filer. 236K = 15,000,000 × 10.5% = PKR 1,575,000. Same other costs. Total = PKR 2,105,000, 14.03% of the price. Filing a return before the transfer saves PKR 1,387,500 on this one transaction.
Selling three years later for PKR 21,000,000, bought after 1 July 2024, filer. Cost base = 15,000,000 + 300,000 + 50,000 + 30,000 = PKR 15,380,000 (agent commission is also allowable if documented). Gain = 21,000,000 − 15,380,000 = PKR 5,620,000. CGT at 15% = PKR 843,000. 236C paid at transfer = 21,000,000 × 2.75% = PKR 577,500, credited against the CGT, leaving PKR 265,500 to pay with the return. Had the plot been bought before July 2024 and held three to four years, the open-plot rate would be 7.5% = PKR 421,500. A non-filer with PKR 3,000,000 of other income would pay slab rates on the gain, about PKR 2,379,000, plus 11.5% 236C = PKR 2,415,000 at transfer.
Rental income while you hold it
If the property is let, rent is taxed as a separate block at its own slabs for individuals: nil on the first PKR 300,000 of gross annual rent, 5% to PKR 600,000, PKR 15,000 plus 10% to PKR 2 million, and PKR 155,000 plus 25% above that. Company, AOP and government tenants withhold at those rates under section 155; individual tenants do not. Repairs up to one fifth of rent, insurance, local property taxes and interest on a loan used to buy the property are deductible in the return. The rental income tax calculator works the slabs and deductions. The deemed-income tax under section 7E was struck down and omitted by the Finance Act 2026, so nothing is charged on a vacant or self-occupied property.
What people get wrong
- Using market value for the tax. Federal advance tax uses the FBR valuation table (or declared price if higher); provincial duties use the DC rate. Both are usually lower than what you actually paid.
- Treating 236K and 236C as final taxes. For filers both are adjustable: 236K against income tax, 236C against CGT, with refunds through the return.
- Assuming property held over six years is always tax-free. That applies only to property acquired on or before 30 June 2024. Later purchases pay 15% however long they are held.
- Leaving filing until after the transfer. ATL status is checked on the transfer date; a return filed the week before is what cuts 236K from 10.5% to 1.25%.
- Forgetting the cost base. Stamp duty, registration, transfer fees and documented improvements reduce the gain; keep every receipt from the purchase.
Frequently asked questions
How much tax does a filer pay to buy property in 2026-27?
1.25% of the FBR value under section 236K, plus provincial stamp duty and registration (commonly 1% + 1% in urban Punjab) and the society’s transfer fee.
Can a non-filer buy property at all?
Restrictions introduced in 2025 bar non-filers from registering property above specified values; below those they pay 10.5% to 18.5% advance tax. Becoming a filer before the transfer removes both problems.
Do overseas Pakistanis get the filer rate?
Those holding a POC or NICOP who file returns are treated as filers; non-resident non-filers can apply for the ATL rate through the IRIS exemption route.
Is 236C the same as capital gains tax?
No. 236C is an advance tax of 2.75% (filer) collected at transfer; CGT is calculated on the actual gain in the return and the 236C payment is credited against it.
Is there capital gains tax on inherited property?
Not on the inheritance. When the heir sells, the gain is measured from the original owner’s cost and the holding period runs from the original acquisition date.
Sources
- FBR — Withholding Tax Rates Card TY2027 (Finance Act 2026), sections 236C, 236K and 155 (checked 26 October 2026).
- PwC Worldwide Tax Summaries — Pakistan, capital gains under s.37(1A) (checked 26 October 2026).
- KPMG — A Brief of Finance Act 2026, non-salaried slabs and omission of s.7E (checked 26 October 2026).
- Punjab Board of Revenue and Sindh Board of Revenue stamp and registration schedules — provincial inputs; the 1% + 1% Punjab urban figure is the common default on our tool page, not a verified rate.