Taxes and fees when buying or selling property in Pakistan (2026-27)
Work it out with the Property transfer tax calculator →
In 2026-27 every property deal carries two federal taxes: a filer buyer pays 1.25% of the value under section 236K and a filer seller pays 2.75% under section 236C. Non-filers pay between 10.5% and 18.5%. On top of these come provincial stamp duty, capital value tax and registration fees, and the seller may also owe capital gains tax on any profit.
Who pays which tax
Whoever registers, records or attests the transfer (the sub-registrar, a development authority, a housing authority or a housing society) is required by law to collect 236K from the buyer and 236C from the seller at the time of transfer. Both are adjustable: when you file your return, they count as tax already paid against that year’s income tax.
| Value | Buyer 236K, filer | Buyer 236K, non-filer | Seller 236C, filer | Seller 236C, non-filer |
|---|---|---|---|---|
| Up to Rs 50 million | 1.25% | 10.5% | 2.75% | 11.5% |
| Rs 50 – 100 million | 1.25% | 14.5% | 2.75% | 11.5% |
| Above Rs 100 million | 1.25% | 18.5% | 2.75% | 11.5% |
The band’s rate applies to the whole value, not just the part above the threshold. The Finance Act 2026 dropped the separate late-filer rates, so anyone on the Active Taxpayers’ List now pays the filer rate. In 2025-26 filer buyers paid 1.5% to 2.5% and filer sellers 4.5% to 5.5%.
Before the deal, both parties should check their names on the Active Taxpayers’ List on FBR’s website; the rate follows your status on the day of transfer.
FBR valuation vs DC rate
Tax is not charged only on the price written in the deed. Under section 68 of the Income Tax Ordinance, FBR can notify property values for specified areas, and has done so for many urban areas. Where FBR has not notified a value for an area, the value fixed by the Deputy Commissioner or provincial authority for stamp duty (the DC rate) is used. The value for 236K, 236C and capital gains cannot be lower than this. Provincial stamp duty is charged under each province’s own rules.
If the size is in marla or kanal, convert it with the marla calculator and multiply by the rate in the valuation table.
Capital gains tax
Under section 37(1A), the gain on selling property (sale value minus cost) is taxed as a capital gain, and the rate depends on when you bought it.
Property acquired on or after 1 July 2024
If you are on the Active Taxpayers’ List on the day you sell, the rate is 15% of the gain, whatever the holding period. Individuals and associations of persons not on the list pay their normal slab rates, but not less than 15%; companies pay the company rate.
Property acquired on or before 30 June 2024
| Holding period (years) | Open plot | Constructed property | Flat |
|---|---|---|---|
| ≤ 1 | 15% | 15% | 15% |
| 1 – 2 | 12.5% | 10% | 7.5% |
| 2 – 3 | 10% | 7.5% | 0% |
| 3 – 4 | 7.5% | 5% | 0% |
| 4 – 5 | 5% | 0% | 0% |
| 5 – 6 | 2.5% | 0% | 0% |
| > 6 | 0% | 0% | 0% |
The seller’s 236C is adjusted against this capital gains tax. If the property is bought and sold in the same tax year, 236C is a minimum tax. For non-resident Pakistanis (holding a NICOP, POC or CNIC) who bought through a Foreign Currency Value Account or NRP Rupee Value Account, 236C is the final tax in place of capital gains tax.
Provincial stamp duty, CVT and registration fees
These differ between Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan and Islamabad, and by urban or rural area and property type. We could not confirm the current rates from an official source, so we do not quote them here. Get your rate from the sub-registrar, the provincial Board of Revenue or your e-stamp challan. Housing societies and development authorities charge their own transfer fees on top. The buyer usually pays these, though the parties can agree otherwise.
Worked example: a Rs 15 million house
Say a house has an FBR value of Rs 15,000,000 and both parties are filers.
- Buyer’s 236K at 1.25%: Rs 187,500.
- Seller’s 236C at 2.75%: Rs 412,500.
- If both were non-filers, the buyer would pay Rs 1,575,000 and the seller Rs 1,725,000.
- If the seller bought the house in August 2024 for Rs 12,000,000, the gain is Rs 3,000,000 and capital gains tax at 15% is Rs 450,000. The Rs 412,500 paid at transfer is adjusted against it, leaving about Rs 37,500 to pay with the return.
- Had the same house been bought in 2020 (held more than four years), capital gains tax would be zero, and the 236C can be adjusted against other income tax in the return.
Add your province’s charges in the property transfer tax calculator. Buying on finance? See the instalment in the home loan calculator.
Steps of a transfer
- Check the title: registry deed, fard or society file, and that there are no dues or disputes on the property.
- Look up the FBR value and the DC rate and agree the price. Writing a lower price in the deed does not lower the tax.
- Both parties check their status on the Active Taxpayers’ List.
- Pay 236K and 236C as the registrar or society directs, and keep the receipts; they are your proof when you file.
- Pay provincial stamp duty, CVT and fees, then register the sale deed before the sub-registrar or complete the society transfer, and get the mutation (intiqal) entered where needed.
- After the tax year, file your return: the buyer shows the property in the wealth statement; the seller declares the gain and adjusts the 236C.
Common mistakes
- Under-declaring the price. Tax is charged on the FBR or DC value anyway, and a low declared price lowers your recorded cost, so your capital gain is bigger when you sell.
- Using last year’s rates. From 1 July 2026 filer rates are lower and flat, and the late-filer rate is gone.
- Treating 236C as the final tax. It is an advance; if your capital gains tax is higher, the balance is due with the return.
- Staying a non-filer. On a Rs 15 million deal a non-filer buyer pays over Rs 1.3 million more; filing a return to get on the list is usually far cheaper.
- Forgetting provincial charges. Budget for stamp duty, CVT and society fees before you agree the deal.
Frequently asked questions
What is the property transfer tax rate for filers in 2026-27?
A filer on the Active Taxpayers’ List pays 1.25% of the value as buyer (section 236K) and 2.75% as seller (section 236C), at any value. These flat rates were set by the Finance Act 2026 and apply from 1 July 2026.
How much more does a non-filer pay?
A buyer not on the Active Taxpayers’ List pays 10.5% up to Rs 50 million, 14.5% up to Rs 100 million and 18.5% above that, on the whole value. A non-filer seller pays 11.5%. On a Rs 15 million house that is Rs 1,575,000 for the buyer instead of Rs 187,500.
Is tax charged on the DC rate or the FBR rate?
Under section 68 of the Income Tax Ordinance, FBR’s notified valuation applies where FBR has notified one for the area; otherwise the value fixed for stamp duty (the DC rate) is used. The value used for 236K, 236C and capital gains cannot be lower than this, even if the agreed price is lower.
Do I pay capital gains tax if I sell after many years?
It depends on when you bought. For property acquired on or before 30 June 2024, the rate falls with the holding period and reaches zero after 2 years for flats, 4 years for houses and other constructed property, and 6 years for open plots. For property acquired from 1 July 2024, filers pay 15% of the gain whatever the holding period.
Is the 236C tax the same as capital gains tax?
No. 236C is advance tax collected at transfer on the full value. It is adjustable against your income tax, including capital gains tax, when you file your return. If you buy and sell the property within the same tax year, it becomes a minimum tax and is not refunded.
What are stamp duty and CVT in my province?
Stamp duty, capital value tax and registration fees are set by each province (and by ICT for Islamabad) and differ by area and property type. We could not confirm the current rates from an official source, so take them from your sub-registrar, the provincial Board of Revenue or your e-stamp challan.
Calculators for this guide
- Property transfer tax calculatorWork out the buyer’s 236K and seller’s 236C advance tax on a property deal for 2026-27, for filers and non-filers, plus stamp duty and fees.
- Marla converterConvert Marla, Kanal, square feet, square yards and acres instantly.
- Home loan calculatorWork out the monthly installment, total markup and full cost of a home loan in Pakistan from property price, down payment, rate and tenure.
Sources
- Income Tax Ordinance 2001, amended up to 30 June 2026 (FBR): s.37(1A), s.68, s.236C, s.236K, First Schedule Part I Division VIII and Part IV Divisions X and XVIII, Tenth Schedule
- FBR Withholding Tax Rates Card, tax year 2027 (Finance Act 2026)
- FBR Withholding Tax Rates Card, tax year 2026 (Finance Act 2025)
This guide explains the rules for general information. It is not official, legal or tax advice. Rules change, so check the official source or a qualified professional before acting. See how we check our information.