For 2026-27 (tax year 2027, from 1 July 2026), the FBR collects 2.75% of the sale price from the seller (section 236C) and 1.25% of the fair market value from the buyer (section 236K). Both are flat rates. Both are advance taxes, so they are adjusted against your income tax rather than lost.
That applies to anyone on the Active Taxpayers List (ATL). If you are not on the ATL, the seller pays 11.5% and the buyer pays 10.5% to 18.5%, depending on the property value. The old tax on deemed income from property (section 7E) is gone, and the higher rates for late filers have been removed.
Provincial charges (stamp duty, registration and mutation fees) come on top and are set by each province. This article covers the federal taxes in full and shows where to confirm the provincial ones.
To work out your own numbers, use the property tax calculator. It shows both advance taxes, the capital gains tax and what the same deal cost last year.
How Much Property Tax Do You Pay in 2026-27?
| Tax | Who pays | Rate for 2026-27 (on the ATL) | Charged on |
|---|---|---|---|
| Section 236C | Seller | 2.75% | Gross amount of the consideration received |
| Section 236K | Buyer | 1.25% | Fair market value of the property |
Both rates come from Finance Act 2026, which replaced Division X and Division XVIII of Part IV of the First Schedule. FBR Circular 2 of 2026-27 describes them as flat rates “in place of the earlier slab-based higher rates”.
The person who registers, records or attests the transfer collects the tax at that moment. In practice that is the sub-registrar, or the housing society, authority or developer that handles the transfer.
What changed from last year
| Item | Tax year 2026 (to 30 June 2026) | 2026-27 |
|---|---|---|
| Seller, 236C, on the ATL | 4.5% up to Rs 50 million, 5% from Rs 50 to 100 million, 5.5% above Rs 100 million | Flat 2.75% |
| Buyer, 236K, on the ATL | 1.5% up to Rs 50 million, 2% from Rs 50 to 100 million, 2.5% above Rs 100 million | Flat 1.25% |
| Late filers on the ATL (236C) | 7.5%, 8.5% or 9.5% by value band | Same as other ATL filers |
| Late filers on the ATL (236K) | 4.5%, 5.5% or 6.5% by value band | Same as other ATL filers |
| Tax on deemed income, section 7E | 20% under Division VIIIC | Omitted |
The last-year figures are from the Income Tax Ordinance as updated to 20 February 2026. The late-filer change comes from the omission of rule 1A of the Tenth Schedule, which Circular 2 of 2026-27 says abolished the relatively higher rates.
How Much Do Non-Filers Pay on Property?
The Tenth Schedule of the Ordinance sets separate, much higher rates for people not on the Active Taxpayers List. The Finance Act 2026 omitted only rule 1A and part of rule 10 of that Schedule. It did not change the non-filer rates below, so they still stand in the Ordinance text.
| Tax | Rate if not on the ATL |
|---|---|
| 236C, seller | 11.5% of the gross consideration |
| 236K, buyer, value up to Rs 50 million | 10.5% |
| 236K, buyer, Rs 50 million to Rs 100 million | 14.5% |
| 236K, buyer, above Rs 100 million | 18.5% |
So the gap between filer and non-filer is now wider than before the cut. On a Rs 1 crore purchase, the buyer pays Rs 125,000 on the ATL and Rs 1,050,000 off it. Becoming a filer before you buy or sell is the single biggest saving. The steps are in Filer vs Non-Filer in Pakistan 2026-27.
One more option exists for individuals. Under section 182A, an individual who files late can be added back to the ATL by paying a surcharge. The Finance Act 2026 added a way out of that surcharge for an individual who gives the Commissioner an undertaking not to buy or acquire any property for six months.
Who is exempt or treated differently
The Ordinance sets out several cases. These are the ones that matter for ordinary buyers and sellers.
- Dependants of a Shaheed and similar groups (236C): the tax is not collected from a seller who is a dependant of a Shaheed of the Pakistan Armed Forces, or of a person who dies in service of the Armed Forces or of the federal or provincial government. The proviso also covers war-wounded persons, ex-servicemen and serving or former government employees, but only for the first sale of property allotted by the government or an authority in recognition of that service.
- Overseas Pakistanis using FCVA or NRVA accounts: a non-resident holding a POC, NICOP or CNIC who bought the property through a Foreign Currency Value Account or an NRP Rupee Value Account pays 236C as a final tax that replaces capital gains tax. A buyer in the same position pays 236K as a final tax.
- Government schemes for expatriates (236K): section 236K does not apply to a scheme run by the federal or a provincial government, or an authority set up under federal or provincial law, for overseas Pakistanis, provided payment comes in foreign exchange through normal banking channels.
- Installment purchases (236K): if you pay by installments and tax is collected with them, no further 236K is collected at transfer for the amount already paid.
- Same-year resale (236C): if you buy and sell a property within the same tax year, the 236C collected is a minimum tax and not simply adjustable.
How Is Capital Gains Tax on Property Charged?
Separate from the advance tax, the profit on a sale is taxed as capital gain under section 37(1A). The gain is the sale price minus your cost. The rate depends on when you acquired the property and, for older purchases, how long you held it. The rates sit in Division VIII of Part I of the First Schedule, and the Finance Act 2026 did not change them.
Property acquired on or before 30 June 2024
| Holding period | Open plot | Constructed property | Flat |
|---|---|---|---|
| Up to 1 year | 15% | 15% | 15% |
| Over 1 up to 2 years | 12.5% | 10% | 7.5% |
| Over 2 up to 3 years | 10% | 7.5% | 0% |
| Over 3 up to 4 years | 7.5% | 5% | 0% |
| Over 4 up to 5 years | 5% | 0% | 0% |
| Over 5 up to 6 years | 2.5% | 0% | 0% |
| Over 6 years | 0% | 0% | 0% |
In the Schedule, the cells after the zero for a flat or constructed property are shown as dashes. Read them as no tax, since the rate has already reached zero.
Property acquired on or after 1 July 2024
For these properties the holding period does not change the rate. If you are on the ATL on the date of sale, the rate is 15%. If you are an individual not on the ATL, the normal income tax slab rates apply, but the tax cannot be less than 15% of the gain. You can see how slab rates work in the salary tax calculator.
Inherited property
The Finance Act 2026 added section 76(8A). When an individual inherits immovable property, the cost in their hands is the fair market value of the property at the time it is transferred to them. Selling it later, the gain is measured from that value.
FED on property and the removal of 7E
The Finance Act 2026 contains no provision on federal excise duty for the sale or purchase of immovable property, and the Ordinance has none either. If an agent quotes you an excise duty on a transfer, ask for the notification it comes from and check it against your province or Islamabad’s registration office.
Section 7E taxed a deemed income from property. The Finance Act 2026 omitted it, along with Division VIIIC (the 20% rate) and the references to 7E in section 8. FBR Circular 2 of 2026-27 confirms the tax “has been abolished”. The omission takes effect with the Act on 1 July 2026.
Provincial charges: stamp duty, CVT, registration and mutation
These are not FBR taxes. Each province or Islamabad sets its own stamp duty, registration fee and mutation (intiqal) fee, and the rate often depends on the valuation table of the district. They change in provincial budgets, so check the rate with the sub-registrar before you sign.
| Province | 2026 budget | Where to confirm the rate |
|---|---|---|
| Punjab | A Stamp (Amendment) Ordinance was reported in April 2026, but its gazette text is not on the official law site yet, so no rate is given here. | Stamp Act schedule at punjablaws.gov.pk, and the Punjab Land Records Authority at punjab-zameen.gov.pk |
| Sindh | The Sindh Finance Act 2026 (Sindh Act No. XX of 2026, in force from 1 July 2026) changes the Sindh sales tax on services and agricultural income tax. It contains no Stamp Act amendment. | Provincial Assembly of Sindh (pas.gov.pk), Sindh Excise, Taxation and Narcotics Control Department |
| Khyber Pakhtunkhwa | The KP Finance Act 2026 (gazette of 2 July 2026) amends the urban immovable property tax, motor vehicle tax and other laws. It contains no stamp duty change. | Finance Department KP (finance.gkp.pk), the KP Board of Revenue |
| Islamabad (ICT) | The federal Finance Act 2026 has no stamp duty or property transfer change for the ICT. | ICT Revenue and registration offices, and the federal law sites |
Capital value tax (CVT) is also a charge to ask about. No province has an official 2026-27 CVT schedule online that we could check, so CVT rates are left out. The worked example below leaves out all provincial charges for the same reason.
Worked example: a Rs 1 crore property
These are assumptions for the example only. The price is Rs 1 crore (Rs 10,000,000), the fair market value for 236K is also Rs 1 crore, and both buyer and seller are on the ATL. The seller bought the property in 2025 for Rs 80 lakh, so the gain is Rs 20 lakh.
| Tax | Who | Working | Amount |
|---|---|---|---|
| 236C advance tax | Seller | 2.75% of Rs 10,000,000 | Rs 275,000 |
| 236K advance tax | Buyer | 1.25% of Rs 10,000,000 | Rs 125,000 |
| Capital gains tax | Seller | 15% of Rs 2,000,000 (bought after 1 July 2024) | Rs 300,000 |
The seller’s 236C of Rs 275,000 is adjustable against the Rs 300,000 capital gains tax, so the extra tax left to settle in the return is Rs 25,000 in this simplified case, before any other income or adjustments. The buyer’s Rs 125,000 is also adjustable against their income tax, but only if they file a return and have enough tax liability to absorb it.
The same deal last year would have cost the seller Rs 450,000 in 236C and the buyer Rs 150,000 in 236K. Off the ATL in 2026-27, the seller pays Rs 1,150,000 in 236C and the buyer pays Rs 1,050,000 in 236K. If you are weighing property against another asset, the real estate versus DCR comparison sets a flat’s rent against a REIT’s payout. Add these taxes to the flat side before you compare.
Checklist before you transfer
- Check both parties on the ATL before the transfer date.
- Confirm the fair market value used for 236K, not just the deed price.
- Ask which category the property is in (open plot, constructed property or flat) and the acquisition date, since that sets the capital gains rate for older purchases.
- Keep the receipt for the advance tax. You need it to claim the adjustment in your return.
- Ask the sub-registrar for the stamp duty, registration and mutation amounts in writing.
Common questions
Is the 2.75% on the profit or the full price?
On the full amount of the consideration received, not on the profit. The profit is taxed separately as capital gain, and the 2.75% is adjusted against that tax.
Do late filers still pay more?
Not on property. FBR Circular 2 of 2026-27 says the higher 236C and 236K rates for ATL persons who filed after the due date have been abolished. The test is now whether you are on the ATL.
Is the tax on the deed value or the market value?
236C is on the gross amount of the consideration received. 236K is on the fair market value of the property. They can differ, which is why the buyer should ask what value the registrar used.
Is there any tax when I inherit a property?
The Finance Act 2026 clarifies that transmission of property on death, including a family settlement after a death, is not treated as a disposal. The cost for a later sale becomes the fair market value at transfer under section 76(8A).
Does the 7E deemed income tax still apply to my plot?
No. Section 7E is omitted from 1 July 2026. One caution: the FBR’s updated copy of the Ordinance still mentions 7E in section 236C(2A), so ask the registrar whether any 7E clearance is still being asked for.
Related
Sources
Federal rates: Finance Act 2026, FBR Circular 2 of 2026-27 and the Income Tax Ordinance 2001 (sections 236C, 236K, 37, 7E and the Tenth Schedule). Provincial: Sindh Finance Act 2026 and the KP Finance Act 2026. Checked 22 October 2026.