What Changed in the 2026-27 Budget?
The federal Finance Act 2026 sets new rates for the two main property transaction advance taxes collected by FBR. These are not the same as stamp duty, transfer fee, mutation fee, or annual provincial property tax.
Status: These are enacted FY 2026-27 Finance Act rates.
Use them for planning, but verify the final Finance Act 2026 and FBR
rate card before completing a property transfer.
Finance Act Property Transaction Rates 2026-27
| Tax / Charge | Who Pays | Finance Act Rate | Basis |
|---|---|---|---|
| Advance tax on purchase (Section 236K) | Buyer | 1.25% | Fair market value |
| Advance tax on sale/transfer (Section 236C) | Seller | 2.75% | Gross consideration received |
| Capital Gains Tax | Seller | Depends on holding period | Actual gain/profit |
| Stamp duty / mutation / transfer fee | Usually buyer | Varies by province | Provincial rules |
| Annual property tax / UIPT | Owner | Varies by province | Annual value / local assessment |
Example: Rs. 10 Million Property
Buyer Federal Advance Tax Rs. 125,000
1.25% of Rs. 10,000,000 under Section 236K.
Seller Federal Advance Tax Rs. 275,000
2.75% of Rs. 10,000,000 under Section 236C.
These amounts are federal advance income taxes only. The buyer may still pay provincial stamp duty, mutation fee, and other registration costs. The seller may still need to calculate CGT on profit in the annual return.
All Property Tax Guides
Hub Guide
Property Tax in Pakistan Explained
Complete overview of buyer tax, seller tax, CGT, stamp duty, mutation fee, and annual property tax.
Read guide ->
Buyer Guide Tax on Buying Property in Pakistan
Enacted FY 2026-27 Section 236K buyer advance tax: 1.25% of fair market value.
Read guide ->
Seller Guide Tax on Selling Property in Pakistan
Enacted FY 2026-27 Section 236C seller advance tax: 2.75% of gross consideration.
Read guide ->
CGT Guide Capital Gains Tax on Property
CGT on actual profit, holding-period treatment, inherited property notes, and IRIS declaration.
Read guide ->
Status Guide Filer vs Non-Filer Property Tax
How ATL status still matters, and what changed from older property WHT tables.
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