Property Taxes in Pakistan at a Glance
| Tax / Charge | Who Pays | Authority | Current Planning Rate / Basis |
|---|---|---|---|
| Section 236K advance tax on purchase | Buyer | FBR | 1.25% of fair market value |
| Section 236C advance tax on sale/transfer | Seller | FBR | 2.75% of gross consideration |
| Capital Gains Tax | Seller | FBR | Based on actual gain and holding period |
| Stamp duty / mutation / registration | Usually buyer | Provincial / Local | Varies by province and property type |
| Annual property tax / UIPT | Owner | Provincial | Based on provincial assessment rules |
Important distinction: Finance Act 2026 property changes
discussed here are federal income-tax transaction provisions. They do
not automatically change provincial stamp duty or annual property tax.
Section 7E omitted: Finance Act 2026 removes the
federal deemed-income provision for capital assets. This is separate
from transaction taxes, CGT on an actual gain, and provincial charges.
All Property Tax Guides
Buyer
Tax on Buying Property
Section 236K buyer advance tax at 1.25% of fair market value.
Read guide ->
Seller Tax on Selling Property
Section 236C seller advance tax at 2.75% of gross consideration.
Read guide ->
CGT Capital Gains Tax
CGT on actual profit, holding period treatment, and inherited property notes.
Read guide ->
ATL Status Filer vs Non-Filer Property Tax
What changed from older filer/non-filer property WHT tables and what to verify now.
Read guide ->
Example: Buy and Sell a Rs. 10M Property
Buyer 236K Rs. 125,000
1.25% of Rs. 10,000,000 fair market value.
Seller 236C Rs. 275,000
2.75% of Rs. 10,000,000 gross consideration.
Total federal transaction advance tax on a same-value buy-and-sell cycle would be Rs. 400,000 before CGT and before provincial charges.
What Still Needs Verification Before a Deal?
- Final Finance Act 2026 wording and FBR rate card.
- FBR fair market valuation for the exact area and property type.
- Province-specific stamp duty, mutation fee, and registration charges.
- Seller's purchase documents and holding period for CGT calculation.
- ATL/NTN status of both parties, because banks and registrars may still require taxpayer details.