What is the tax on buying property in Pakistan for 2026-27?

The Finance Act 2026 sets Section 236K advance tax on purchase of immovable property at 1.25% of fair market value. On a Rs. 10 million property, this equals Rs. 125,000. Provincial stamp duty, mutation fee, and registration charges are separate.

Is Section 236K the total cost of buying property?

No. Section 236K is only the federal advance income tax on purchase. Buyers may also pay provincial stamp duty, mutation or transfer fee, registration charges, legal fee, and agent commission depending on province and transaction type.

Do I need to declare property purchased in my FBR return?

Yes. A property purchase should be added to your wealth statement in the annual FBR return. Keep the sale deed, payment proof, registration documents, and tax challans.

Tax on Buying Property Pakistan 2026-27

Tax on Buying Property in Pakistan 2026-27

Under the Finance Act 2026, the enacted federal advance tax on buying immovable property is 1.25% under Section 236K, applied on fair market value. This does not include provincial stamp duty, mutation fee, registration charges, or professional fees.

Quick Answer Last updated: July 1, 2026

Section 236K Buyer Advance Tax

Finance Act Rate 1.25%

Applied on fair market value of immovable property under Section 236K.

Example on Rs. 10M Rs. 125,000

Rs. 10,000,000 x 1.25% = Rs. 125,000 federal advance tax.

Budget status: The 1.25% rate is based on the Finance Bill 2026 proposal. Confirm the final Finance Act 2026 and FBR rate card before transfer.

What a Buyer May Pay

Charge	Rate / Basis	Authority
Section 236K advance tax	1.25% of fair market value	FBR / Federal
Stamp duty	Varies by province and property type	Provincial
Mutation / transfer fee	Varies by local authority	Provincial / Local
Registration / documentation cost	Varies	Registrar / Local

Buyer Tax Examples at 1.25%

Property Fair Market Value	Finance Act 236K Tax
Rs. 5,000,000	Rs. 62,500
Rs. 10,000,000	Rs. 125,000
Rs. 20,000,000	Rs. 250,000
Rs. 50,000,000	Rs. 625,000

After Buying: What to Do in Your Return

Keep the sale deed, registration papers, payment proof, and 236K challan.
Add the property to your IRIS wealth statement as an immovable property asset.
Record the source of funds used for purchase, such as salary savings, business income, gift, inheritance, or loan.
Keep provincial payment receipts because FBR may ask for proof later.

Official Sources

Finance DivisionBudget and Finance Act 2026 documents. FBRFinal rates, valuation tables, and forms. Selling PropertySee the enacted 236C seller tax.