When you buy or sell property in Pakistan, the price is only part of the cost. On top of it, you pay several taxes. Many buyers and sellers do not plan for these, and then get a shock at the time of transfer. This guide explains the main property taxes for 2026 in simple words, so you know what to expect before you make a deal.
I am Muhammad Junaid, real estate advisor and founder of Pak Imlaak, based in Lahore. Taxes are one of the topics I get asked about the most, and also one of the topics where I see people lose the most money, not because the taxes are unfair, but because nobody explained them clearly before the deal was signed. I wrote this guide so that does not happen to you.
Quick answer: When buying, you mainly pay advance tax under Section 236K plus stamp duty and other provincial fees. When selling, you pay advance tax under Section 236C and possibly Capital Gains Tax (CGT) on your profit. If you own property above a certain value, Section 7E may also apply each year. The single biggest factor in how much you pay is your filer status. Filers pay far less than non-filers.
Key takeaways
- The buyer pays 236K; the seller pays 236C. Both are advance taxes collected at transfer.
- Filers pay much less than non-filers. The gap can be huge, sometimes lakhs or even crores on big deals.
- Sellers may also pay Capital Gains Tax (CGT) on their profit when they sell.
- Section 7E is a yearly tax that can apply to higher-value property.
- Taxes are calculated on the FBR value, not always the price you agree privately. Always check this first.
- Getting on the filer list before you buy is the easiest way to save money.
- Each tax below has its own detailed guide: 236K and 236C, capital gains tax, stamp duty, and Section 7E.
First, understand filer status (this affects everything)
Before looking at any rate, you need to understand one thing: your tax status. In Pakistan, there are now three types of taxpayers, and your property tax depends heavily on which one you are.
- Filer (Active Taxpayer): You filed your income tax return on time and your name is on the Active Taxpayer List (ATL). You pay the lowest rates.
- Late filer: You filed, but late. You pay more than a filer, but usually less than a non-filer.
- Non-filer: You are not on the ATL. You pay the highest rates, often several times more.
You can check your status on the FBR Active Taxpayer List. The lesson is simple: become a filer before you buy or sell, because the saving is large.
Tax when buying property: Section 236K
Section 236K is the advance tax the buyer pays at the time of purchase. It is collected by the registrar, housing society, or transfer office handling the deal. For a full breakdown, see our detailed guide on 236K and 236C advance tax.
A few important points:
- The tax is calculated on the FBR value of the property, not the private price you agreed. So always check the FBR value and DC value before paying token money.
- The rate depends on the property value and your filer status. As a general guide for 2026, filer rates start low (around 1.5% to 3.5% for many deals) while non-filer rates are much higher (rising well into double digits on higher-value property).
- 236K is adjustable. This means when you file your yearly tax return, you can adjust this amount against your total tax. It is not money lost if you are a filer.
There is also a trap for non-filers. Under Section 111, if a non-filer buys property above a certain value, the FBR can ask you to prove your source of income. If you cannot, you may face a heavy penalty. This is another strong reason to be a documented filer.
Tax when selling property: Section 236C
Section 236C is the advance tax the seller pays at the time of sale. Like 236K, the rate depends on the value slab and your filer status, and it is also adjustable against your yearly tax.
For 2026, filer sellers generally pay a low rate, while non-filer sellers pay more (the non-filer seller rate is commonly capped around 10%). The Finance Act 2025 also introduced an exemption from 236C on the sale of one property under strict conditions, such as the property being in your personal use and properly declared in your wealth statement for many years. If you think this may apply to you, confirm the exact conditions with a tax professional.
Capital Gains Tax (CGT): tax on your profit
This section is a summary. Our full guide on capital gains tax on property goes deeper.
CGT is different from 236C. While 236C is a transaction tax, CGT is a tax on the profit you make when you sell, not on the full sale price.
The rules changed on 1 July 2024, so the date you bought matters:
- Property bought on or after 1 July 2024: Filers pay a flat 15% CGT on the gain, no matter how long they held it. Non-filers can pay more, on a scale that rises with value.
- Property bought before July 2024: The older system still applies. Here the tax reduces the longer you hold, and can reach 0% after several years (often around 4 to 6 years, depending on the property type).
One useful point: the 236C you paid as a seller can be adjusted against your CGT, so you are not taxed twice on the same amount.
Section 7E: the yearly tax on higher-value property
For the complete picture, see our dedicated guide on Section 7E deemed income tax.
Section 7E is a federal tax that many people miss. The idea behind it is that if you own property, the government treats it as if it earns a certain income, and taxes that.
In simple terms, for property with an FBR value above PKR 25 million, the effect is roughly 1% of the FBR value paid each year. You also cannot sell a property without a Section 7E Certificate (Form A) from FBR.
Some property is exempt, for example one main home or holding under the threshold, but the rules are specific. If you own higher-value property, check your 7E position so it does not block a future sale.
Provincial taxes: stamp duty and registration
Our guide on stamp duty rates by province lists these in detail.
The taxes above are federal. On top of them, the provinces charge their own taxes at the time of transfer. These are usually paid by the buyer.
- Stamp duty: A tax on the legal document of ownership. The rate is set by each province, so Punjab, Sindh, and Islamabad differ. In 2026, Punjab moved toward lower and more uniform stamp duty (for example, reducing rural stamp duty to 1%).
- Registration fee: A smaller fee for recording the deed.
- Capital Value Tax (CVT) and local fees: Apply on many transactions.
Unlike 236K and 236C, stamp duty and registration fees are not adjustable. They are a straight cost, so budget for them.
A simple example to show the filer gap
Imagine a buyer purchasing a plot with an FBR value of PKR 6 crore.
- As a filer, the 236K advance tax might be around 3.5%, which is about PKR 21 lakh.
- As a non-filer, the rate could be far higher, pushing the same tax close to PKR 96 lakh.
That is a difference of around PKR 75 lakh on a single deal, simply because of filer status. This is why we always tell buyers: get on the filer list first.
(These figures are an example to show the gap. Your exact tax depends on the current FBR value, the value slab, and the latest notified rates.)
How to plan your taxes before a deal
- Check your filer status on the FBR ATL, and become a filer before buying or selling.
- Find the FBR value and DC value of the property, since taxes are based on these, not the private price.
- Add up all costs: 236K (buyer) or 236C (seller), stamp duty, CVT, registration, and society transfer charges.
- For sellers, work out your CGT position based on when you bought.
- Keep a clear paper trail of every payment, so your wealth statement matches, and you avoid FBR notices.
Frequently asked questions
Who pays 236K and who pays 236C?
The buyer pays 236K when purchasing. The seller pays 236C when selling. Both depend on filer status and the property value.
Are these property taxes refundable?
236K, 236C, and CGT are adjustable, meaning you can adjust them against your yearly income tax when you file your return. Stamp duty and registration fees are not adjustable.
How much more does a non-filer pay?
A lot. On larger deals the difference can be lakhs or even crores. Becoming a filer before the deal is usually the biggest saving available.
What value is the tax calculated on?
Most federal property taxes are calculated on the FBR value, not the private price you agree with the other party. Always check the FBR value first.
Can overseas Pakistanis get the filer rate?
Yes. Overseas Pakistanis holding NICOP or POC can get the filer rate even as a non-filer, by following the FBR’s Overseas Pakistanis procedure and meeting the non-resident conditions. Using a Roshan Digital Account can also help. Our full guide for overseas Pakistanis buying property covers the process step by step.
This guide is for general information and reflects rules in effect as of June 2026. Tax rates, slabs, FBR valuations, and provincial fees change often, and the Budget 2026-27 may bring further changes. The figures here are general guidance, not exact rates for your deal. Always confirm current rates with the FBR, your provincial Sub-Registrar, and a qualified tax professional before completing any transaction.
