This guide explains property transfer tax in Pakistan for 2026-27. Buying or selling a house, plot or flat in Pakistan means paying tax on both sides of the deal — before the registry is even signed. This guide works out the full cost for 2026-27 (tax year 2027, under the Finance Act 2026): the federal withholding taxes under sections 236K and 236C, the provincial stamp duty and registration charges, and the separate capital gains tax on the seller’s profit.
What counts as property transfer tax?
There are three layers. First, the federal advance withholding tax: the buyer pays under section 236K and the seller pays under section 236C. Second, the provincial charges — stamp duty, transfer tax and registration or mutation fees — paid mostly by the buyer. Third, the housing society’s own transfer fee (DHA, Bahria, LDA and similar societies each set their own). The tax is worked out on the FBR valuation table or the DC rate, whichever is higher — not simply on the price written in the deed.
Buyer tax: Section 236K
The buyer pays advance tax on the fair market value of the property, collected by the registrar, development authority or housing society at the time of registration or allotment transfer. It is adjustable advance tax, so it counts against the buyer’s annual tax liability.
| Property value (fair market value) | Filer (on the ATL) | Non-filer |
|---|---|---|
| Up to Rs 50 million | 1.25% | 10.5% |
| Rs 50–100 million | 1.25% | 14.5% |
| Above Rs 100 million | 1.25% | 18.5% |
Seller tax: Section 236C
The seller pays advance tax on the gross sale price, at a flat rate whatever the property is worth.
| Gross consideration | Filer (on the ATL) | Non-filer |
|---|---|---|
| Any value | 2.75% | 11.5% |
What changed on 1 July 2026
The Finance Act 2026 replaced the old value-based slabs with flat filer rates: buyers paid 1.5% to 2.5% and sellers 4.5% to 5.5% before 1 July 2026; from 1 July 2026 a filer pays a flat 1.25% as buyer and 2.75% as seller. The separate late-filer property rates were abolished — anyone not active on the FBR Active Taxpayers List (ATL) on the day of transfer is charged non-filer rates. Many websites still show the old slabs, so check the date on any rate table you read.
Provincial stamp duty and registration charges (buyer pays)
| Province / area | Stamp duty | Other charges | Approx. total |
|---|---|---|---|
| Punjab | 1% (the rural rate was cut from 3% by the Punjab Stamp (Amendment) Act 2026) | 1% local government transfer tax + PLRA e-registration fee 0.1% (minimum Rs 3,600) | About 2.1% |
| Sindh | 2% of the valuation-table value or declared value, whichever is higher | 1% immovable property tax on the e-stamp; CVT of 2–3% on larger plots by size | About 3% + CVT |
| Islamabad | 1% for a filer buyer, 2% for a non-filer | CDA transfer fee 1% (cut from 3% in April 2026) | 2–3% |
| Khyber Pakhtunkhwa | 1% (cut from 2% in 2025) | District and TMA registration fees | About 1% + fees |
Punjab and Sindh no longer charge capital value tax (CVT) on most transfers, but some e-stamp challans still show a CVT line — the figure on your own challan is final. Housing society transfer fees and agent commission are extra and vary by society.
Worked example: a Rs 1 crore house in Punjab (filer)
Buyer: 236K at 1.25% = Rs 125,000; stamp duty at 1% = Rs 100,000; local government transfer tax at 1% = Rs 100,000; PLRA e-registration fee at 0.1% = Rs 10,000. Buyer total: Rs 335,000 (3.35% of the value).
Seller: 236C at 2.75% = Rs 275,000.
The same deal with a non-filer buyer: 236K at 10.5% = Rs 1,050,000, plus provincial charges of about Rs 210,000 = Rs 1,260,000 — Rs 925,000 more than a filer pays.
Capital gains tax is separate — do not confuse it with 236C
Section 236C is advance tax on the sale price. Capital gains tax (section 37 of the Income Tax Ordinance 2001) is tax on the seller’s profit, charged in the annual tax return on the higher of the declared price or the FBR valuation. The rate falls the longer the property was held:
| Holding period | Filer | Non-filer |
|---|---|---|
| Less than 1 year | 15% | 30% |
| 1 to 2 years | 12.5% | 25% |
| 2 to 3 years | 10% | 20% |
| Over 5 years | 0% | 0% |
Selling a self-occupied residential house is exempt from capital gains tax if the proceeds are used to buy another residential house within one year. Confirm the current holding-period table with FBR or your tax adviser before relying on it.
How to pay, step by step
- Check ATL status on the FBR Iris portal before the deal — being a filer saves lakhs.
- Get the FBR valuation and the DC rate for the property.
- Generate the PSID challan for 236K and 236C through FBR e-payment and pay at a bank.
- Buy e-stamp paper (in Punjab, through the e-Stamping portal) for stamp duty and transfer tax.
- Register the sale deed at the sub-registrar, pay the society transfer fee, and get the mutation recorded. Keep every challan and receipt.
5 mistakes that cost buyers and sellers money
- Letting ATL status lapse — non-filer rates cost up to fifteen times more.
- Declaring a value below the FBR or DC value — tax is charged on the higher figure anyway.
- Budgeting only 236K and 236C and forgetting stamp duty and the society fee.
- Treating 236C as the whole tax on the gain — capital gains tax is separate.
- Trusting an old rate table — many sites still show the pre-July-2026 slabs.
Frequently asked questions
Who pays property transfer tax in Pakistan?
Both sides. The buyer pays 236K plus provincial stamp duty and registration charges; the seller pays 236C, plus capital gains tax on any profit.
How much tax is due on a Rs 1 crore property?
In Punjab, a filer buyer pays about Rs 335,000 (3.35%) and a filer seller pays Rs 275,000 (2.75%).
Is 236C the same as capital gains tax?
No. 236C is advance tax on the sale price, paid at registration. Capital gains tax is charged separately on the profit, in the seller’s annual return.
What if I am not a filer?
You pay non-filer rates: 10.5% to 18.5% as a buyer (depending on value) and 11.5% as a seller. Filing your return and getting on the ATL before the transfer is the single biggest saving available.
What value is the tax calculated on?
The higher of the FBR valuation table, the DC rate, or the declared value.
Rates in this guide are from FBR’s Withholding Tax Rate Card updated to 30 June 2026 (Finance Act 2026, tax year 2027). Provincial rates are as of November 2026 and vary by district and society — verify them on your e-stamp challan and with FBR or a tax adviser before transacting. This guide is general information, not legal or tax advice.