Buying or selling a plot, house or flat this year? The first question is how much tax the registrar or society will collect at transfer. Under the property tax 2026-27 rules in force since 1 July 2026, filers pay lower, flat advance tax under section 236C (seller) and section 236K (buyer), the "late filer" rates are gone, and non-filer rates did not move. This guide covers the current rates, the 2025 and 2026 changes that reports often mix up, capital gains tax, and how FBR valuation tables set your taxable value. For the basics, see our earlier buyer and seller property tax guide, written before this budget.
Editorial note (October 2026): This guide is general information based on publicly available laws, court decisions, regulator notices and market reports as of October 2026. Rules, rates and procedures change — confirm current requirements with the relevant authority, your bank, or a qualified lawyer or tax advisor before acting. This is not legal, tax or investment advice.
Property tax 2026-27: what changed on 1 July 2026
The Finance Act 2026 applies from tax year 2027, which began on 1 July 2026. For property, the main changes were:
- Seller (236C), filers: a flat 2.75% of the sale consideration, replacing bands of 4.5% to 5.5%.
- Buyer (236K), filers: a flat 1.25% of fair market value, replacing bands of 1.5% to 2.5%.
- Late filer rates were removed, and section 7E was omitted.
- Non-filer rates stayed at 11.5% for sellers and 10.5% to 18.5% for buyers.
FBR's Circular No. 02 of 2026-27 (8 September 2026) confirms the 2.75% and 1.25% rates for active taxpayers, the removal of the higher late-filer rates and the omission of 7E. The non-filer rates come from FBR's withholding tax rate card for tax year 2027, updated as per the Finance Act 2026. The budget's salient features, as published by Business Recorder, listed the buyer rate as 1.5%. FBR's circular and rate card both show 1.25%, the enacted figure.
236C and 236K tax rate 2026: filer vs non-filer
"Filer" means a person on FBR's Active Taxpayers List (ATL) on the transaction date. Check your status on FBR's website or by sending "ATL", a space and your 13-digit CNIC to 9966 before the transfer.
| Section | Who pays | Property value | Filer (ATL) | Non-filer |
|---|---|---|---|---|
| 236C | Seller | Any value | 2.75% | 11.5% |
| 236K | Buyer | Up to Rs 50 million | 1.25% | 10.5% |
| 236K | Buyer | Rs 50 million to Rs 100 million | 1.25% | 14.5% |
| 236K | Buyer | Above Rs 100 million | 1.25% | 18.5% |
236C is charged on the gross sale consideration; 236K is charged on fair market value, which in practice is driven by the FBR notified value for your area. For non-filer buyers, the band is set by the value of the whole property and that band's rate applies to the full amount. For other ways non-filer status affects a purchase, see filer vs non-filer: how it affects your property purchase.
Untangling the 2025 and 2026 cuts
Reports credit "the property tax cut" to different budgets because there were two changes a year apart. FBR's rate cards for the last three tax years show the sequence (three figures mean up to Rs 50 million / Rs 50 to 100 million / above Rs 100 million):
| Rate | Finance Act 2024 (tax year 2025) | Finance Act 2025 (tax year 2026) | Finance Act 2026 (tax year 2027) |
|---|---|---|---|
| 236C seller, filer | 3% / 3.5% / 4% | 4.5% / 5% / 5.5% | 2.75% flat |
| 236C seller, late filer | 6% / 7% / 8% | 7.5% / 8.5% / 9.5% | Removed |
| 236C seller, non-filer | 10% | 11.5% | 11.5% |
| 236K buyer, filer | 3% / 3.5% / 4% | 1.5% / 2% / 2.5% | 1.25% flat |
| 236K buyer, late filer | 6% / 7% / 7% | 4.5% / 5.5% / 6.5% | Removed |
| 236K buyer, non-filer | 12% / 16% / 20% | 10.5% / 14.5% / 18.5% | 10.5% / 14.5% / 18.5% |
The Finance Act 2025 roughly halved the buyer's rate, while the filer seller rate on the 2025 card was 1.5 points higher than a year earlier. The Finance Act 2026 then halved the top filer rates on both sides and flattened the bands. Budget-day headlines of "5.5% to 2.75%" and "2.5% to 1.25%" quote the top band, above Rs 100 million. For a typical property under Rs 50 million, a filer's rate actually moved from 4.5% to 2.75% on a sale and from 1.5% to 1.25% on a purchase. Our explainer on how 236C and 236K work for developers covers the mechanics.
Illustrative calculation: what changes in rupees
This is an illustration only. It assumes the tax base equals the stated value and leaves out provincial stamp duty, registration fees and society transfer charges.
| Property value | Who pays | Filer, tax year 2026 | Filer, tax year 2027 | Non-filer, tax year 2027 |
|---|---|---|---|---|
| Rs 30,000,000 | Seller (236C) | 4.5% = Rs 1,350,000 | 2.75% = Rs 825,000 | 11.5% = Rs 3,450,000 |
| Rs 30,000,000 | Buyer (236K) | 1.5% = Rs 450,000 | 1.25% = Rs 375,000 | 10.5% = Rs 3,150,000 |
| Rs 120,000,000 | Seller (236C) | 5.5% = Rs 6,600,000 | 2.75% = Rs 3,300,000 | 11.5% = Rs 13,800,000 |
| Rs 120,000,000 | Buyer (236K) | 2.5% = Rs 3,000,000 | 1.25% = Rs 1,500,000 | 18.5% = Rs 22,200,000 |
On a Rs 30 million deal between two filers, combined advance tax falls from Rs 1,800,000 to Rs 1,200,000. Between two non-filers it is Rs 6,600,000, which is 5.5 times the filer total. Getting onto the ATL before the transfer is now the biggest saving most people can make.
The late filer category is gone, and 7E has been omitted
Under the 2024 and 2025 cards, people who joined the ATL by filing after the due date paid "late filer" rates between the filer and non-filer rates. FBR's circular confirms these were removed. If you are on the ATL on the transaction date, you pay the filer rate even if your return was late. Late inclusion in the ATL still carries a surcharge, and the budget's salient features say that penalty was enhanced, so check the current amount before filing.
Section 7E, which taxed deemed income on higher-value property, was struck down by the Federal Constitutional Court on 7 May 2026 and omitted by the Finance Act 2026. Refunds and pending notices are covered in our post on Section 7E's abolition.
Capital gains tax on property in Pakistan 2026-27
Advance tax and capital gains tax (CGT) are different. 236C is collected on the full sale value at transfer. CGT is charged on your gain (sale price minus cost) under section 37(1A) of the Income Tax Ordinance and settled through your annual return. Advance tax is generally adjustable against your tax for the year, so keep the payment receipt (CPR).
The budget's salient features listed no change to CGT on immovable property, so the Finance Act 2024 regime continues. Per an FBR circular reported by Business Recorder:
- Acquired on or after 1 July 2024: filers on the ATL at disposal pay a flat 15% of the gain, whatever the holding period.
- Non-filer individuals and AOPs: normal slab rates, but never less than 15%.
- Acquired on or before 30 June 2024: the older holding-period rules apply, with up to 15% on a sale in the first year, falling to zero after a period that depends on property type and purchase date.
Illustration: a filer buys an open plot for Rs 20,000,000 in August 2024 and sells it for Rs 26,000,000 in October 2026. The gain is Rs 6,000,000, so CGT at 15% is Rs 900,000. Separately, 236C at 2.75% on Rs 26,000,000 is Rs 715,000 at transfer, assuming the FBR value is not higher than the sale price.
Property tax for overseas Pakistanis in 2026
FBR's FAQ for overseas Pakistanis says a non-resident holding a NICOP or POC can pay the filer rate under 236C and 236K without being on the ATL. Non-resident means spending less than 183 days in Pakistan in the tax year. The steps:
- The registrar, development authority or society generates the PSID through the "Overseas Pakistanis" option on FBR's portal.
- You declare your NICOP or POC, upload a copy and state your residential status with supporting documents.
- The Commissioner Inland Revenue verifies and approves it in IRIS, and you are told by email and SMS.
- You pay advance tax at the filer rate against the approved PSID.
The FAQ was written for the 2025 rates, so confirm the collecting office applies the new 2.75% and 1.25%. CGT still applies to any gain. See our guides to buying through a Roshan Digital Account and the documents needed to buy property.
FBR valuation table 2026: how your taxable value is set
Under section 68 of the Income Tax Ordinance, FBR notifies area-wise property values through SROs. As Dawn reported in April 2026, these tables are used for federal taxes including capital gains and withholding tax. Provinces separately notify DC (district collector) rates, which drive stamp duty and registration fees.
The registering office usually starts from the FBR value for your locality and category. If your deed price is higher, the higher figure is generally used, and where the DC rate exceeds the FBR value, many offices apply the higher of the two. Practice varies, so confirm the base before you settle the deed price. FBR's Islamabad notifications also say that where two notified rates conflict, the higher applies.
Tables changed several times in 2026, as reported by Dawn, Profit and ProPakistani:
| Area | Notification | What changed |
|---|---|---|
| Islamabad | December 2025 table | Steep increases; suspended until 31 January 2026 after objections |
| Islamabad | SRO 163(I)/2026 (2 Feb), amended by SRO 332(I)/2026 (24 Feb) | Values up 15% to 75% on average; DHA excluded; rural ICT left on DC rates |
| Islamabad | SRO 644(I)/2026 (16 Apr) | Superseded the February SROs; cuts of 10% to 35% in many urban sectors |
| Multan, Faisalabad, Bahawalpur, Gujranwala, Sialkot | SROs 650 to 653 and 662 of 2026, effective 22 Apr | Targeted changes to selected localities, such as DHA and Askari schemes, in the 2024 base tables |
Trade press also reported amendments for DHA Lahore and DHA Rawalpindi in May 2026. To find your value:
- Download your city's base notification from the property valuation section of fbr.gov.pk, not a WhatsApp rate list.
- Check for later amendment SROs, since several 2026 changes edited only certain serial numbers.
- Find your locality and column: residential or commercial, open plot or constructed.
- Note the unit (marla, square yard or square foot) and multiply by your land area; for a building, add covered area times the superstructure rate.
- Compare with the DC rate and your deed price, then confirm the base with the registering office.
Provincial charges are separate; Punjab owners should read our post on Punjab property tax 2026-27. For what lower transfer taxes may mean for prices, see our 2026 market outlook.
How CAPITALESTATEPK helps developers and societies
If your society or company records transfers, you collect 236C and 236K and must keep proof. CAPITALESTATEPK does not calculate the tax, but it keeps the evidence organised:
- Plot, booking and transfer records, with CNIC or NICOP copies, the ATL check, PSID and CPR stored in the document vault.
- An approval step so a senior officer signs off a transfer only after checking the tax documents.
- Audit trail and role-based access showing who entered or approved what, and when.
- Reports and exports of transfers by date range for FBR or auditors.
To see transfer records in practice, book a demo.
Frequently Asked Questions
What are the 236C and 236K tax rates for filers in 2026-27?
From 1 July 2026, a filer selling property pays 2.75% under 236C and a filer buying pays 1.25% under 236K, whatever the value. FBR confirmed these rates in its Circular No. 02 of 2026-27.
How much property tax does a non-filer pay in 2026-27?
A non-filer seller pays 11.5%. A non-filer buyer pays 10.5% up to Rs 50 million, 14.5% from Rs 50 million to Rs 100 million, and 18.5% above that. These rates did not change in Budget 2026-27.
Is there still a separate late filer rate?
No. If you are on the ATL on the transaction date, you pay the filer rate. Joining the ATL late still carries a surcharge.
Do overseas Pakistanis pay the non-filer rate?
Not necessarily. FBR's FAQ says non-resident NICOP or POC holders can pay the filer rate through a PSID approved by the Commissioner. Confirm the collecting office applies the new rates.
Which value is used: FBR value or DC rate?
Federal taxes such as 236C, 236K and CGT start from FBR's notified value, or the deed price if higher, while stamp duty uses the DC rate. Many offices apply whichever of the FBR value and DC rate is higher, so confirm before signing.