Property taxes after the Finance Act 2026
The Finance Act 2026 replaced the old value-based slabs for filers with single flat rates and removed the separate "late filer" category from 1 July 2026:
| Section | Who pays | Active filer | Non-filer |
|---|---|---|---|
| 236K | Buyer, on purchase / transfer | 1.25% | 10.5% up to Rs 50m · 14.5% up to Rs 100m · 18.5% above |
| 236C | Seller, on sale / transfer | 2.75% | 11.5% |
The tax is charged on the higher of the declared price and the FBR valuation for the area (or provincial DC value where relevant). It is collected by the registrar or housing society before the transfer is completed.
Examples
| Value | Buyer filer | Buyer non-filer | Seller filer | Seller non-filer |
|---|---|---|---|---|
| Rs 5,000,000 | Rs 62,500 | Rs 525,000 | Rs 137,500 | Rs 575,000 |
| Rs 10,000,000 | Rs 125,000 | Rs 1,050,000 | Rs 275,000 | Rs 1,150,000 |
| Rs 25,000,000 | Rs 312,500 | Rs 2,625,000 | Rs 687,500 | Rs 2,875,000 |
| Rs 60,000,000 | Rs 750,000 | Rs 8,700,000 | Rs 1,650,000 | Rs 6,900,000 |
| Rs 150,000,000 | Rs 1,875,000 | Rs 27,750,000 | Rs 4,125,000 | Rs 17,250,000 |
On a Rs 1 crore house, a filer buyer pays Rs 125,000 while a non-filer pays Rs 1,050,000. Becoming a filer before the deal is by far the cheapest way to save on property tax.
Is this tax final?
No. For filers, 236K and 236C are advance taxes: you claim them against your total tax liability when you file your return. If your actual liability for the year is lower, the excess can be refunded or carried forward. Non-filers lose that benefit in practice.
Other charges on a property transfer
- Provincial stamp duty and CVT: set by each province (for example, Punjab and Sindh charge a percentage of value for urban property). Enter the combined percentage in the optional field to include them.
- Registration and mutation fees: small fixed amounts at the registrar or society.
- Capital gains tax: the seller may owe CGT on the gain in their annual return; rates depend on the purchase date and holding period.
- Society transfer fee in DHA, Bahria and other housing schemes.
Restrictions for non-filers
Besides higher tax, the Finance Act 2026 tightened limits on high-value transactions by persons not on the Active Taxpayers List. Overseas Pakistanis holding a NICOP or POC and staying in Pakistan less than 183 days in a year can be charged filer rates subject to conditions. If you are buying, get on the ATL first; it takes days, and the saving is large.
Planning a purchase with financing? Check how much you can borrow with the loan eligibility calculator.
Frequently asked questions
What is 236K tax on property purchase in 2026-27?
1.25% of the property value for active filers. Non-filers pay 10.5% up to Rs 50 million and more above that.
What is 236C tax for property sellers in 2026-27?
2.75% for active filers and 11.5% for non-filers.
Has the late filer rate been abolished?
Yes. From 1 July 2026 the late-filer category was removed; rates are simply filer or non-filer.
On what value is property tax calculated?
On the higher of the transaction price and the FBR valuation (or DC rate where applicable).
Can I adjust 236K tax in my return?
Yes. For filers it is advance tax adjustable against total tax liability for the year.