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Selling or buying property in Pakistan triggers two different taxes, and they are easy to confuse. Capital gains tax on property in Pakistan is charged on the profit you make. Advance income tax is collected at the moment of transfer, from the seller under Section 236C and from the buyer under Section 236K.
This guide sets out the FBR gain tax on property for 2026-27, the gain tax on property for filer and non-filer, long-term capital gains tax rates for 2026, capital gain tax on sale of inherited property in Pakistan, and how capital gain tax on immovable property in Pakistan compares between 2025-26 and 2026-27, with a worked Property Capital Gain Tax Calculator Pakistan 2026-27 example at the end.
The Section 236C and 236K rates below apply from 1 July 2026. Capital gains tax continues to depend on the acquisition date and ATL status.
The Finance Act 2026 cut advance tax on both sides of a property transfer and simplified it to a single flat rate for anyone on the Active Taxpayers’ List, so property value no longer changes the filer rate. Capital gains tax rates were left alone.
Capital gain tax on property in Pakistan 2026 applies to the gain made when immovable property is sold or transferred.
Capital gain = disposal consideration − recognized property cost
A 0% entry is the applicable rate. N/A means the official table does not list a later bracket for that category, because the rate has already fallen to nil at the preceding bracket and stays nil after that. In practice, a constructed property held for more than five years and a flat held for more than three years attract no capital gains tax. Holding longer does not reduce the 15% ATL rate for property acquired from 1 July 2024.
A transfer to a beneficiary following death generally creates no gain or loss at that stage. Under Section 76(8A), an individual beneficiary’s recognised cost is the fair market value under Section 68(5) when the property is transferred to the beneficiary.
A qualifying family settlement among family members following a death falls within the non-recognition rules in Section 79, so it is treated the same way. A later sale by the beneficiary may create capital gains tax measured against that recognized cost.
Capital gains tax and advance income tax are different. Capital gains tax is based on the gain. Section 236C is collected from the seller on gross sale consideration, while Section 236K is collected from the buyer on the property’s fair market value.
These amounts are generally adjustable against your final liability. If a property is acquired and disposed of within the same tax year, the Section 236C amount becomes the minimum tax for that transaction, so it is neither adjustable nor refundable.
Separate late-filer property rates have been removed, so the rates above distinguish only between people on the ATL and people who are not. Late filing still costs money: a person who files after the due date must pay a surcharge to be restored to the ATL, and the Finance Act 2026 raised those amounts sharply.
An individual can avoid the surcharge under Section 182A(3) by giving the Commissioner an undertaking not to purchase or otherwise acquire an interest in any property for six months from the date of the undertaking. That is a real trade-off if you are planning a purchase, so weigh it before choosing either route.
Learn more about How Property Tax Is Calculated in Punjab.
An eligible non-resident may receive filer rates without appearing on the ATL. The person must hold a POC or NICOP and must be a non-resident, meaning a stay in Pakistan of less than 183 days in the financial year. The registrar or housing society creates a PSID through the Overseas Pakistanis link on the FBR portal, the applicant uploads the identity and residency documents, and the Commissioner verifies and approves it through IRIS before tax is paid at filer rates.
A property acquired after 1 July 2024 for Rs. 30 million and sold for Rs. 40 million by a seller on the ATL:
The buyer separately pays Section 236K at 1.25% of the fair market value, which on a Rs. 40 million valuation is Rs. 500,000. To run your own numbers, confirm the acquisition date first, then the recognized cost, then apply the rate from the correct table, and finally credit the Section 236C amount unless it has become minimum tax.
See how to understand about Property Tax in Pakistan as an Investor here.
This article provides general information and is not tax, legal or financial advice. Rates and procedures can change. Confirm the latest position with FBR or a qualified Pakistani tax adviser before completing a transaction.
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