AIWA Properties Advisory Desk
AIWA structures real property transactions for buyers and sellers across Punjab, including overseas Pakistanis. The rates below are the current FY2025-26 figures (effective 1 July 2025) and the publicly reported Budget 2026-27 proposals as of June 2026. Tax law changes and individual cases differ — we are advisors, not your tax consultant or the FBR, so confirm your exact liability with a qualified tax professional before you transact.
For FY2025-26, an active filer pays 236C seller tax of 4.5–5.5% and 236K buyer tax of 1.5–2.5%, scaled by property value — while non-filers pay up to 11.5% (seller) and 18.5% (buyer). The Budget 2026-27 proposes to roughly halve these for filers from 1 July 2026, but that is not yet law. The biggest lever you control is your filer status: becoming an active taxpayer before you transact saves far more than any rate cut.
Property tax in Pakistan confuses people because it isn’t one tax — it’s a stack of them, and the amount changes with the property’s value, who you are to the FBR, and when you bought. Get it wrong and the surprise lands at transfer, when the money is already committed. This guide lays out what actually applies in 2026, what’s changing, and where the real savings are.
The two big ones: 236C and 236K
Most of the “property tax” people talk about comes down to two advance taxes the FBR collects at the moment of transfer:
- Section 236C — paid by the seller on the sale value.
- Section 236K — paid by the buyer on the purchase value.
Both are adjustable: they are advance payments you can claim back against your final income tax liability when you file your return. The rate depends on two things — the property’s value slab and your tax status (active filer, late filer, or non-filer).
Current seller tax (236C) — 2025-26
Rates effective 1 July 2025, by sale value and filer status:
| Property value | Filer | Late filer | Non-filer |
|---|---|---|---|
| Up to Rs 50 million | 4.5% | 7.5% | 11.5% |
| Rs 50–100 million | 5% | 8.5% | 11.5% |
| Above Rs 100 million | 5.5% | 9.5% | 11.5% |
Current buyer tax (236K) — 2025-26
Rates effective 1 July 2025, by purchase value and filer status:
| Property value | Filer | Late filer | Non-filer |
|---|---|---|---|
| Up to Rs 50 million | 1.5% | 4.5% | 10.5% |
| Rs 50–100 million | 2% | 5.5% | 14.5% |
| Above Rs 100 million | 2.5% | 6.5% | 18.5% |
The filer vs non-filer gap — where the real money is
Notice how steep the non-filer column is. On a Rs 100 million purchase, a filer buyer pays 2.5% (Rs 2.5 million), while a non-filer buyer pays 18.5% (Rs 18.5 million) — a Rs 16 million penalty for not being on the active taxpayer list. No proposed rate cut comes close to that. If you are planning a transaction, getting on the FBR’s Active Taxpayer List first is almost always the smartest move you can make.
Filer first, then transact
What’s proposed in Budget 2026-27
To revive property and construction, the government has signalled major transaction-tax relief for active filers from 1 July 2026. The exact figures are not settled — two versions are circulating:
- A widely shared FBR-style rate card shows filer rates roughly halved — 236C seller from 4.5–5.5% to about 2.25–2.75%, and 236K buyer from 1.5–2.5% to about 0.75–1.25%.
- Some news reports cite deeper flat cuts for filers — 236C toward ~1.5% and 236K toward ~0.25%.
Proposed — not yet law
The taxes people forget
236C and 236K are not the whole bill. Depending on your situation, also budget for:
- Capital Gains Tax (CGT): on profit from a sale. For property bought on or after 1 July 2024, a flat 15% for filers; older holdings use the reducing holding-period scale. Your 236C can be adjusted against CGT.
- Section 7E (deemed income): treats resident owners as earning 5% of fair market value on property above Rs 25 million (with exemptions), taxed at 20% of that deemed income.
- Capital Value Tax (CVT): an annual 2% of fair market value in the federal capital territory.
- Stamp duty & registration fees: provincial, and non-adjustable — a real transaction cost you cannot reclaim.
- Section 75A: any property payment above Rs 5 million must move through banking channels, not cash.
One exemption sellers miss
The Finance Act 2025 grants an exemption from 236C on the sale of one genuinely personal-use property — but the conditions are strict: the property must have been in your personal use and declared in your wealth statement (Section 116) as your residence for the last fifteen years. It is a narrow relief for long-held family homes, not a general loophole.
What this means for you
If you're buying
- Confirm your filer status before transfer — it's your biggest saving.
- Budget 236K + stamp duty + registration, not just the price.
- Keep payments on banking channels (Section 75A).
If you're selling
- Plan for 236C plus any CGT on your gain.
- Check the 15-year personal-use 236C exemption if it fits.
- Your advance tax is adjustable — file to recover it.
If you're overseas
- Filer status still drives your rate — get listed.
- Use a Roshan Digital Account and banking-channel payments.
- We coordinate verification and documentation remotely.
Where AIWA fits in
We are not a tax consultancy and we don’t set FBR rates — but a transaction goes wrong just as easily on the tax side as on the title side. We map your full, all-in cost before you commit, flag where filer status or timing changes the number by millions, and connect you with verified inventory and qualified tax guidance so nothing ambushes you at transfer.
Keep going
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Filer status, Roshan Digital Account, and remote transfer for overseas Pakistanis.
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Frequently Asked Questions
What are Sections 236C and 236K?
They are advance (withholding) income taxes collected by the FBR at the moment a property is transferred. Section 236C is paid by the seller on the sale value; Section 236K is paid by the buyer on the purchase value. Both are 'adjustable' — you can claim them against your annual income tax liability when you file your return. The rate you pay depends on the property's value and on your tax status (filer, late filer, or non-filer).
What are the current property tax rates in Pakistan for 2026?
For FY2025-26 (effective 1 July 2025), Section 236C (seller, filer) is 4.5% up to Rs 50 million, 5% from Rs 50–100 million, and 5.5% above Rs 100 million. Section 236K (buyer, filer) is 1.5% up to Rs 50 million, 2% from Rs 50–100 million, and 2.5% above Rs 100 million. Late filers and non-filers pay considerably more — non-filer buyer tax reaches 18.5% on the top slab.
How much more do non-filers pay on property?
A lot. On Section 236C, a seller non-filer pays a flat 11.5% versus 4.5–5.5% for a filer. On Section 236K, a buyer non-filer pays 10.5% to 18.5% depending on value, versus just 1.5–2.5% for a filer. On a Rs 100 million purchase, that gap is roughly Rs 16 million extra for a non-filer buyer. Becoming an active filer before you transact is the single biggest legal tax saving available.
What property tax changes are proposed in Budget 2026-27?
The government has signalled significant relief on transaction taxes for active filers to revive the property and construction sector. A widely circulated FBR rate card shows the filer 236C and 236K rates roughly halved (for example seller tax from 4.5–5.5% to about 2.25–2.75%, and buyer tax from 1.5–2.5% to about 0.75–1.25%), while some news reports cite even deeper flat cuts. These are proposals tied to the budget and are not final until passed in the Finance Act and notified by the FBR.
When do the new property tax rates take effect?
The proposed relief is associated with the FY2026-27 budget, which would take effect from 1 July 2026 if approved. As of June 2026 it remains a proposal under discussion and has not been enacted, so the current FY2025-26 rates still apply until the Finance Act is passed and the FBR issues an official notification. Treat any 'new rate' card circulating on social media as unconfirmed until then.
What other taxes apply when buying or selling property?
Beyond 236C and 236K, sellers may owe Capital Gains Tax (a flat 15% for filers on property bought on or after 1 July 2024). Owners may face Section 7E deemed-income tax and a 2% Capital Value Tax on fair market value. Buyers also pay non-adjustable costs — provincial stamp duty and registration fees — which cannot be reclaimed. And any property payment above Rs 5 million must go through banking channels under Section 75A.