AIWA Properties Advisory Desk
AIWA structures real property transactions for buyers and sellers across Punjab, including overseas Pakistanis. The rates below are the FY2026-27 figures in force since 1 July 2026 under the Finance Act 2026, verified in September 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.
Since 1 July 2026, an active filer pays 236C seller tax of 2.75% and 236K buyer tax of 1.25% — flat, whatever the property is worth. Non-filers still pay up to 11.5% selling and 18.5% buying. The Finance Act 2026 also abolished the late-filer tier and scrapped Section 7E. The biggest lever you control is still your filer status: getting on the Active Taxpayer List before you transact saves far more than the rate cut did.
Property tax in Pakistan confuses people because it isn’t one tax — it’s a stack of them, and the amount changes with 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 year the stack got simpler, and cheaper for filers. Here is what applies now and where the real savings sit.
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. Until this year the rate moved with the property’s value and with a three-way filer / late-filer / non-filer split. Now it turns on one question — are you an active filer or not.
Seller tax (236C) — FY2026-27
In force since 1 July 2026. The value slabs are gone; one rate applies to the whole sale.
| Tax status | Rate on any sale value |
|---|---|
| Active filer (on the ATL) | 2.75% |
| Non-filer | 11.5% |
Buyer tax (236K) — FY2026-27
Also in force since 1 July 2026. The filer rate is flat, but the non-filer rate still climbs with the purchase value:
| Purchase value | Filer | 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% |
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 1.25% (Rs 1.25 million), while a non-filer buyer pays 18.5% (Rs 18.5 million) — a Rs 17.25 million penalty for not being on the active taxpayer list. On that same purchase, this year’s rate cut saved a filer 1.25 percentage points. The filer/non-filer gap is worth nearly fourteen times 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 changed on 1 July 2026
The Finance Act 2026 delivered the transaction-tax relief the property and construction sector had been asking for, and aimed it squarely at filers. Three changes matter:
| Tax | FY2025-26 | FY2026-27 |
|---|---|---|
| 236C — seller | 4.5% – 5.5% by value | 2.75% flat |
| 236K — buyer | 1.5% – 2.5% by value | 1.25% flat |
- Filer rates cut and flattened. Value slabs disappeared for filers on both sections, so a Rs 200 million sale and a Rs 5 million sale now carry the same percentage.
- The “late filer” tier is abolished. Rule 1A of the Tenth Schedule was omitted. The middle rate that used to sit between filer and non-filer no longer exists — you are one or the other.
- Section 7E is gone. See below. For owners of higher-value property this is the largest change of the three.
Non-filer rates were left broadly untouched. The relief was pointed at people already inside the tax net, which is consistent with how the FBR has used the filer/non-filer split for several years now.
Section 7E has been scrapped
Section 7E taxed owners on income they never earned. It treated a resident owner as receiving 5% of the fair market value of property above Rs 25 million and taxed that deemed amount at 20%, which worked out at roughly 1% of the property’s value every year. It was challenged in high courts almost from the day it arrived.
On 7 May 2026 the Federal Constitutional Court declared Section 7E unconstitutional and void from the start, and dismissed the FBR’s appeals to restore it. Actions, proceedings and notices raised under the section fell away with it. The Finance Act 2026 then removed Section 7E from the Income Tax Ordinance outright.
No more 7E certificate at transfer
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.
- Capital Value Tax (CVT): 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, and it still stands. The conditions are strict: the property must have been in your personal use, declared in your wealth statement (Section 116), and recorded 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 worth far more than the rate cut.
- Budget 236K + stamp duty + registration, not just the price.
- Keep payments on banking channels (Section 75A).
If you're selling
- Plan for 236C at 2.75% plus any CGT on your gain.
- Check the 15-year personal-use 236C exemption if it fits.
- Don't accept a 7E certificate demand — the section is void.
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
Overseas buying guide
Filer status, Roshan Digital Account, and remote transfer for overseas Pakistanis.
Green Property Certificate 2026
Punjab's new digital ownership certificate replacing the Fard.
Talk to an advisor
Get your full transaction cost mapped before you commit.
Featured projects
Verified, on-ground inventory across Lahore, Islamabad, and Multan.
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. What you pay now depends on one thing: whether you are an active filer on the FBR's Active Taxpayer List.
What are the current property tax rates in Pakistan for 2026-27?
Since 1 July 2026, Section 236C (seller) is a flat 2.75% for active filers and 11.5% for non-filers, whatever the property is worth. Section 236K (buyer) is a flat 1.25% for active filers. The non-filer buyer rate still rises with value: 10.5% up to Rs 50 million, 14.5% from Rs 50–100 million, and 18.5% above Rs 100 million.
How much more do non-filers pay on property?
A lot, and the gap widened this year. On a Rs 100 million purchase, a filer buyer pays 1.25% (Rs 1.25 million) while a non-filer pays 18.5% (Rs 18.5 million) — a Rs 17.25 million penalty for not being on the Active Taxpayer List. On the selling side, a non-filer pays 11.5% against a filer's 2.75%. Getting on the ATL before you transact is the single biggest legal tax saving available.
What changed for property tax under the Finance Act 2026?
Three things, all effective 1 July 2026. First, filer rates were cut and flattened: 236C went from a 4.5–5.5% value-based scale to a flat 2.75%, and 236K from 1.5–2.5% to a flat 1.25%. Second, the 'late filer' category was abolished — Rule 1A of the Tenth Schedule was omitted, so you are now simply a filer or a non-filer. Third, Section 7E was removed from the Income Tax Ordinance. Non-filer rates were left broadly where they were.
Is Section 7E still payable in 2026?
No. Section 7E, the deemed-income tax that treated owners as earning 5% of the fair market value of property above Rs 25 million, is gone twice over. The Federal Constitutional Court declared it unconstitutional and void from the start on 7 May 2026, nullifying proceedings and notices raised under it, and the Finance Act 2026 then omitted the section from the Income Tax Ordinance. You should no longer be asked for a 7E certificate to complete a transfer.
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. Buyers in the federal capital territory pay a 2% Capital Value Tax on fair market value. Buyers everywhere also pay provincial stamp duty and registration fees, which are non-adjustable and cannot be reclaimed. And any property payment above Rs 5 million must move through banking channels under Section 75A.