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Property Tax in Pakistan 2026-27 – Complete Guide to CGT, WHT, Stamp Duty and FBR Valuation

Buying or selling property in Pakistan involves multiple layers of tax — and most people find out about half of them only at the sub-registrar's office, which is not the best time to discover you owe more than you budgeted. This guide brings everything together: Capital Gains Tax (CGT), Withholding Tax (WHT), Stamp Duty, CVT, and FBR valuation rules — all updated for Budget 2026-27, which halved the WHT on property transactions for income tax filers.

Whether you are a first-time buyer, an investor with a portfolio of plots, or a seller trying to calculate your net proceeds, this guide gives you the full picture in one place. Use our Capital Gains Tax Calculator and Stamp Duty Calculator to get precise numbers for your specific transaction.

Understanding the 4 Types of Property Tax in Pakistan

When you buy or sell property in Pakistan, you do not pay just one tax. You typically pay a combination of four different levies, each calculated differently:

1. Withholding Tax on Purchase (Section 236K): Paid by the buyer at time of registration
2. Withholding Tax on Sale (Section 236C): Paid by the seller at time of registration
3. Capital Gains Tax (Schedule III): Paid by the seller via annual tax return
4. Stamp Duty & Registration Charges: Provincial levies paid at sub-registrar

There may also be a Capital Value Tax (CVT) in certain provinces and a housing society transfer fee in private housing schemes — but these are not FBR taxes.

1. Withholding Tax on Property — Budget 2026-27 Rates

The most significant change in Budget 2026-27 for property buyers and sellers is the 50% reduction in WHT rates for income tax filers. Previously, filers paid 2.5% on purchase and 5.5% on sale. Both rates have been halved:

Transaction	Filer (2025-26)	Filer (2026-27)	Non-Filer (2026-27)
Purchase WHT (Section 236K)	2.5%	1.25%	2.5% (unchanged)
Sale WHT (Section 236C)	5.5%	2.75%	5.5% (unchanged)

WHT is calculated on the higher of: (a) declared transaction price, (b) FBR valuation table value, (c) DC/CVT value. It is withheld at registration and is adjustable in your annual tax return.

Let us put this in concrete terms. If you are a filer buying a house in Lahore for PKR 2 crore and later selling it for PKR 2.8 crore:

Tax Component	As Filer (2026-27)	As Non-Filer (2026-27)	Saving as Filer
WHT on Purchase (2 crore)	PKR 250,000	PKR 500,000	PKR 250,000
WHT on Sale (2.8 crore)	PKR 770,000	PKR 1,540,000	PKR 770,000
Total WHT Saving	—	—	PKR 1,020,000

That is over PKR 10 lakh saved on a single property deal just by being a tax filer. This is why the ATL matters so much for property investors. Read our FBR Active Taxpayer List guide to understand how to get and stay on the list.

2. Capital Gains Tax (CGT) on Property

CGT is separate from WHT. WHT is deducted at the time of registration (a form of advance tax), while CGT is the final tax on your actual profit declared in your annual income tax return. The WHT already paid is credited against your CGT liability.

CGT Rates Based on Holding Period (2026-27)

Holding Period	CGT Rate	Practical Note
Less than 1 year	15%	Highest rate — short-term trading
1 to 2 years	12.5%	Still significant — plan your sale carefully
2 to 3 years	10%	Middle range
3 to 4 years	7.5%	Lower — consider waiting
4+ years	0% (Fully Exempt)	No CGT at all — most favorable

CGT applies to the net capital gain — not the total sale price. Your gain is calculated as: Sale Price − Purchase Price − Improvement Costs − Brokerage/Legal Fees. Here is a worked example:

3. FBR Valuation Tables — The Hidden Rule Most People Miss

This is where many property buyers and sellers get caught off guard. FBR has published its own property valuation tables for major cities including Karachi, Lahore, Islamabad, Rawalpindi, Peshawar, Quetta, Faisalabad, and other urban centres. These FBR tables set a minimum value below which a property cannot be transacted for tax purposes.

The rule is: taxes (WHT, CGT, Stamp Duty) are calculated on the highest of three values:

1. The actual declared sale/purchase price in the deed
2. The FBR valuation table value for that area and property type
3. The DC (Deputy Commissioner) rate for that union council

This means you cannot undervalue a property to reduce your taxes. If FBR's table says a plot in Bahria Town Phase 8 Rawalpindi is worth PKR 1 crore per marla and you write PKR 50 lac per marla in the sale deed, FBR will calculate all taxes on PKR 1 crore per marla anyway — and may also send you a notice for understating income.

FBR updates its valuation tables periodically. You can check the current rates at fbr.gov.pk → Valuation of Immovable Properties — select your city, union council, and property type to see the applicable FBR rate.

4. Stamp Duty and Registration Charges by Province

Stamp duty is a provincial tax levied on the registration of property transfers. Each province sets its own rates:

Province	Stamp Duty	Registration Fee	Other Charges	Approx. Total
Punjab	3% of value	1% of value	TMA fee, misc.	~5%
Sindh	3% of value	1% of value	Urban Immovable Property Tax	~5–6%
Khyber Pakhtunkhwa	3% of value	1% of value	Local fees	~4–5%
Balochistan	3% of value	1% of value	Local fees	~4–5%
Islamabad (ICT)	2% of value	1% of value	CDA charges	~4%

Stamp duty is paid by the buyer. Rates are applied on the registered value (higher of declared price or DC rate). Always confirm with your local sub-registrar as rates may be updated by provincial budgets. Use our Stamp Duty Calculator for province-wise estimates.

Full Cost Breakdown — Buyer's Perspective

Let us see the full cost of buying a house in Lahore, Punjab for PKR 1.5 crore as a filer:

Cost Component	Rate	Amount (PKR)
Purchase Price	—	15,000,000
WHT on Purchase (Section 236K) — Filer	1.25%	187,500
Stamp Duty (Punjab)	3%	450,000
Registration Fee	1%	150,000
TMA / Local Charges (approx.)	~0.5%	75,000
Lawyer/Agent Fee (typical)	~1%	150,000
Total Cost of Buying	~6.1%	PKR 16,012,500

Full Cost Breakdown — Seller's Perspective

Now the seller's side on the same PKR 1.5 crore house, sold after 3 years (bought at PKR 1 crore). Seller is a filer:

Tax Component	Calculation	Amount (PKR)
WHT on Sale (Section 236C) — Filer	1.5 crore × 2.75%	412,500
Capital Gain	1.5cr − 1.0cr = 50 lac	5,000,000
CGT Rate (3–4 year holding)	7.5% of 50 lac	375,000
Less: WHT credit already paid	−412,500	−412,500
Net CGT payable in return	—	PKR 0 (WHT exceeded CGT)

In this scenario, the WHT already withheld (PKR 412,500) exceeds the final CGT (PKR 375,000), so the seller actually gets a refund of PKR 37,500 when filing the return. This is why declaring WHT in your annual return matters — you may be entitled to a refund.

Property Inherited from Parents — Special Rules

One question that comes up constantly: what happens when you sell property you inherited from your parents? The good news is that the inheritance transfer itself is not subject to CGT. You only pay CGT when you subsequently sell the inherited property.

For CGT calculation on an inherited property sale:

• Your cost basis is the FBR/DC value of the property at the time of inheritance transfer — not what your parents originally paid for it
• The holding period for CGT purposes starts from when you received it by inheritance — not from when your parents bought it
• If you sell within a year of inheriting, the 15% CGT rate applies. If you wait 4+ years after inheriting, no CGT applies