📈 Capital Gains Tax Calculator
Asset Details
Capital Gains Tax Payable
CGT Breakdown
| Purchase Price | PKR 5,000,000 |
| Sale Price | PKR 8,000,000 |
| Capital Gain | PKR 3,000,000 |
| CGT Rate | 0% |
| Tax Payable | PKR 0 |
CGT on immovable property held for 4+ years is exempt. Rates vary by holding period and asset type as per FBR.
How to Use the Capital Gains Tax Calculator
Capital Gains Tax (CGT) in Pakistan applies to the profit you make when selling immovable property, listed company shares, or other assets. The rate you pay depends heavily on how long you held the asset — property held for 4 or more years is fully exempt from CGT under current FBR rules.
Enter the purchase price, sale price, holding period, and any improvement costs. The calculator applies the correct Budget 2026-27 CGT rate for your asset type and holding period to show your exact tax liability. Understanding this before you sell can save you significant amounts — for example, waiting a few extra months to cross a holding period threshold could reduce your CGT rate from 12.5% to 10%.
15% down to 0% — based on years held (4+ years = exempt)
Listed PSX shares — collected by NCCPL at settlement
Renovation costs deducted from capital gain automatically
📖 Complete Guide to Capital Gains Tax (CGT) in Pakistan — Property & Shares 2026-27
What is Capital Gains Tax?
Capital Gains Tax (CGT) is a tax on the profit you earn when you sell a capital asset — such as property, shares, or other investments — for more than you paid for it. In Pakistan, CGT is governed by the Income Tax Ordinance 2001 (Schedule III) and applies separately from income tax on your salary or business income. The CGT rate depends primarily on how long you held the asset before selling — the longer you hold, the lower the rate. Property held for 4+ years is completely exempt from CGT.
CGT Rates on Immovable Property — 2026-27
| Holding Period | CGT Rate | Strategy Note |
|---|---|---|
| Less than 1 year | 15% | Highest rate — avoid selling within 1 year |
| 1 to 2 years | 12.5% | Still significant |
| 2 to 3 years | 10% | Middle range |
| 3 to 4 years | 7.5% | Lower — consider waiting one more year |
| 4 years or more | 0% — Fully Exempt | Best outcome — no CGT at all |
CGT vs WHT — Understanding Both Taxes on Property Sale
When you sell property, TWO different taxes may apply — many people confuse them:
| Tax | What It Is | When Paid | Rate (Filer 2026-27) |
|---|---|---|---|
| WHT Section 236C | Advance tax on gross sale price | At sub-registrar at time of sale | 2.75% of sale value |
| CGT (Schedule III) | Final tax on net capital gain | Via annual income tax return | 0% to 15% on profit only |
The WHT paid at registration is adjustable — it is credited against your final CGT liability when you file your annual return. If the WHT paid exceeds your CGT, you are entitled to a refund of the difference. This is why filing your annual return is important even when you have already paid WHT on a property sale.
Budget 2026-27 Change — WHT on Property Halved
Budget 2026-27 halved the WHT on property transactions for income tax filers: Purchase WHT: 2.5% → 1.25% and Sale WHT: 5.5% → 2.75%. CGT rates are unchanged. This means on a PKR 1 crore property sale, filers now pay PKR 27,500 in WHT instead of PKR 55,000 — saving PKR 27,500 on a single transaction. Non-filers continue at the old higher rates.
Frequently Asked Questions — Capital Gains Tax Pakistan
CGT rates on immovable property under Budget 2026-27: 15% — held less than 1 year | 12.5% — 1 to 2 years | 10% — 2 to 3 years | 7.5% — 3 to 4 years | 0% (fully exempt) — held 4 or more years. These rates apply to the net capital gain (sale price minus purchase price minus documented improvement costs).
Yes. Under current FBR rules, immovable property held for 4 or more years is completely exempt from Capital Gains Tax. This is one of Pakistan's most significant property investment incentives. If you are close to the 4-year mark, waiting to sell can save you 7.5% tax on your entire capital gain — a significant amount on higher-value properties.
For inherited property, the holding period for CGT purposes starts from the date of the original owner's death, not from when the original owner purchased the property. So if your parent bought land in 2005 and passed away in 2022, and you sell in 2024, your holding period is only 2 years — CGT applies at 10%. This is a commonly misunderstood rule that surprises many heirs.
Yes. Genuine, documented improvement costs — boundary wall construction, additional rooms, renovation works, legal costs for the purchase, and agent commissions — can all be deducted from your capital gain. The formula is: Capital Gain = Sale Price − Purchase Price − Improvement Costs. Keep all receipts, contractor agreements, and bank transfer records as FBR may request proof.
CGT in Pakistan is calculated only on the capital gain (profit) — not the full sale price. If you bought property for PKR 5,000,000 and sold for PKR 8,000,000 with PKR 300,000 improvement costs, your capital gain is PKR 2,700,000. CGT is calculated on this PKR 2,700,000 at the applicable rate — not on the PKR 8,000,000 sale price.
Yes. CGT on shares listed on the Pakistan Stock Exchange (PSX) is automatically collected by NCCPL (National Clearing Company of Pakistan) at settlement. You do not need to calculate or pay it separately. However, you must still declare it in your annual income tax return. Rates are: 15% (under 1 year), 12.5% (1–2 years), 10% (2–3 years), 7.5% (3–4 years), 5% (4+ years).
CGT is tax on the seller's profit from the property transaction. Advance Tax (Section 236C/236K) is a withholding tax collected on the gross value of the transaction — 3% for filers and 6% for non-filers on the sale side; 3% for filers and 4% for non-filers on the purchase side. Advance Tax is adjustable against your final tax liability in the annual return. Both CGT and Advance Tax apply simultaneously on property transactions.
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Worked Example — Full CGT Calculation
You bought a plot in Islamabad for PKR 60 lac in 2023 and sold it for PKR 90 lac in 2026 (3 years). You are a filer.
| Component | Amount (PKR) |
|---|---|
| Sale Price | 9,000,000 |
| Purchase Price | 6,000,000 |
| Brokerage paid on sale (1%) | −90,000 |
| Net Capital Gain | 2,910,000 |
| CGT Rate (3 years holding) | 7.5% |
| CGT Liability | 218,250 |
| WHT already paid at registration (2.75% of 90 lac) | 247,500 |
| Net CGT Payable in Return | 0 (Refund of PKR 29,250 due) |
CGT on Shares — FBR 2026-27 Rates
| Asset Type | Filer CGT Rate | Non-Filer CGT Rate |
|---|---|---|
| Listed company shares (PSX) — held less than 1 year | 15% | 20% |
| Listed company shares — held 1+ years | 12.5% | 16% |
| Mutual fund units (equity) | 15% | 20% |
| Mutual fund units (money market/income) | 10% | 15% |
| Unlisted company shares | 10% | 10% |
FBR Valuation Tables — The Rule You Must Know
FBR publishes its own property valuation tables for major Pakistani cities. All taxes (WHT, CGT, stamp duty) are calculated on the highest of:
- Declared transaction price in the sale deed
- FBR valuation table value for that area and property type
- DC (Deputy Commissioner) rate for that union council
You cannot undervalue a property to reduce taxes. Check FBR valuation tables at fbr.gov.pk → Valuation of Immovable Properties before any transaction to know the tax base that will apply.
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