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Qanoon Digest

Property purchase tax

A buyer on the active taxpayers' list pays advance tax of 1.25% of the property's fair market value under section 236K in tax year 2027, against 1.5% to 2.5% in 2026. A buyer not on the list pays 10.5% to 18.5%. The tax is collected at registration and is adjustable.

Rs

The value the tax is charged on, which may differ from the price you agreed.

Buyer on the active taxpayers' list
Tax year of the transfer

1 July 2026 to 30 June 2027

Advance tax the buyer pays

Rs 0

Fair market value
Rate applied to the whole value
Value plus the tax

Same value, other cases

How is section 236K tax worked out?

The calculator finds the band the fair market value falls in and applies that band's rate to the whole value. It is not a slab system: a value just above a band limit pays the higher rate on every rupee.

Rates by tax year

Fair market valueOn the ATL, 2027On the ATL, 2026Not on the ATL
Up to Rs 50 million1.25%1.5%10.5%
Above Rs 50 million, up to Rs 100 million1.25%2%14.5%
Above Rs 100 million1.25%2.5%18.5%

The tax year 2027 rate is Division XVIII of Part IV as substituted by the Finance Act, 2026. The tax year 2026 bands are the table it replaced. The rates for people not on the active taxpayers' list are in the second proviso to rule 1 of the Tenth Schedule, as amended by the Finance Act, 2025, and are the same in both years.

What about people who filed late in tax year 2026?

Rule 1A of the Tenth Schedule, inserted by the Finance Act, 2024, set higher section 236K rates for people on the active taxpayers' list who had not filed their return by the due date: 4.5% up to rs 50 million, 5.5% above rs 50 million, up to rs 100 million, 6.5% above rs 100 million. Its proviso excluded a person who had filed by the due date for all of the last three preceding tax years. The Finance Act, 2026 omitted rule 1A, so it does not apply in tax year 2027. The calculator does not model it.

This is an estimate of the advance tax only. It does not work out the fair market value, and it does not include stamp duty, registration fees or any other charge collected at transfer. The tax is adjustable against the buyer's income tax for the year under section 236K(2).

Where the rates come from

Every rate is read from the Income Tax Ordinance, 2001 as consolidated by FBR. The rates on this page were last checked against the official text on 2026-09-26.

Common questions

What is the advance tax on buying property in tax year 2027?

For a buyer on the active taxpayers' list, 1.25% of the fair market value, under Division XVIII of Part IV of the First Schedule as substituted by the Finance Act, 2026. The rate is the same at every value.

What does a buyer not on the active taxpayers' list pay?

The Tenth Schedule sets its own table for section 236K: 10.5% up to rs 50 million, 14.5% above rs 50 million, up to rs 100 million, 18.5% above rs 100 million of fair market value. The rate of the band applies to the whole value.

Can the buyer adjust section 236K tax?

Yes. Section 236K(2) says the advance tax collected is adjustable. Its proviso makes the tax a final discharge of tax liability for a non-resident individual holding a POC, NICOP or CNIC who bought the property through a Foreign Currency Value Account or an NRP Rupee Value Account.

Who collects the tax, and when?

The person registering, recording or attesting the transfer collects it from the purchaser at that time. This includes a local authority, housing authority, housing society, co-operative society, public and private real estate projects, joint ventures, private commercial concerns and the registrar of properties. Where a property is paid for in instalments before transfer, the tax is collected with the instalments under section 236K(3).

Is any purchase outside section 236K?

Section 236K(4) says the section does not apply to a scheme introduced by the Federal Government, a Provincial Government or an authority under a Federal or Provincial law for expatriate Pakistanis, where payment is made in foreign exchange remitted from outside Pakistan through normal banking channels.