Property Tax in Pakistan: Buying, Selling, and Owning
Real estate is one of the most popular investment choices in Pakistan. However, whether you are buying a plot, selling a house, or simply owning a shop, there are various taxes you need to know about. Property tax in Pakistan is managed by both the FBR (Federal) and the Excise & Taxation department (Provincial). Our calculator helps you estimate the significant costs involved in property transactions for the Tax Year 2026.
Major Taxes on Property Transactions
When you buy or sell a property, you will encounter these main taxes:
- Advance Tax (Section 236K): Paid by the Buyer at the time of purchase. For Non-Filers, this can be as high as 10.5% of the property value.
- Capital Gains Tax (Section 236C): Paid by the Seller. The rate depends on how long you have owned the property before selling it.
- Stamp Duty: A provincial tax paid on the legal documents (E-Stamp) for the transfer of property.
- Annual Property Tax: A yearly tax paid to the Excise department for owning a built-up property (house or commercial building) in an urban area.
How to Use the Property Tax Calculator
- Transaction Type: Select if you are Buying or Selling.
- Enter Property Value: Use the DC Rate or FBR Rate (whichever is higher) as the base value.
- Mention Holding Period: If selling, specify how long you owned the property. Taxes are usually zero if you hold a property for several years (depending on current laws).
- Check Filer Status: Non-Filers pay significantly higher taxes at the time of registry.
DC Rate vs FBR Rate
Tax is not always calculated on the real "market price" you pay. Instead, the government has two types of fixed values: DC Rate (District Collector rate) and FBR Rate. Usually, your tax will be calculated on whichever value is higher. Our tool allows you to input the valuation provided by your local Patwari or housing society for the best accuracy.