Buying or selling property in Pakistan means paying two layers of charges: federal taxes collected by the FBR, and provincial charges collected by Sindh (in Karachi).
Buying or selling property in Pakistan means paying two layers of charges: federal taxes collected by the FBR, and provincial charges collected by Sindh (in Karachi). The June 2026 budget (Finance Act 2026, effective 1 July 2026) cut the federal property taxes sharply for tax-filers — so your filer status now matters more than ever. Here's what a buyer and a seller actually pay.
The buyer pays advance income tax at the time of purchase, withheld at transfer. From 1 July 2026 the filer rate became a flat percentage instead of the old value-tiered rates. Non-filers still pay steep, value-tiered rates.
The FBR's budget-day summary quoted 1.5% for filers; post-passage guidance settled on 1.25%. Confirm the exact figure in the current FBR notification.
The seller pays advance tax under Section 236C — reduced to a flat 2.75% for filers in the 2026 budget (non-filers around 11.5%). The old "late-filer" category was abolished, so it's now simply filer versus non-filer.
On top of that, the seller pays Capital Gains Tax (CGT) on any profit. For property acquired on or after 1 July 2024, filers pay a flat 15% on the gain regardless of how long they held it. Property bought on or before 30 June 2024 still follows the older holding-period slabs, where the rate steps down the longer you held it (reaching 0% after the maximum period). Non-filers are taxed at slab rates with a 15% floor.
Two unpopular levies have been removed, lowering total transaction cost: the 3% Federal Excise Duty on property transfer (withdrawn from 1 July 2025) and Section 7E, the notional "deemed rent" tax on the value of property you own (abolished from 1 July 2026).
Separately from FBR taxes, Sindh levies charges on the recorded/DC value at registration — indicatively stamp duty (~2%), registration fee (~1%), town tax (~1%) and Capital Value Tax (~2–2.5%, mainly on larger residential and commercial property). Combined, these typically add roughly 4–6% of the recorded value. Exact percentages vary by locality and property type — check the Sindh e-stamping portal or your sub-registrar.
Pakistan charges non-filers roughly double on most transactions. On a property purchase the gap is enormous — a filer buyer pays 1.25% while a non-filer can pay up to 18.5%. If you plan to buy, getting onto the Active Taxpayers List (ATL) before you transact can save you millions of rupees. Verify a party's ATL status on the FBR website at the time of the deal.
For a PKR 3 crore house bought by a filer: 236K advance tax at 1.25% ≈ PKR 3.75 lakh, plus Sindh provincial charges of ~4–6% (on the recorded value) ≈ PKR 12–18 lakh. The same purchase by a non-filer would attract 236K at 10.5% ≈ PKR 31.5 lakh — before any provincial charges. Figures are indicative; your actual cost depends on the FBR/DC value and current rates.
Planning a purchase or sale? Use the free Zell Estimate to gauge value, the mortgage calculator to plan financing, and read our property buying process guide. For DHA specifically, see the DHA Karachi transfer guide.