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People buying or selling property in Pakistan will pay revised advance taxes following the implementation of the Finance Act 2026-27, which took effect on July 1.
The new rates apply under Sections 236C and 236K of the Income Tax Ordinance and are based on a property’s official DC valuation. Filers will continue to pay lower taxes than non-filers.
For a property with a DC value of Rs5 million, a seller who is an active filer will pay 2.75% advance tax, which comes to Rs137,500. A non-filer selling the same property will pay 5.5%, or Rs275,000.
On the buyer’s side, the advance tax under Section 236K has been set at 1.25% for filers, equal to Rs62,500 on a Rs5 million property. Buyers who are not on the Active Taxpayers List will pay 2.5%, bringing their tax to Rs125,000.
Besides advance tax, buyers also need to pay other official charges, including stamp duty, registration fees, mutation charges, biometric verification and service fees. The total cost may vary from one district to another, depending on local rules and the property’s official valuation.
Estimated Taxes on a Rs5 Million Property
| Category | Filer | Non-Filer |
|---|---|---|
| Seller Tax (236C) | Rs137,500 | Rs275,000 |
| Buyer Tax (236K) | Rs62,500 | Rs125,000 |
| Estimated Stamp Duty | Rs50,000 | Rs50,000 |
| Registration Fee | Rs10,000 | Rs10,000 |
| PLRA / Mutation Charges | Rs5,000 | Rs5,000 |
| Biometric Verification | Rs1,000 | Rs1,000 |
| Service Charges | Rs2,000 | Rs2,000 |
| Estimated Buyer Expenses | Rs130,500 | Rs193,000 |
Officials say the final amount payable can differ depending on the district, the type of property and its official DC valuation. If the government’s DC value is higher than the market price, taxes will be calculated on the higher valuation.
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