Buying or selling property in Pakistan can involve a significant amount of advance income tax at the time of transfer. For Tax Year 2027, the FBR Tax on Property in Pakistan has changed substantially under the Finance Act 2026, particularly for taxpayers appearing on the Active Taxpayers List (ATL).
The two main provisions are Section 236C, which applies to the seller or transferor of immovable property, and Section 236K, which applies to the buyer or transferee.
For Tax Year 2027, FBR’s current withholding tax rate card is updated up to 30 June 2026 under the Finance Act 2026.
This guide explains the latest buyer and seller rates, the difference between filer and non-filer treatment, and practical examples showing how much tax may be collected when property is transferred.
Table of Contents
What Is FBR Tax on Property in Pakistan?
When immovable property is bought, sold or transferred in Pakistan, advance income tax may be collected under the Income Tax Ordinance, 2001.
The two important sections are:
Section 236C: Advance tax collected from the seller or transferor of immovable property.
Section 236K: Advance tax collected from the buyer or transferee of immovable property.
FBR describes withholding tax generally as an advance payment of tax collected or deducted when specified economic transactions take place. The treatment can vary depending on the relevant provision.
For property transactions, your ATL status can make a major difference to the amount collected.
If you are unsure about your tax status, read our guide on Active Taxpayer vs Non-Active Taxpayer in Pakistan.
Section 236C – Tax on Seller of Property
Section 236C applies when a person sells or transfers immovable property.
For a person appearing on the Active Taxpayers List, the rate for Tax Year 2027 is now a flat 2.75% of the gross amount of consideration received.
This is an important change from Tax Year 2026, when ATL seller rates ranged from 4.5% to 5.5% depending on the transaction value.
The Finance Act 2026 replaced those progressive ATL rates with a lower flat rate. FBR’s Budget 2026-27 material confirms that the previous property advance-tax structure was reduced as part of the changes to Sections 236C and 236K.
Section 236C Rate for 2026-27
| Seller Status | Advance Tax Rate |
|---|---|
| ATL / Filer | 2.75% |
| Non-ATL / Non-Filer | 11.5% |
For an ATL seller, the 2.75% rate applies as a flat rate rather than changing according to the property’s value.
Section 236K – Tax on Buyer of Property
Section 236K applies to the purchaser or transferee of immovable property.
For Tax Year 2027, an ATL buyer is subject to a flat 1.25% advance tax on the fair market value of the immovable property.
The Finance Act 2026 changed the earlier slab-based ATL structure. The enacted provision specifies a 1.25% rate under Section 236K.
Section 236K Rates for 2026-27
| Fair Market Value | ATL / Filer | Non-ATL / Non-Filer |
|---|---|---|
| Up to Rs. 50 million | 1.25% | 10.5% |
| Above Rs. 50 million up to Rs. 100 million | 1.25% | 14.5% |
| Above Rs. 100 million | 1.25% | 18.5% |
Therefore, while an ATL buyer now benefits from one flat rate, the non-ATL buyer can face a substantially higher tax depending on the value of the property.
FBR Property Tax Rates 2026-27 at a Glance
The following table provides a simple summary of the FBR Tax on Property in Pakistan for Tax Year 2027:
| Transaction | Section | ATL Rate | Non-ATL Rate |
|---|---|---|---|
| Sale/Transfer of Property | 236C | 2.75% | 11.5% |
| Purchase up to Rs. 50 million | 236K | 1.25% | 10.5% |
| Purchase above Rs. 50m up to Rs. 100m | 236K | 1.25% | 14.5% |
| Purchase above Rs. 100 million | 236K | 1.25% | 18.5% |
Buying or selling property? Enter the property value, select Buyer (236K) or Seller (236C), and your taxpayer status to instantly estimate the applicable advance tax.
Use Property Tax Calculator →These rates apply to the federal advance income tax connected with property transactions. They should not be confused with provincial stamp duty, registration fees, capital value tax or other provincial/local charges that may also apply.
Filer vs Non-Filer Property Tax in Pakistan
The difference between ATL and non-ATL status becomes particularly important when dealing with expensive property.
Consider an ATL buyer purchasing property with a fair market value of Rs. 40 million.
At 1.25%, the advance tax under Section 236K would be:
Rs. 40,000,000 × 1.25% = Rs. 500,000
For a non-ATL buyer in the same value band:
Rs. 40,000,000 × 10.5% = Rs. 4,200,000
That is a difference of:
Rs. 3,700,000
This illustrates why checking your ATL status before completing a property transaction can be extremely important.
If you need to become a filer, see our step-by-step guide on How to Become a Filer in Pakistan.
Section 236C Calculation Example – Seller
Suppose an ATL taxpayer sells a property for:
Sale Consideration: Rs. 30,000,000
Applicable Section 236C rate:
2.75%
Calculation:
Rs. 30,000,000 × 2.75% = Rs. 825,000
Therefore, the advance income tax collected from the ATL seller would be:
Rs. 825,000
What If the Seller Is Not on ATL?
At the 11.5% non-ATL rate:
Rs. 30,000,000 × 11.5% = Rs. 3,450,000
The difference is substantial.
Section 236K Calculation Example – Buyer
Suppose an ATL taxpayer purchases a property having a fair market value of:
Rs. 50,000,000
Applicable rate:
1.25%
Calculation:
Rs. 50,000,000 × 1.25% = Rs. 625,000
Therefore, the advance income tax under Section 236K would be:
Rs. 625,000
If the buyer were non-ATL, the applicable rate in this value band would be 10.5%:
Rs. 50,000,000 × 10.5% = Rs. 5,250,000
Again, ATL status can make a very large difference.
Example for Property Above Rs. 100 Million
Suppose a property has a fair market value of:
Rs. 120,000,000
For an ATL buyer:
Rs. 120,000,000 × 1.25% = Rs. 1,500,000
For a non-ATL buyer, the applicable Section 236K rate for property exceeding Rs. 100 million is 18.5%:
Rs. 120,000,000 × 18.5% = Rs. 22,200,000
The difference between the two amounts is:
Rs. 20,700,000
For high-value property transactions, confirming tax status before transfer is therefore especially important.
What Changed from 2025-26 to 2026-27?
One of the most important changes introduced for Tax Year 2027 is the replacement of the earlier value-based ATL rates with flat rates.
| Section | Tax Year 2026 ATL Rates | Tax Year 2027 ATL Rate |
|---|---|---|
| 236C – Seller | 4.5% to 5.5% | 2.75% flat |
| 236K – Buyer | 1.5% to 2.5% | 1.25% flat |
The earlier separate late-filer property rate tier has also been removed from the Tax Year 2027 structure; the current FBR rate card is issued under the Finance Act 2026.
This makes the ATL calculation considerably simpler because an ATL taxpayer no longer needs to determine a different rate based on the property’s value for Sections 236C and 236K.
Who Collects Tax Under Sections 236C and 236K?
The tax is generally collected at the time the property transfer is being registered, recorded or attested by the responsible authority.
Depending on the transaction, this may involve the relevant registrar, authority, housing society or another person responsible for registering or recording the transfer.
The tax payment is normally generated through FBR’s payment system and recorded against the taxpayer.
Always verify that the correct:
- CNIC or NTN
- Tax section
- Tax year
- Property value
- ATL status
- Payment amount
has been used before making payment.
For guidance on FBR payments, see our FBR CPR Online Guide.
Is Tax Under 236C and 236K Final Tax?
Sections 236C and 236K deal with advance tax collected in connection with a property transaction. It should not automatically be treated as the same thing as the taxpayer’s final annual income-tax liability.
FBR explains that withholding taxes may have different treatments depending on the relevant provision, including amounts that are adjustable against the taxpayer’s final liability.
Taxpayers should therefore properly report the transaction and relevant tax payment when filing their Income Tax Return.
If you need help understanding the return process, see How to File Income Tax Return Online in Pakistan.
Property Value and Tax Calculation
Another common mistake is assuming that every property-related tax is calculated using exactly the same value.
Under Section 236C, the tax applies to the gross amount of consideration received by the seller.
Under Section 236K, the tax applies to the fair market value of the immovable property.
These concepts should not automatically be confused with the property’s market asking price or with values used for every provincial levy.
FBR separately maintains valuation tables for immovable properties, which should be checked where relevant to the transaction. FBR lists property valuation tables among its withholding-tax resources.
Overseas Pakistanis and Sections 236C & 236K
Special facilitation is available for certain Overseas Pakistanis.
FBR states that an Overseas Pakistani holding a POC or NICOP who qualifies as a non-resident may avail the filer rate for advance income tax under Sections 236C and 236K even if that person is otherwise a non-filer, subject to the prescribed conditions and verification procedure.
FBR’s guidance specifies, among other conditions, that the person must hold POC or NICOP and qualify as non-resident under the applicable requirement. The transaction follows a prescribed PSID and approval process.
Therefore, an eligible Overseas Pakistani should not simply assume that the ordinary non-filer property rate automatically applies.
FBR Guidance for Overseas Pakistanis – Sections 236C & 236K
Important Precautions Before Buying or Selling Property
Before completing a property transaction, both parties should confirm their ATL status and verify the tax calculation.
The buyer should particularly check the fair market value being used for Section 236K, while the seller should verify the consideration used for Section 236C.
Do not rely solely on an old property-tax chart downloaded from social media or saved from a previous tax year. Rates changed significantly from 1 July 2026, and an outdated table can produce a very different tax amount.
Also remember that Sections 236C and 236K represent federal advance income tax. A property transaction may involve other taxes, duties and fees under federal, provincial or local laws.
Frequently Asked Questions
What is the FBR property tax rate for a filer in 2026-27?
For Tax Year 2027, an ATL seller is generally subject to 2.75% under Section 236C, while an ATL buyer is subject to 1.25% under Section 236K.
What is Section 236C?
Section 236C relates to advance income tax collected from the seller or transferor of immovable property.
What is Section 236K?
Section 236K relates to advance income tax collected from the buyer or transferee of immovable property.
Is the 236K rate different for expensive property?
For an ATL taxpayer, the Tax Year 2027 rate is a flat 1.25%. For a non-ATL person, the rate remains value-based and can be 10.5%, 14.5% or 18.5% depending on the property’s fair market value.
Is Section 236C calculated on property value?
Section 236C is calculated on the gross amount of consideration received by the seller.
Can an Overseas Pakistani get the filer rate?
Yes, certain non-resident Overseas Pakistanis holding a valid POC or NICOP may qualify for filer-rate treatment under Sections 236C and 236K through FBR’s prescribed procedure.
Should I check my ATL status before buying property?
Yes. ATL status can materially affect the advance tax collected on a property transaction. It is sensible to verify your status before completing the transfer.
Final Words
The FBR Tax on Property in Pakistan has become simpler for ATL taxpayers in 2026-27.
For Tax Year 2027, the key rates are:
Seller – Section 236C: 2.75% for ATL taxpayers
Buyer – Section 236K: 1.25% for ATL taxpayers
Non-ATL taxpayers can face substantially higher rates, particularly buyers of high-value properties.
Before completing any property transaction, verify your ATL status, the applicable property value, the relevant tax section and the amount shown on the payment document.
For the latest official rates, taxpayers can also check FBR’s current Tax Year 2027 withholding tax rate card, which FBR identifies as updated up to 30 June 2026 under the Finance Act 2026.
FBR Withholding Tax Rate Card – Tax Year 2027
Disclaimer
This article is for general informational and educational purposes only and should not be considered professional tax or legal advice. Tax laws, rules, rates, property valuations, filing requirements and FBR procedures may change from time to time. Although TaxInfo.pk aims to provide accurate and updated information, taxpayers should verify the latest requirements from the Federal Board of Revenue (FBR) or consult a qualified tax professional where necessary.
