What changed in Budget 2026-27
For filers, the Finance Act 2026 replaced the old sliding scale with a single 1.25% rate. That's a real cut for anyone buying a home, especially in the Rs 50 million to Rs 100 million range where rates used to be several times higher. Non-filers saw no such relief. Their rates stay steep on purpose, to push buyers onto the tax roll.
Rates at a glance
| Property value | Filer | Non-filer |
|---|---|---|
| Up to Rs 50 million | 1.25% | 10.5% |
| Rs 50 – 100 million | 1.25% | 14.5% |
| Above Rs 100 million | 1.25% | 18.5% |
| Property value | Filer pays | Non-filer pays |
|---|---|---|
| Rs 10,000,000 | Rs 125,000 | Rs 1,050,000 |
| Rs 25,000,000 | Rs 312,500 | Rs 2,625,000 |
| Rs 50,000,000 | Rs 625,000 | Rs 5,250,000 |
| Rs 75,000,000 | Rs 937,500 | Rs 10,875,000 |
| Rs 150,000,000 | Rs 1,875,000 | Rs 27,750,000 |
Which value is used?
Tax is worked out on the "fair market value" fixed by FBR's valuation tables for that area, or the provincial DC rate, whichever applies. It is not simply the price written in your sale agreement. In big cities FBR values are often close to market prices now. In smaller towns they can be well below. Ask the registrar's office or your property dealer for the official value before you budget.
A worked example
Imran is buying a 10-marla house in Lahore with an FBR value of Rs 25 million. Imran is a filer, so the advance tax is 1.25%, or Rs 312,500. If he hadn't filed a return, it would be 10.5%, or Rs 2,625,000. The difference, Rs 2,312,500, is far more than the cost of hiring someone to file a return.
Is this tax adjustable?
Yes. Tax paid under Section 236K is an advance tax. You can claim it against your income tax liability when you file your return for that year. If your total tax for the year is lower than what you've already paid, you can claim a refund. That's another reason to keep the payment receipt (the CPR) safe.
Other costs on top
Advance income tax is only one part of the bill. Expect provincial stamp duty, registration fees, a town or society transfer fee, and possibly capital value tax depending on the province. Federal excise duty on first sale by builders has applied in some years too. Together, these can add another few percent. Our calculator covers only the federal income tax part.
Buying jointly
If a husband and wife buy a property together, the tax is generally split by their share. Each buyer's own filer status decides their rate. If one spouse is a non-filer, their share is taxed at the higher rate, so it's worth getting both on the ATL before the transfer date.
Checklist before the transfer
- Confirm your ATL status a week before the transfer date, not on the day.
- Get the official valuation for the property from the registrar or society office.
- Arrange a pay order or online payment for the advance tax in your own name.
- Keep the CPR (payment receipt). You'll need it for your return and, later, as part of the property's cost when you sell.
- Add the property to your wealth statement for the year you bought it, with the source of funds clearly explained.
That last point is important. FBR will compare the purchase with your declared income and savings. If the money came from a gift, an inheritance or a loan, keep documents that prove it.
Related calculators
- Property sale tax calculator, for what the seller pays at the same transfer.
- Rental income tax calculator, if you plan to rent the property out.
- Property capital gains calculator, to see how a future sale would be taxed.
Frequently asked questions
What is the 236K tax rate for filers in 2026-27?
1.25% of the property's value, regardless of the price.
What do non-filers pay?
10.5% for property valued up to Rs 50 million, 14.5% from Rs 50 to 100 million, and 18.5% above Rs 100 million.
Who collects the tax?
The registering authority, such as the sub-registrar, a development authority or a housing society, collects it before transferring the property.
Can I get this tax back?
It is adjustable against your income tax for the year, and any excess can be claimed as a refund when you file.
Rates: Income Tax Ordinance 2001 and its schedules as amended by the Finance Act 2026, plus FBR's withholding tax rate card for Tax Year 2027. Results are estimates. Check with FBR or a tax adviser before acting on them.