How the seller's tax works
At the time of transfer, the registering authority collects advance tax from the seller. It's charged on the property's official value, which is the FBR valuation or provincial DC rate, not the price you agreed with the buyer. Budget 2026-27 set a single filer rate of 2.75%, and kept non-filers at 11.5%.
| Seller status | Rate | Tax on Rs 10 million | Tax on Rs 50 million |
|---|---|---|---|
| Filer | 2.75% | Rs 275,000 | Rs 1,375,000 |
| Non-filer | 11.5% | Rs 1,150,000 | Rs 5,750,000 |
Advance tax vs capital gains tax
People often mix these up. Section 236C advance tax is collected on every sale, profit or loss, at the moment of transfer. Capital gains tax under Section 37 is charged on your actual profit, if any, and settled through your return. The 236C tax you paid counts towards your total tax for the year, so in many cases it covers some or all of the gains tax. Work out the gains part with our property capital gains tax calculator.
A worked example
Ayesha sells a plot in Islamabad with an FBR value of Rs 18 million. She's a filer, so she pays Rs 495,000 as advance tax at the CDA office. Her brother Usman sells a similar plot but hasn't filed his return in years. He pays Rs 2,070,000. Filing a return before the sale would have saved him Rs 1,575,000.
Exemptions to know about
Certain transfers don't attract 236C, or attract it at reduced rates. These have included transfers to family members under a gift, some inherited property, and properties held for a long period. The details change between budgets, so check with the registrar or a tax adviser if you think one applies.
Serving and retired members of the armed forces and federal and provincial government employees have had special treatment for their first property allotted under a government scheme. If that's you, ask about it before paying.
Plan the timing
Your filer status is checked on the day of transfer. If you're not on the Active Taxpayers List yet, filing your return and paying the late-filing surcharge before the sale can drop your rate from 11.5% to 2.75%. On a property worth tens of millions, that's a saving worth planning a few weeks around.
Keep the tax receipt with your sale documents. You'll need it when you file your return for the year of sale, and again if FBR ever asks how the capital gain was taxed.
Overseas Pakistanis selling property
Overseas Pakistanis holding a valid NICOP or POC have at times received special treatment on property transactions, separate from the normal filer rules. If it applies, it can make a large difference on 236C. Check with the registrar or a tax adviser whether it applies at the time of your sale, and carry your documents.
Selling property inherited from parents
Families often sell inherited property years after a parent's death. Each heir is generally treated as selling their own share, and each heir's own filer status decides their 236C rate. Before the sale, get the inheritance mutation done properly and make sure each heir who's selling is on the ATL. One non-filer sibling can mean a much larger deduction on their share.
Related calculators
- Property capital gains calculator, to work out the tax on your actual profit.
- Property purchase tax calculator, to see what your buyer will pay under 236K.
- Rental income tax calculator, if you're deciding between selling and renting out.
One last tip: ask the buyer's side to confirm the official value with the registrar before the transfer day. Disputes over value are the most common reason transfers get delayed.
Frequently asked questions
What is the 236C rate for 2026-27?
2.75% for filers and 11.5% for non-filers, on the property's official value.
Is 236C the same as capital gains tax?
No. 236C is an advance tax collected on transfer. Capital gains tax is charged on your profit and settled through your return, with the 236C amount adjustable against it.
Who pays 236C, the buyer or the seller?
The seller. The buyer pays separate advance tax under Section 236K.
Do I pay 236C if I sell at a loss?
Yes. It's charged on the property value at transfer, whether or not you make a profit.
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.