Property Stamp Duty & Transfer Taxes in Pakistan: Province Guide

Q: What is the difference between a filer and non-filer for property taxes post-Budget 2026-27?

Under Budget 2026-27, Section 236K and 236C are now flat rates for everyone — the filer/non-filer distinction no longer affects property WHT rates. However, filer status still matters for other transactions (bank withdrawals, dividends, etc.).

Q: I am buying property worth Rs. 50 million. What are my total taxes?

- 236K (buyer WHT): Rs. 50M × 1.5% = Rs. 750,000 - CVT: Rs. 50M × 2% = Rs. 1,000,000 - Stamp Duty (Punjab): Rs. 50M × 5% = Rs. 2,500,000 - Total: Rs. 4,250,000 (plus any DC rate difference if DC value exceeds transaction price)

Buying property in Pakistan involves multiple taxes and duties on top of the purchase price. Understanding these costs upfront prevents nasty surprises at registration. This guide covers all the key taxes — stamp duty, withholding tax, and Capital Value Tax — with the latest rates effective after Budget 2026-27.

Budget 2026-27 update: Withholding tax rates on property transactions changed significantly from July 1, 2026. Buyer WHT (Section 236K) is now 1.5% flat; seller WHT (Section 236C) is 2.75% flat. Section 7E (deemed income on undeveloped plots) is abolished. See our full property tax guide for detailed analysis.

Total Buying Cost: What to Expect

For a property purchased at Rs. 10 million (typical urban apartment/plot, after July 1, 2026):

Cost Component	Rate	Amount
Property price	—	Rs. 10,000,000
Stamp Duty (Punjab)	5%	Rs. 500,000
Capital Value Tax (CVT)	2%	Rs. 200,000
Section 236K (Buyer WHT)	1.5% flat	Rs. 150,000
Total outlay		Rs. 10,850,000

Use the Property Stamp Duty Calculator for an exact breakdown by province and property value.

Stamp Duty by Province

Stamp duty is a provincial tax levied on the execution of property transfer documents. Rates vary by province:

Province	Stamp Duty Rate
Punjab	5% of property value
Sindh	3% (additional 2% urban immovable property tax)
KPK	6–7% (varies by district)
Balochistan	5%

Stamp duty applies to the higher of the actual transaction price or the DC (Deputy Commissioner) rate.

DC Rates: The Minimum Valuation

The Deputy Commissioner (DC) rate is the government’s minimum assessed value for property in each locality. If you buy a plot at Rs. 5 million but the DC rate for that plot is Rs. 6 million, all taxes (stamp duty, CVT, WHT) are calculated on Rs. 6 million.

DC rates are revised periodically by provincial governments. FBR separately maintains the “Deemed Fair Market Value” for Section 7E purposes — but since Section 7E is now abolished (July 1, 2026), only provincial DC rates matter for stamp duty and CVT.

Section 236K: Buyer Withholding Tax

Effective July 1, 2026: A flat 1.5% of the transaction value — regardless of filer/non-filer status, regardless of property value.

Previously, this was tiered (3–20% depending on value and filer status). The simplification is a major win for buyers.

How it is paid: The buyer pays 236K at the time of registration, typically through the sub-registrar. It is deposited with FBR and adjustable against your annual tax return.

Section 236C: Seller Withholding Tax

Effective July 1, 2026: A flat 2.75% of the transaction value — regardless of filer/non-filer status.

Previously, this was 4–10% (tiered). The simplification reduces the cost of selling documented property.

How it is paid: Collected from the seller at the time of deed registration.

Capital Value Tax (CVT)

Rate: 2% of the transaction value (unchanged by Budget 2026-27).

CVT is a federal tax levied on immovable property transactions. It applies uniformly to all buyers. Unlike WHT (which is adjustable against your return), CVT is a cost — not a pre-payment of income tax.

Section 7E: Abolished from July 1, 2026

Section 7E imposed income tax on the “deemed income” from immovable property — calculated as 5% of the Fair Market Value, taxed at the applicable income tax slab rate. This meant even if your plot generated zero rental income, you owed tax as if it did.

This provision is completely abolished from July 1, 2026. Existing Section 7E assessments and disputes are expected to be dropped.

Total Cost Comparison: Before and After Budget 2026-27

Property value: Rs. 20 million (above Rs. 10M threshold), non-filer buyer/seller

Tax	Pre-Budget (Non-Filer)	Post-Budget (Flat)
236K (Buyer WHT)	Rs. 4,000,000 (20%)	Rs. 300,000 (1.5%)
236C (Seller WHT)	Rs. 2,000,000 (10%)	Rs. 550,000 (2.75%)
CVT	Rs. 400,000 (2%)	Rs. 400,000 (2%)
Stamp Duty (Punjab)	Rs. 1,000,000 (5%)	Rs. 1,000,000 (5%)
Total transfer cost	Rs. 7,400,000	Rs. 2,250,000

The savings on a Rs. 20M transaction exceed Rs. 5 million for a previously non-filer buyer.

Frequently Asked Questions

What is the difference between a filer and non-filer for property taxes post-Budget 2026-27?

Under Budget 2026-27, Section 236K and 236C are now flat rates for everyone — the filer/non-filer distinction no longer affects property WHT rates. However, filer status still matters for other transactions (bank withdrawals, dividends, etc.).

I am buying property worth Rs. 50 million. What are my total taxes?

236K (buyer WHT): Rs. 50M × 1.5% = Rs. 750,000
CVT: Rs. 50M × 2% = Rs. 1,000,000
Stamp Duty (Punjab): Rs. 50M × 5% = Rs. 2,500,000
Total: Rs. 4,250,000 (plus any DC rate difference if DC value exceeds transaction price)

Is the Section 7E abolition permanent?

It is abolished via Finance Act 2026 — a federal statute. It would require another Finance Act to reinstate it. For now, it is gone.

Can I get a refund on WHT I paid?

Yes. 236K and 236C are advance tax — adjustable against your annual income tax return. If your total tax liability is less than the WHT you paid, you can file for a refund.

Tax rates reflect Finance Act 2026, effective July 1, 2026. Always verify current rates at fbr.gov.pk before finalising any transaction. For educational purposes only.