What it costs to buy or sell property in Pakistan in 2026: 236K, 236C, stamp duty and transfer fees
Every tax and fee on a property transfer in Pakistan for tax year 2026-27 — the buyer's 236K, the seller's 236C, Punjab stamp duty and registration, CVT, and society transfer charges — with worked examples for a filer and a non-filer.
By Kothi Editorial · 15 September 2026 · 6 min read
The price on the listing is not what changes hands. On top of it sit a federal advance tax on the buyer, a federal advance tax on the seller, provincial stamp duty and registration, and — inside a housing society — the society's own transfer charges. This guide lays out each one for the 2026-27 tax year, says who pays it, and works through the numbers on a Rs 3 crore house.
How current is this? Written on 15 September 2026 against the Finance Act 2026 (federal) and the Punjab schedule in force at the time. Rates change with every budget in June. Before you pay, confirm the figure on the FBR portal or with the sub-registrar — and keep the receipt.
The four layers of cost
| Layer | Who sets it | Paid by | Where it is paid |
|---|---|---|---|
| Advance income tax, section 236K | Federal (FBR) | Buyer | At transfer, through the registrar or the society |
| Advance income tax, section 236C | Federal (FBR) | Seller | At transfer |
| Stamp duty, registration fee, CVT | Provincial (Punjab, Sindh, KP…) | Buyer, by convention | e-Stamp and sub-registrar, or the society's one-window |
| Transfer fee, NDC, membership | The society (DHA, Bahria, LDA scheme…) | Buyer, mostly | The society's transfer office |
Nothing here goes to the agency. An agency's commission is separate and negotiated — in Punjab the custom is 1% from each side on a sale, though it varies.
236K — the buyer's advance tax
Section 236K of the Income Tax Ordinance is collected from the buyer when a property is registered or transferred. It is an advance tax: a filer can set it off against the year's income tax; a non-filer generally cannot, which is the point of the higher rate.
For tax year 2026-27 the Finance Act 2026 replaced the old value bands with one rate for filers:
| Buyer | 236K rate |
|---|---|
| Active taxpayer (filer) | 1.25% of the value |
| Not on the Active Taxpayers List | 10.5% of the value |
"Value" means the higher of the FBR's notified valuation for that area and the declared price. Until 2025-26 filers paid 1.5% on properties up to Rs 5 crore and more above that; the bands are gone for 2026-27.
236C — the seller's advance tax
Section 236C is collected from the seller at the same moment.
| Seller | 236C rate |
|---|---|
| Active taxpayer (filer) | 2.75% |
| Not on the Active Taxpayers List | 11.5% |
There are exemptions worth knowing: a property held for a long period may be treated differently for capital-gains purposes, and certain transfers (inheritance, gift to a close relative — hiba) are not sales at all. Ask a tax adviser before you rely on one.
Section 7E — the deemed-income tax on property that had to be cleared before a sale, through a certificate or a 1% payment — was abolished in the 2026-27 budget. If a society still asks for a 7E certificate, ask them to confirm the current requirement.
Provincial charges (Punjab)
These are set by the province and paid through Punjab's e-Stamp system and the sub-registrar — or at the one-window counter that the Punjab Land Records Authority and FBR now run together, which is what lets a Lahore transfer happen in one visit.
| Charge | Punjab, urban property | Notes |
|---|---|---|
| Stamp duty | 1% | Of the DC (collector) value or declared value, whichever is higher |
| Registration fee | 1% | Capped in some categories |
| Capital Value Tax (CVT) | About 1–2% | Punjab's rate has moved between budgets; confirm the current figure |
| Land record / PLRA charges | Small fixed fees | A few thousand rupees |
Sindh and KP have their own schedules; Karachi buyers should check the Sindh e-stamp and the Board of Revenue's current rates.
Society transfer charges
If the property is in DHA, Bahria Town, an LDA scheme or any other society that keeps its own register, the transfer happens at the society's transfer office, and it has its own fees:
- No Demand Certificate (NDC) — the society confirms there are no outstanding dues or objections on the plot. It is the first step; nothing transfers without it. The seller usually obtains it.
- Transfer fee — set by the society, by plot size, and revised every year or two. In DHA Lahore a standard transfer takes about 30 working days; paid "executive" transfers are faster.
- Membership or affidavit fees — small, but on the list.
The society collects 236K and 236C at the same counter and remits them to FBR, so you will see the federal tax on the society's challan.
Worked example: a Rs 3 crore house in Lahore
Assume the FBR valuation and the declared price are both Rs 3,00,00,000, the buyer and seller are both filers, and it sits in an LDA-approved scheme registered through the sub-registrar.
| Filer buyer | Non-filer buyer | |
|---|---|---|
| 236K advance tax | Rs 3,75,000 (1.25%) | Rs 31,50,000 (10.5%) |
| Stamp duty (1%) | Rs 3,00,000 | Rs 3,00,000 |
| Registration fee (1%) | Rs 3,00,000 | Rs 3,00,000 |
| CVT (say 1%) | Rs 3,00,000 | Rs 3,00,000 |
| Buyer's total | about Rs 12.75 lakh | about Rs 40.5 lakh |
| Filer seller | Non-filer seller | |
|---|---|---|
| 236C advance tax | Rs 8,25,000 (2.75%) | Rs 34,50,000 (11.5%) |
The gap between filer and non-filer on the buyer's side alone is more than Rs 27 lakh on this house. Getting onto the Active Taxpayers List before a transfer — which takes filing a return — is the single largest saving available to most buyers.
Before you pay anything
- Check the FBR valuation table for the area. Tax is charged on the higher of the table value and the price, so an "under-declared" price does not reduce the tax the way people assume.
- Confirm ATL status for both parties on the FBR portal on the day of transfer. Status is checked on the date the tax is collected.
- Get the NDC before paying a token in any society. A plot with dues or a dispute cannot transfer, whatever the seller says.
- Verify ownership first — our guide to checking property documents walks through the fard, registry, mutation and society records.
- Keep every challan. The 236K receipt is what you will claim against your return.
On Kothi, every listing carries the reference of the one agency authorised for its area — so the person walking you through this is the person who works that street, not a stranger with a forwarded photo.
Questions people ask
Q: Who pays 236K and who pays 236C?
The buyer pays 236K and the seller pays 236C. Both are collected at the moment of transfer, by the registrar or the housing society, and remitted to FBR.
Q: What is the 236K rate for a filer in 2026-27?
1.25% of the property's value for an active taxpayer. Non-filers pay 10.5%. The old value bands were removed by the Finance Act 2026.
Q: Is stamp duty in Punjab still 1%?
Yes — 1% of the higher of the DC value and the declared price for urban property, paid through e-Stamp, plus a 1% registration fee.
Q: Do I pay tax on the listing price or the FBR value?
On whichever is higher. FBR publishes valuation tables by area; if your price is below the table, the table value is used.
Q: Does the estate agency's commission count as a transfer cost?
No. Commission is a private arrangement — commonly 1% from each side on a sale in Punjab — and nothing in this article goes to the agency.
Sources: Finance Act 2026 summaries from tax practitioners (TaxToday, IK ConsulTax, Baco Consultants, Manahil Estate); Punjab e-Stamp and PLRA guidance; DHA Lahore transfer guidance (DHA Real Estate, Mohsin Estate). Figures as of September 2026.