Property Tax in Pakistan 2025 – DC Rates, FBR Values & Complete Tax Guide

Mastering property tax rules in Pakistan can have a HUGE impact on your real estate deals, investment returns, and compliance.

In this guide, you’ll discover how to:

• Understand DC rates and FBR valuation tables
• Calculate property tax in Pakistan step by step
• Know the difference between filer, non-filer, and late filer tax rates
• Learn about Advance Tax, Capital Gains Tax (CGT), Stamp Duty, and Federal Excise Duty (FED)
• Avoid costly mistakes during property transfers
• Plan smarter for buying, selling, or investing in 2025, and more

Let’s get started!

Key Takeaways for Buyers and Sellers

• Taxes apply on both sides – Buyers pay stamp duty, CVT, and advance tax (section 236K), while sellers pay advance tax (section 236C).
• The filer vs non-filer gap is huge – Filers save almost half in taxes compared to non-filers, whether buying or selling.
• Plan before the deal – Always calculate total cost (buyer) and net return (seller) to avoid surprises.
• Documentation matters – Proper reporting ensures smooth transfer and prevents penalties.
• Real estate taxes are unavoidable – Budget them into your transaction instead of treating them as afterthoughts.

Property Tax in Pakistan 2025: The Definitive Guide

This guide gives you a clear overview of property taxes in Pakistan. Real estate is one of the most taxed sectors in the country. Property tax contributes a large share to Pakistan’s GDP and is a major source of government revenue.

The 2024–2025 budget continues this trend. The Federal Board of Revenue (FBR) manages and collects property taxes throughout the country.

Rates differ if you are a filer, non-filer, or late filer. In the next sections, you’ll see how the new property taxes for 2025 affect real estate buyers, sellers, and overseas investors.

The best part? Everything here is up-to-date for 2025.

With my 10+ years of experience as a Transfer Officer, I’ll break down every detail in simple language so you can handle property transactions with confidence.

So, without further delay, let’s dive in.

Overseas Pakistanis, don’t miss out on your tax exemption benefits! Stay informed and take action today—discover how you can maximise your rights and savings.

In this post, you will explore:

• What is FBR Property Tax
• How much tax on property
• Types of property taxes
• Advance Tax
• For Buyer (236-K)
• For Seller (236-C)
• Who collects
• Capital Gain Tax (CGT)
• Stamp Duty
• Federal Excise Duty
• How to pay

What Is FBR Property Tax?

The Federal Board of Revenue (FBR) is Pakistan’s main tax authority. It collects federal taxes and enforces tax laws nationwide. When it comes to real estate, the FBR sets property tax rules, publishes valuation tables, and oversees the collection of taxes.

Now, to make things clear, the FBR divides taxpayers into three categories:

• Filer – A filer is someone who submits income tax returns on time and appears on the Active Taxpayers List (ATL). Because they comply with tax laws, filers enjoy lower property tax rates.
• Late Filer – On the other hand, a late filer misses the 30th September deadline or delays tax payments. As a result, they face penalties and sometimes higher rates.
• Non-Filer – Finally, a non-filer does not file tax returns at all and is not on the ATL. Therefore, they pay much higher property tax rates compared to filers.

In addition to FBR taxes, you should also know that the provincial and local governments impose their own property tax levy. This levy is charged as a percentage of the property’s assessed DC value (District Collector rate).

So, when you buy, sell, or even hold real estate in Pakistan, you pay both federal and provincial taxes. This combined system is why understanding FBR property tax is so important before making any property deal.

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Key Highlights

The bottom line is that on-road properties have higher DC rates than off-road properties.

A key takeaway is to determine a property’s DC value. First, check if it’s located on-road or off-road. Next, use the corresponding DC rate for that area. Additionally, ensure you’re using the correct rate to avoid errors. Finally, the DC rate is applied to calculate the property’s value.

How much tax is on your property?

A question a property buyer or seller asks is:

How much is the tax on property in Pakistan?

The answer to this question is:

First, you need to know the DC rate. The DC rate varies by area and is set by the provincial government.

To calculate your property tax, follow these steps:

• Step No.1: Find your District or Tehsil’s DC Rate list for 2025.
• Step No.2. Check the rate for your area.
• Step No.3. Calculate your tax based on that rate.

Types of Property Taxes in Pakistan

Four common types of property taxes in Pakistan are:

1. Advance Property Tax

2. Capital Gain Tax (CGT)

3. Federal Excise Duty (FED)

4. Stamp Duty

Read also: A step-by-step guide on the Property Transfer procedure in Pakistan that has all you need to know. It may be a gift transfer or a transfer to legal heirs (Inheritance).

Advance Property Tax (Withholding Tax)

Advance Property Tax (also known as Withholding Tax) is a prepaid tax on property purchases or sales.

This tax is triggered as soon as you buy or sell a property. With that, you need to pay as per your tax status.

Here’s a breakdown of the Advance Property Tax rates. It is based on the property’s value and the taxpayer’s status:

Immoveable Property (236K) – (on Buying a Property)

When you buy a property, the following tax ratios apply as per your status as a taxpayer with the FBR:

Here’s a step-by-step procedure to calculate the property buyer tax:

Step 1: Determine the DC Value

To determine the DC value of a property, first, check if it’s located on-road or off-road. Next, use the corresponding DC rate for that area. Additionally, ensure you’re using the correct rate to avoid errors. Finally, the DC rate is applied to calculate the property’s value.

On-road refers to properties located on the main road, whereas off-road properties are those not situated on the main road, but rather in streets.  

On-road properties have higher DC rates than off-road properties.

Suppose:

– If the 5 Marla plot is on the main road: DC Value = Rs. 2,400,000

– If the 5 Marla plot is off-road: DC Value = Rs. 2,065,500

Step 2: Determine the Tax Rate

The tax rate depends on your current status as a taxpayer. Below are the tax ratios.

• Filer: 3%       
• Late Filer: 6%
• Non-filer: 12%

Step 3: Calculate the Property Buyer’s Tax

Multiply the DC Value by the applicable tax rate

Formula for Advance Tax (For Buyer: 236K) = DC Value of the property X Tax Ratio (Taxpayer status)

Calculations:

Filer (3%)

• Main Road: Rs. 2,400,000 x 3% = Rs. 72,000
• Off-Road: Rs. 2,065,500 x 3% = Rs. 61,965

Late Filer (6%)

• Main Road: Rs. 2,400,000 x 6% = Rs. 144,000
• Off-Road: Rs. 2,065,500 x 6% = Rs. 123,930

Non-filer (12%)

• Main Road: Rs. 2,400,000 x 12% = Rs. 2,88,000
• Off-Road: Rs. 2,065,500 x 12% = Rs. 2,47,860

Note: These calculations are based on the provided DC values and tax rates.

Immoveable Property (236C) – On Selling a Property

When you sell a property, the following tax ratios apply as per your taxpayer status with the FBR:

Read also: Real Estate Area guides have everything you need to know.

Property Seller Tax Calculation

The DC value for the property will be the same as for the buyer. However, the tax ratios vary for sellers (as per section 236-C).

The difference is in the ratio of non-filers. The non-filers buyer ratio is 12%, while the non-filers seller ratio is 10%.  

Step 1: Determine the DC Value

  Suppose:

• If the 5-Marla plot is on the main road: DC Value = Rs. 2,400,000
• If the 5-Marla plot is off-road: DC Value = Rs. 2,065,500

Step 2: Determine the Tax Rate

The tax rate depends on your current status as a taxpayer. Below are the tax ratios.

• Filer: 3%       
• Late Filer: 6%
• Non-filer: 10%

Step 3: Calculate the Property Seller’s Tax

Multiply the DC Value by the applicable tax rate

Formula for Advance Tax (For Seller: 236-C) = DC Value of the property X Tax Ratio (Taxpayer status)

Example Calculations: (Filer)

•    DC Value (main road): Rs. 2,400,000 x 3% = Rs. 72,000
•    DC Value (off-road): Rs. 2,065,500 x 3% = Rs. 61,965

Late Filer (6%)

• Main Road: Rs. 2,400,000 x 6% = Rs. 144,000
• Off-Road: Rs. 2,065,500 x 6% = Rs. 123,930

Non-filer (10%)

• Main Road: Rs. 2,400,000 x 10% = Rs. 240,000
• Off-Road: Rs. 2,065,500 x 10% = Rs. 206,550

Who Collects Advance Tax on Property?

The property transfer authorities collect advance tax on behalf of the FBR when you buy or sell property. Being withholding agents, they are allowed to receive an advance tax. This includes:

• The Sub-Registrar/Registrar
• Housing Authority/Projects
• Cooperative Housing Societies

Key Considerations

Tax Offset: The advance tax is adjustable against your final tax liability. Section 37 (capital gains) minimises your tax burden.

No Duplicate Payments: If you opt for a payment schedule that includes an advance tax. With that, you do not need to pay during the property transfer.

The best part is to consult a tax advisor to ensure compliance with all requirements.

Capital Gain Tax

Capital Gains Tax (CGT) is a tax on the profit you make when selling assets, such as property or stocks. This profit is called a capital gain.

When Do You Pay Capital Gains Tax?

You pay CGT when you sell assets. But not on unsold assets or investments, no matter how long you’ve held them. Or how much their value has increased.

Note: Commercial properties, like shopping malls, pay different tax rates than residential properties.

When you sell a property, you must pay Capital gains tax on the profit made.

Here’s how it works:

Filers: Pay 15% CGT on the net gain from selling a property after July 1, 2024.

Non-Filers: Pay between 15% to 45% CGT, depending on the property’s value, as determined by the FBR.

This rate applies to properties acquired on or after July 1, 2024. Properties acquired on or before June 30, 2024, fall in previous tax rates as per the period held.

Before, CGT rates varied based on the property’s holding period (1-6 years). And type (plot, constructed property, or flat).

However, the CGT rate remains the same as that of the revised Taxes on Property 2024.

Let’s say you’re a Filer who bought a house in Lahore for PKR 5 million in 2020 and sold it for PKR 7 million in 2024. Your net gain would be PKR 2 million. You’d pay 15% CGT on this amount, which is PKR 300,000.

Stamp Duty

The Stamp Duty is a fee/tax levied by the government of Pakistan on a property transfer. You must pay it in full and on time. A stamp-paid document is a legal document. A buyer pays the applicable stamp duty.

The stamp duty is a provincial tax collected on various transactions, including property registrations, property transfers, share transfers, power of attorney documents, and more.

Here are some examples of transactions that require payment of stamp duty:

• Property purchases or sales (e.g., buying or selling a house, apartment, or land)
• Property transfers (e.g., gifting a property to a family member)
• Share transfers (e.g., buying or selling company shares)
• Power of attorney documents (e.g., authorising someone to manage your property)
• Lease agreements (e.g., renting a property for an extended period)
• Mortgage documents (e.g., securing a loan against a property)
• Deeds of trust (e.g., transferring ownership of a property to a trustee)
• Business asset transfers (e.g., selling or buying business equipment, vehicles, etc.)

Federal Excise Duty

Federal Excise Duty (FED) is a tax you pay when you book, allot, or transfer property.

• For Commercial Property, the FED is 5%.
• For Residential Property: FED is also 5%.

Note: The 5% FED for residential property applies to the first owner. When you book a residential plot and pay the down payment, you are to pay 5% FED to the GOP.

Pay Your Property Tax in Pakistan with Ease!

Are you a property owner in Pakistan, wondering how to pay your property tax?

Look no further! The Federal Board of Revenue (FBR) has made paying taxes online or in person convenient.

Generate PSID

Visit the FBR website to generate a Payment Slip ID (PSID) for your property tax liability. This will give you an accurate estimate of your tax dues.

Pay Online or Offline

Choose from various payment options:

Online Banking: You can pay online using your PSID through bank applications like Internet banking or mobile banking apps.

Offline: Deposit in Bank: Deposit the PSID amount in a bank.

Take Advantage of Convenience

Pay your property tax from the comfort of your own home or office. Avoid queues and save time with FBR’s online payment options.

Stay Compliant, Avoid Penalties

Make your annual property tax payment on time to avoid penalties.

Impact of Property Taxes 2025 on Private Housing Projects and Societies

The 2024-2025 budget attempts to revolutionise the real estate market. But what does this mean for housing societies? Let’s dive in and explore the effects.

A Blessing in Disguise?

On the bright side, property taxes are calculated based on DC rates lower than the fair market value.

This means buyers and sellers can have relief, as tax percentages are lower to pay. Yet, you may have noticed the DC rates list no residential property worth over 50 million. It is even in prestigious areas like Bahria Town or DHA.

The Dark Side: Concerns for the Real Estate Market

Despite the positives, some concerns hurt the market:

Less Demand: Increased withholding taxes may deter buyers. Particularly, late-filers and non-filers who are not interested in investing in real estate.

Property Price Drop: New taxes may cause sellers to hesitate to invest, leading to a downward trend in property prices.

What is Property Registration Tax in Pakistan?

To register a property in Pakistan, owners must pay 1% Stamp duty. You pay taxes in addition to taxes paid in the FBR based on the property’s value and purchase time.

In Punjab, a 1% stamp duty applies to the Registry as a provincial tax.

To complete the registration process, the following taxes are required:

• 1% Stamp Duty (provincial tax for Punjab)
• FBR Challan Property Tax (Already Paid)

Who is a Taxpayer?

A taxpayer is an individual or organisation that pays taxes to a government department.

Conclusion

Taxes generate revenue. Real estate reflects the impact of recent taxes – both positive and negative. But pay your property taxes on time to avoid extra charges and ensure a stable financial future.