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

Understanding property tax in Pakistan can save you lakhs of rupees. Whether you’re buying, selling, or investing, knowing how FBR tax and DC rates work helps you make smarter decisions.

The best part? Everything here is updated for 2025.

With over 10 years of experience as a Transfer Officer, I’ll explain each tax concept in simple, clear language so you can handle property taxes with confidence.

So, let’s make it easy to understand — once and for all.

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.

In this post, you will explore:

• What is FBR Property Tax
• How Much Tax on Property in Pakistan?
• Types of Property Taxes Explained
• Latest FBR Property Tax Rates (2025)
• Advance Tax on Property
• Advance Tax for Buyer (Section 236K)
• Advance Tax for Seller (Section 236C)
• Who Collects Property Tax in Pakistan?
• Capital Gain Tax (CGT) on Property
• Stamp Duty & Registration Charges
• Federal Excise Duty (FED) on Property
• How to Pay Property Tax Online in Pakistan
• Filer vs Non-Filer Property Tax Rates

What Is FBR Property Tax?

The FBR property tax is the federal system that controls real estate taxation in Pakistan. It defines filer and non-filer rules, sets valuation tables, and works with provincial DC rates to decide how much tax applies when property is transferred.

The Federal Board of Revenue (FBR) manages this process. It issues updated valuation tables and directs registration offices to collect withholding tax at the time of transfer. At the same time, provinces handle DC rates, stamp duty, and registration fees that apply locally.

Here’s the simple truth: FBR values and DC rates together determine your total property tax. Filers—those listed on the Active Taxpayers List (ATL)—pay less. Non-filers and late filers pay higher taxes and may face penalties.

Pro Tip: Before signing any sale or transfer deed, always compare the FBR valuation table with your provincial DC rate. A quick check can save you from paying thousands more than necessary.

Example:

• FBR = Federal valuation rulebook
• DC = Local district property value
• Final Tax = (FBR% × DC Value) adjusted for filer status

These rates change every year, so keeping up with the latest FBR updates is essential.

In the next section, you’ll learn how the FBR divides taxpayers into categories — and why filer status can save you thousands in property taxes.

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.

Taxpayer Categories

To make property taxation fair, the FBR divides taxpayers into three categories:

Filer – A filer submits income tax returns on time and appears on the Active Taxpayers List (ATL). Filers enjoy lower withholding and property tax rates.

Late Filer – A late filer misses the September 30 deadline or delays payment. They may face penalties and slightly higher rates.

Non-Filer – A non-filer does not submit tax returns and isn’t listed on the ATL. As a result, they pay much higher taxes than filers.

Alongside federal taxes, provincial and local governments also charge a property tax levy, calculated as a percentage of the property’s DC (District Collector) value.

So, whether you buy, sell, or hold real estate, you pay both federal and provincial taxes. Understanding how the FBR property tax works helps you plan and make informed real estate decisions in Pakistan.

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Let’s now move to the next section —

How Much Tax on Property in Pakistan?

The tax you pay on property depends on three things: your filing status, property type, and the valuation rates set by FBR and your province.

The FBR issues valuation tables based on fair market value. Provinces set DC rates (District Collector values). Your tax is calculated on whichever is higher: the FBR value or the DC rate. So, you can’t declare a lower value to save tax.

Here’s a quick breakdown of the main property taxes:

• Advance Tax (Section 236K): Paid by the buyer at purchase.
• Advance Tax (Section 236C): Paid by the seller at the sale.
• Capital Gain Tax (CGT): Charged on the seller’s profit from resale.
• Stamp Duty & Registration Fee: Collected by the provinces at the time of transfer.

In short, both federal and provincial taxes combine to determine your total cost when buying or selling property in Pakistan.

In the next section, you’ll learn about the types of property taxes you might face — and how each one affects your total cost when buying or selling property in 2025.

Types of Property Taxes in Pakistan

When it comes to real estate in Pakistan, you don’t pay just one tax. Several taxes apply depending on whether you’re buying, selling, or holding property. Each one serves a different purpose — and understanding them helps you make smarter investment decisions.

Let’s break them down.

1. Property Transfer Tax

This is the main tax you pay when a property changes ownership.
It includes advance tax, stamp duty, and registration charges. The rate depends on the property’s valuation by FBR or the DC rate, whichever is higher.

In short, this tax covers the official paperwork that makes the property legally yours.

2. Capital Gain Tax (CGT)

When you sell a property at a profit, the Capital Gain Tax (CGT) applies.
The FBR charges this tax on the gain or profit made from the sale.

If you sell your property within a few years of purchase, you’ll pay CGT.
If you hold it longer, your tax rate drops — and sometimes you may even get an exemption.

Example:

• Sold within 1 year → higher CGT
• Sold after 4 years → little or no CGT

This rule encourages long-term property investment instead of quick flipping.

3. Advance Tax (Sections 236K & 236C)

The advance tax is collected at the time of sale or purchase:

• Section 236K: Paid by the buyer.
• Section 236C: Paid by the seller.

The tax is calculated on the FBR valuation table and depends on your filer status. Filers pay less; non-filers pay more.
It’s also adjustable — meaning it can be adjusted against your annual income tax later.

4. Stamp Duty and Registration Fee

These are provincial taxes.
The stamp duty is the tax on legal documents proving ownership, while the registration fee covers the government’s record-keeping cost.

Both are mandatory. The combined rate usually ranges between 3% to 5% of the property’s value, depending on the province.

5. Property Tax (Annual Holding Tax)

If you own a property, you may also pay an annual property tax to your local development authority or excise department.
This tax helps fund local services like roads, lighting, and sanitation.

Rates differ from city to city — for example, LDA in Lahore, CDA in Islamabad, or KDA in Karachi each have separate slabs based on location and property size.

6. Federal Excise Duty (FED)

For certain luxury or commercial properties, a Federal Excise Duty (FED) may apply.
This is an additional charge levied by the federal government, mostly on high-end or speculative property transactions.

It’s a smaller percentage, but it still adds to the overall cost, especially for developers and large investors.

Key Takeaway

Each type of tax serves a different purpose — some make your ownership legal, some discourage speculation, and others feed back into community services.

In the next section, you’ll learn how Advance Tax actually works — who pays it, how much, and how it’s calculated under the latest FBR property tax rules for 2025.

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:

Property value	Filer (ATL)	Late filer	Non-ATL (non-filer)
≤ Rs 50 million	1.5%	4.5%	10.5%
Rs 50–100 million	2.0%	5.5%	14.5%
> Rs 100 million	2.5%	6.5%	18.5%

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 on 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:

Property value	Filer (ATL)	Late filer	Non-ATL (non-filer)
≤ Rs 50 million	4.5%	7.5%	11.5%
Rs 50–100 million	5.0%	8.5%	11.5%
> Rs 100 million	5.5%	9.5%	11.5%

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.

A tax paid by an investor upon selling their asset, based on the amount by which the asset appreciated during the time it was held.

Investopedia

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.