Buying or selling property in Pakistan involves several government taxes and duties. In 2026, the government introduced significant tax reductions to support the real estate sector, making property transactions more affordable for both buyers and sellers.
Understanding these taxes before completing a transfer can help you estimate your total cost and avoid unexpected expenses. Keep in mind that the tax amounts shown below are indicative. The actual payable amount depends on the Federal Board of Revenue (FBR) valuation of the property, which varies from one housing society to another.
How Property Transfer Tax Works
During a property transfer, both the purchaser and the seller have separate tax obligations.
Taxes Paid by the Purchaser
A buyer is generally required to pay:
• Advance Income Tax
• Stamp Duty
• Corporation Fee
The amount depends on whether the buyer is an Active Taxpayer (Filer) or a Non Filer.
Taxes Paid by the Seller
The seller pays Advance Income Tax on the transfer of the property. Active Taxpayers pay a lower rate than Non Filers.
5 Marla Transfer Tax 2026
Purchaser (Buyer) Park View City Lahore
with (FBR Value 11,70,760)
| Tax / Fee | Active Taxpayer (Filer) | Non Filer |
|---|---|---|
| Advance Income Tax (under section 236-k) @ 1.25 | Rs. 73,172 | Rs. 140,075 |
| Stamp Duty (1%) | Rs. 58,538 | Rs. 58,538 |
| Corporation Fee (1%) | Rs. 58,538 | Rs. 58,538 |
| Total for Plot | Rs. 190,248 | Rs. 257,150 |
| Advance Income Tax (House) with cover area 2080 Sq.ft | Rs. 124,638 | Rs. 249,275 |
| Stamp Duty (1%) | Rs. 102,218 | Rs. 102,218 |
| Corporation Fee (1%) | Rs. 102,218 | Rs. 102,218 |
| Total for House | Rs. 329,073 | Rs. 453,710 |
Seller
| Property Type | Active Taxpayer (Filer) | Non Filer |
|---|---|---|
| Plot (under section 236-C @2.75) | Rs. 154,083 | Rs. 308,165 |
| House | Rs. 274,203 | Rs. 548,405 |
10 Marla Transfer Tax 2026
Purchaser (Buyer)
| Tax / Fee | Active Taxpayer (Filer) | Non Filer |
|---|---|---|
| Advance Income Tax (236-K @ 1.25) | Rs. 146,345 | Rs. 280,150 |
| Stamp Duty (1%) | Rs. 117,075 | Rs. 117,075 |
| Corporation Fee (1%) | Rs. 117,075 | Rs. 117,075 |
| Total for Plot | Rs. 380,495 | Rs. 514,300 |
| Advance Income Tax (House) with cover area (3050) | Rs. 225,388 | Rs. 450,775 |
| Stamp Duty (1%) | Rs. 185,325 | Rs. 185,325 |
| Corporation Fee (1%) | Rs. 185,325 | Rs. 185,325 |
| Total for House | Rs. 596,038 | Rs. 821,425 |
Seller
| Property Type | Active Taxpayer (Filer) | Non Filer |
|---|---|---|
| Plot (236-C @ 2.75) | Rs. 321,959 | Rs. 616,330 |
| House | Rs. 495,853 | Rs. 991,705 |
Tax Amounts May Vary by Housing Society
The figures above are sample calculations based on a specific FBR valuation.
The actual transfer tax can be higher or lower because FBR assigns different valuation rates to different cities, housing societies, commercial areas, and residential sectors. A 5 Marla plot in one society may have a completely different taxable value than a 5 Marla plot in another society.
Before finalizing any property transaction, buyers and sellers should confirm the latest FBR valuation and applicable taxes for their specific property.
Impact of the 2026 Tax Reduction on Real Estate
The 2026 tax reforms have provided relief to the property market by reducing transaction costs. The key benefits include:
Lower Cost of Buying Property
Reduced advance tax allows buyers to purchase plots and houses with lower upfront expenses. This improves affordability, especially for first time investors.
Increased Market Activity
Lower taxes encourage more buying and selling, leading to higher transaction volumes across residential and commercial projects.
Better Investment Opportunities
Reduced transfer costs improve the overall return on investment by lowering acquisition expenses.
You may also like to read
Park View City Lahore: Everything You Need to Know
Greater Benefit for Active Taxpayers
Active Taxpayers continue to pay significantly less tax than Non Filers. Maintaining Active Taxpayer status can save hundreds of thousands of rupees on larger property transactions.
Final Thoughts
The 2026 transfer tax revisions have made property transactions more attractive for both investors and end users. However, transfer taxes are calculated using the FBR value of the property, not simply the plot size. Since FBR valuations differ from one housing society to another, the final payable tax may vary.
Before purchasing or selling any property, verify the latest FBR valuation, applicable transfer taxes, and any additional society transfer charges. Proper planning ensures a smoother transaction and helps you accurately estimate the total cost of ownership.
