Property tax in Islamabad 2026-27: what buyers and sellers pay (236K and 236C)

The federal budget for 2026-27 cut the main taxes on buying and selling property for people on the Active Taxpayer List. For filers, the advance tax on a purchase is now a flat 1.25% and on a sale a flat 2.75%, whatever the property is worth. For non-filers the rates stayed high, so the gap between the two has never been wider.

This guide explains property tax in Islamabad for 2026-27: the federal withholding taxes under sections 236K and 236C, what changed in the budget, worked examples, the local charges you pay at registration, and the annual property tax on owned property.

Property tax in Islamabad at a glance

When a property changes hands in Islamabad, the main costs are:

• Section 236K advance tax, paid by the buyer.
• Section 236C advance tax, paid by the seller.
• Stamp duty and capital value tax, collected by the Islamabad Capital Territory administration at registration.
• Transfer fees charged by the CDA or the housing society.
• Capital gains tax, settled through the seller’s income tax return.

Once you own the property, there is also an annual property tax in the CDA sectors.

What changed in the 2026-27 budget

The Finance Act 2026 simplified the withholding taxes for filers. In 2025-26, filers paid between 1.5% and 2.5% as buyers and between 4.5% and 5.5% as sellers, depending on the value of the property. From July 2026 both became single flat rates: 1.25% for buyers and 2.75% for sellers.

The budget also abolished section 7E, the deemed income tax that applied to people owning property valued above Rs25 million. Rates for non-filers were left largely unchanged.

These rates apply nationally, including Islamabad. What is specific to Islamabad is the value they are calculated on and the local charges described below.

Section 236K: the buyer’s advance tax

The buyer pays 236K advance tax when the property is registered or transferred. For 2026-27 the rates are:

• Filer (on the Active Taxpayer List): 1.25%, for any property value.
• Non-filer: 10.5% up to Rs50 million, 14.5% from Rs50 million to Rs100 million, and 18.5% above Rs100 million.

The tax is calculated on the property’s value in the FBR valuation tables for the area, or on the declared price if that is higher. For a filer it is an advance tax that can be adjusted against the final income tax liability when filing a return.

Section 236C: the seller’s advance tax

The seller pays 236C advance tax at the time of sale or transfer:

• Filer: 2.75%, for any property value.
• Non-filer: 11.5%, for any property value.

For filers this is also generally adjustable against the tax due on any capital gain when they file their return. The seller should keep the payment receipt for that purpose.

Worked examples

The examples use FBR values and show only the federal withholding taxes.

A plot valued at Rs20 million:

• Buyer, filer: 1.25% = Rs250,000.
• Buyer, non-filer: 10.5% = Rs2,100,000.
• Seller, filer: 2.75% = Rs550,000.
• Seller, non-filer: 11.5% = Rs2,300,000.

A house valued at Rs60 million:

• Buyer, filer: 1.25% = Rs750,000.
• Buyer, non-filer: 14.5% = Rs8,700,000.
• Seller, filer: 2.75% = Rs1,650,000.
• Seller, non-filer: 11.5% = Rs6,900,000.

On the Rs60 million house, a non-filer buyer pays almost Rs8 million more in 236K tax than a filer. For most people, filing an income tax return before a property deal is the single biggest saving available.

How to become a filer before you buy or sell

You become a filer by submitting your income tax return to the FBR, after which your name appears on the Active Taxpayer List. Check your status on the FBR website before the transfer date, not on the day itself. If you are not on the list when the transfer is registered, the non-filer rate is applied.

Non-resident Pakistanis may be able to pay filer rates under specific conditions. Confirm the current rules with the FBR or a tax adviser before signing.

Local charges at registration in Islamabad

On top of the federal taxes, Islamabad charges are collected when a property transfer is registered:

• Stamp duty and capital value tax, collected by the Islamabad Capital Territory administration through the sub-registrar’s office.
• CDA transfer fees for property in CDA sectors, where transfers are handled through the CDA’s one-window process.
• Society transfer fees in private societies and DHA, which each set their own charges.

These rates and fees are revised from time to time and differ between the CDA, DHA and private societies. Ask the sub-registrar’s office and the society for the current schedule in writing before you agree a price, and decide in the sale agreement who pays which charge.

Capital gains tax when you sell

If you sell for more than you paid, the gain may be taxed when you file your return. The rate depends on your filer status and on when you acquired the property, because the rules have changed several times in recent budgets. The 236C advance tax you paid is generally credited against it. If you are selling a property with a large gain, ask a tax adviser to work out the figure before you agree a price.

Annual property tax on owned property

Owning property in the CDA sectors brings an annual property tax, separate from the taxes on buying and selling. Bills can be checked and duplicates downloaded through the CDA’s e-services. Private societies and DHA charge their own maintenance fees, which work like a service charge rather than a tax.

Buying inside DHA or a private society

In DHA and private housing societies, plots and houses are often transferred through the society’s own records rather than at the sub-registrar’s office. The federal withholding taxes still apply. The society, as the body recording the transfer, collects 236K from the buyer and 236C from the seller before it completes the transfer, along with its own transfer fee.

This matters for files and plots bought on instalments. When a file or an allotted plot changes hands, the transfer is taxed even if the property is not yet developed. Ask the society for its full transfer cost, including taxes, before you agree a price with the seller.

Total cost checklist for first-time buyers

The price of the property is only the starting point. Budget for:

1. The agreed price.
2. 236K advance tax: 1.25% for a filer.
3. Stamp duty and capital value tax at registration.
4. The CDA or society transfer fee.
5. A lawyer’s fee for checking documents and drafting the sale agreement.
6. The dealer’s commission, which is negotiable and should be agreed in writing.
7. Fees for a no-demand certificate and other society paperwork.
8. For a plot: construction approval fees, utility connections and the cost of building.

Adding these up before you make an offer avoids an unpleasant surprise on transfer day.

Common mistakes with property tax in Islamabad

• Filing too late. Becoming a filer after the transfer does not change the rate already charged.
• Under-declaring the price. The tax is calculated on at least the FBR value, and an artificially low declared price can cause problems with the FBR and with the buyer’s own paper trail later.
• Losing the receipts. Without proof of 236K and 236C payments, you cannot claim them as credit in your return.
• Not agreeing who pays what. Disputes over who covers stamp duty or the transfer fee are common. Settle them in the sale agreement.

Tips to keep costs down

1. File your income tax return before the transaction so you pay filer rates.
2. Ask for the FBR value of the property before you negotiate, so you know the tax base.
3. Put the split of taxes and fees between buyer and seller in writing.
4. Keep receipts for 236K and 236C so you can claim credit when filing.
5. Get the local stamp duty, capital value tax and transfer fee figures in writing from the relevant office.

If you have not chosen where to buy yet, our guides to checking CDA approved housing societies and comparing Bahria Enclave, Park View City and DHA cover the legal side.

Related guides: Verify property ownership online in Pakistan

Frequently asked questions

What is the 236K rate in 2026-27?

1.25% for filers on any property value. For non-filers it is 10.5%, 14.5% or 18.5% depending on the value.

What is the 236C rate in 2026-27?

2.75% for filers and 11.5% for non-filers, whatever the property is worth.

Was section 7E abolished?

Yes. The 2026-27 budget removed the deemed income tax on property under section 7E.

Is property tax in Islamabad different from Lahore or Karachi?

The federal 236K and 236C rates are the same everywhere. Stamp duty, capital value tax, transfer fees and annual property tax are set locally, so they differ between Islamabad and the provinces.