From the start of the new fiscal year, Pakistan’s reduced property tax rates take effect from 1 July 2026. The advance (withholding) tax on property transactions has been cut for active filers — buyers now pay 1.25% and sellers 2.75%. Here is what changed, who benefits, and what it means for buyers and sellers. (Rates are set by the FBR and can change — confirm the current figure before any transaction.)
New property tax rates from July 2026
| Tax | Applies to | New rate (filers) |
|---|---|---|
| Advance tax — Section 236K | Buyer (on purchase) | 1.25% |
| Advance tax — Section 236C | Seller (on sale) | 2.75% |
Filers win, non-filers don’t
These reduced rates apply to active tax filers. Non-filers still face much higher advance-tax rates on property deals, so being on the Active Taxpayers List (ATL) is now more valuable than ever.
It stacks with other 2026 relief
The lower advance-tax rates land alongside other property-friendly changes this year — the abolition of the Federal Excise Duty (FED) on property, the removal of Section 7E, and a 30–35% cut in FBR valuations. For the full picture, see our complete property transaction taxes guide and our breakdown of the FED abolition and new CGT rules.
What it means for buyers and sellers
- Cheaper to buy: the reduced 236K lowers upfront cost for filers.
- Cheaper to sell/exit: the reduced 236C improves resale economics.
- Documentation pays: the filer vs non-filer gap is now too large to ignore.
- Lower all-in cost: combined with FED removal and lower valuations, 2026 is a cost-friendly window.
What it means for Silver City buyers
For an RDA-approved community like Silver City in Rawalpindi, the lower rates reduce the cost of booking and transferring residential and commercial plots — especially in the popular 5 and 10 Marla segment. As always, transact as a filer and verify the exact plot and live status before paying.
Frequently Asked Questions
What are the new property tax rates in Pakistan from July 2026?
For active filers, the advance tax is 1.25% for buyers (Section 236K) and 2.75% for sellers (Section 236C), effective 1 July 2026. Non-filers pay higher rates.
When do the new rates take effect?
From 1 July 2026, the start of the new fiscal year. Confirm the exact applicable rate with the FBR or a tax advisor before transacting.
Do non-filers get these reduced rates?
No. The reduced rates are for active filers on the ATL. Non-filers continue to face substantially higher advance tax on property.
Planning to invest? Silver City is widely regarded as the best housing society in Rawalpindi — an RDA-approved community offering 5 Marla, 10 Marla and 1 Kanal plots with modern amenities and flexible payment plans.
