Property Tax in Islamabad 2026-27: What Buyers and Sellers Pay
Table of Contents
Explore the topics covered in this article.
If you are buying or selling a plot, a house or a shop in Islamabad, the tax depends on one thing above all: whether
you are on FBR’s Active Taxpayers List. The Finance Act 2026 cut the filer rates and made them flat. The gap
between filers and non-filers is large.
Online sources disagree on the numbers, so this guide names where each figure comes from and when we checked it.
It is not tax advice. Check the latest FBR rate card before you pay.
Property tax in Islamabad 2026-27: what changed
The Finance Act 2026 replaced value-based slabs with flat rates for filers. KPMG’s brief says amendments take effect
from 1 July 2026 unless stated otherwise. For 2025-26, the sources we read show a seller paying 4.5% to 5.5% under
section 236C and a buyer paying 1.5% to 2.5% under section 236K, depending on the value.
| Item | 2025-26, filers | 2026-27, filers |
|---|---|---|
| Section 236C, seller | 4.5% to 5.5% by value | 2.75% flat |
| Section 236K, buyer | 1.5% to 2.5% by value | 1.25% flat |
| Late-filer rates | Higher than filer rates | Removed, so late filers pay the filer rate |
| Section 7E, tax on deemed rental income | Charged until omitted | Omitted |
Beware of one trap. Business Recorder’s budget coverage gave the buyer rate as 1.5%, while KPMG’s brief of the final
Act says 1.25%. We use the Act’s figure. A PhotoNews report of an FBR example agrees: Rs 625,000 on a Rs 50
million purchase for a filer, which is 1.25%.
Tax on buying a property in Islamabad
Section 236K of the Income Tax Ordinance, 2001 is an advance tax on the purchase of immovable property. The Act
sets the filer rate at 1.25% irrespective of the property’s fair market value. Non-filers pay more, and their rate rises with
value.
| Property value | Filer | Non-filer |
|---|---|---|
| Up to Rs 50 million | 1.25% | 10.5% |
| Rs 50 million to Rs 100 million | 1.25% | 14.5% |
| Above Rs 100 million | 1.25% | 18.5% |
The non-filer rates come from Filing.pk’s 2026-27 rate card. They match the 2025-26 non-filer slabs that a pre-budget
table showed as not proposed to change, and the FBR example above (Rs 5.25 million on Rs 50 million). KPMG’s brief
does not state non-filer rates, so confirm them on FBR’s own rate card.
Tax on selling a property in Islamabad (section 236C)
Section 236C is an advance tax on the sale or transfer of immovable property. The Act sets the filer rate at 2.75%
irrespective of the amount of consideration. The rate card shows 11.5% for non-filers, at any value.
Capital gains are a separate matter. Section 37(1A) taxes the gain on the disposal of immovable property, and the rate
depends on when you bought and how long you held. KPMG’s brief says a disposal within one year carries 15%, and
that property bought on or before 30 June 2024 falls to 0% after six years. Its table is hard to read in places, so check the year-by-year rates in the statute.
A worked example: a Rs 20 million plot
Assume a plot priced at Rs 20 million, with the same value used as the tax base. This is a simplified example. The
base for your own deal may differ, and the real figure comes from the registrar or your tax adviser.
| Who pays | Filer | Non-filer |
|---|---|---|
| Buyer, section 236K | Rs 250,000 (1.25%) | Rs 2,100,000 (10.5%) |
| Seller, section 236C | Rs 550,000 (2.75%) | Rs 2,300,000 (11.5%) |
At the lowest slab, a non-filer buyer pays about eight times the filer rate (10.5% against 1.25%). A non-filer seller pays
about four times (11.5% against 2.75%). That gap is why the next check matters.
Send Us the Society Name and Block
Not sure how to read the CDA entry? Send us the name, phase and block. We read the entry, compare it with the seller's papers and tell you what matches and what does not.
Are you a filer? How to check
In this guide a filer means a person on FBR’s Active Taxpayers List (ATL). Check your own status and the other party’s
before you agree a price. KPMG’s brief says the separate late-filer rates were removed for these sections, so late filers
pay the filer rate. Non-filers do not.
Agree in writing, before you sign, who bears each tax and which value the figures use. On the Rs 20 million example,
the gap between filer and non-filer is Rs 1.85 million for the buyer and Rs 1.75 million for the seller.
How FBR valuation rates fit in
FBR publishes valuation rates for immovable property by location. In December 2025, ProPakistani reported that FBR
issued S.R.O. 2392(I)/2025 with new Islamabad rates covering 68 locations. The report said the building (the
superstructure) is now valued separately from the land, at Rs 4,000 per square foot if five years old or less and Rs
3,000 if older.
On 9 October 2026, FBR’s valuation page listed the Islamabad table with S.R.O. 644(I)/2026, amended in August
2026, as the latest. We do not print sector rates here because they change by notification, and the rate for your plot
depends on its sector, block, and use. See how this plays out on our sector pages, such as G-11 and I-15.
Stamp duty, registration fee and CDA transfer
Stamp duty and the registration fee are charged when the deed is registered, under laws such as the Stamp Act, 1899
and the Registration Act, 1908. Online guides quote different percentages, and the ones we read cite no official
schedule, so we do not print a figure. Ask the ICT sub-registrar for the current written schedule before you budget.
• The current stamp duty rate for your type of deed.
• The registration fee and how it is calculated.
• Any extra charge for registering late, and the deadline.
For plots allotted by CDA, the transfer goes through CDA. CDA’s Estate Wing handles the allotment and transfer of
residential plots and the ownership records. Ask it which documents and fees apply to your plot.
Section 7E and the end of deemed rental income tax
Section 7E taxed deemed rental income from capital assets. KPMG’s brief says it was omitted, after the Federal
Constitutional Court declared it ultra vires on 6 May 2026. The brief also notes that no mechanism for automatic
refunds of tax already paid had been set out.
Checklist before you pay
Property tax in Islamabad 2026-27 is easier to handle if you check these six things before any money moves.
1. Confirm that both the buyer and the seller are on the Active Taxpayers List.
2. Get the FBR valuation for the exact sector, block and property type.
3. Ask the ICT sub-registrar for the current stamp duty and registration schedule, in writing.
4. For a CDA plot, ask CDA’s Estate Wing for the transfer documents and fees.
5. Verify the property and the seller first. See how to check a housing society and our property verification service.
6. Get every tax figure in writing and keep all receipts.
Check a Society Before You Pay
Dua Estate & Marketing works from G-11 Markaz, Islamabad. Send us the society name and the plot details and we will check the CDA or RDA entry against your papers.
Frequently asked questions
What is section 236K?
An advance tax on the purchase of immovable property. For filers it is 1.25% from 1 July 2026, according to KPMG's brief of the Finance Act 2026. Non-filers pay a higher, value-based rate.
What is section 236C?
An advance tax on the sale or transfer of immovable property. For filers it is 2.75% from 1 July 2026, at any value. A published rate card shows 11.5% for non-filers.
Did the late-filer rates change?
KPMG's brief says the higher late-filer rates under these sections were removed. Late filers now pay the same rate as filers who file on time.
Is section 7E still charged?
No. It was omitted, and the Federal Constitutional Court declared it ultra vires on 6 May 2026, according to KPMG. Check with a tax adviser about refunds of tax already paid.
Do I pay tax on the FBR value or on the price?
The Act uses fair market value for section 236K and the amount of consideration for section 236C. FBR sets valuation rates for Islamabad. Ask the registrar or a tax adviser which value applies to your deal.
Is the tax the same for plots and houses?
The sections cover immovable property in general. For houses, FBR's table also values the building separately, so the base can differ. Check the current table for your sector.
Is this tax advice?
No. It is a plain-words summary of property tax in Islamabad 2026-27 from published sources, last verified on 11 October 2026. Confirm figures with FBR or a tax adviser. See also our property verification guide for checks before you pay.