Taxes on property transfer in Punjab
A property transfer in Punjab involves two kinds of charges. Federal taxes, collected for FBR, are advance income taxes on the buyer and the seller. Provincial and local charges, such as stamp duty and registration fees, are collected by the Punjab government and local bodies.
| Charge | Who pays | Level | 2026-27 rate |
|---|---|---|---|
| Advance tax, Section 236K | Buyer | Federal (FBR) | Filer 1.25%; non-filer 10.5% – 18.5% |
| Advance tax, Section 236C | Seller | Federal (FBR) | Filer 2.75%; non-filer 11.5% |
| Stamp duty | Buyer | Punjab | 1% (Stamp Ordinance 2026, as reported) |
| Registration, mutation, TMA, society fees | Usually buyer | Provincial / local | Varies by area |
Section 236K: buyer's advance tax
The buyer pays advance tax on the fair market value of the property. Under the Finance Act, 2026, effective 1 July 2026, filers on the Active Taxpayers List pay one flat rate, while non-filers pay much higher rates that rise with value.
| Property value | Filer (ATL) | Non-filer |
|---|---|---|
| Up to Rs 50 million | 1.25% | 10.5% |
| Rs 50 – 100 million | 1.25% | 14.5% |
| Above Rs 100 million | 1.25% | 18.5% |
Section 236C: seller's advance tax
The seller pays advance tax on the gross amount received. Filer rates were simplified into a single rate from 1 July 2026, replacing the earlier value bands.
| Seller status | Rate |
|---|---|
| Filer (ATL) | 2.75% |
| Non-filer | 11.5% |
Reported summaries also say the separate higher rate for late filers was removed, so a person who files late and appears on the ATL pays the filer rate, although a surcharge for late inclusion in the ATL applies. Check your status on FBR's Active Taxpayers List before the deal, and see the Federal Board of Revenue website for the official rate schedules.
Worked example
A 10 marla house in Lahore is sold for Rs 2.5 crore (Rs 25,000,000), and that is also its applicable value. Both buyer and seller are filers.
| Buyer: 236K at 1.25% | Rs 312,500 |
| Buyer: stamp duty at 1% | Rs 250,000 |
| Buyer: service charge at 0.1% | Rs 25,000 |
| Seller: 236C at 2.75% | Rs 687,500 |
| Total | Rs 1,275,000 (before registration and society fees) |
If the same buyer were a non-filer, 236K alone would be 10.5%, or Rs 2,625,000, more than eight times the filer amount.
Not sure how big the plot really is? Our marla to square feet calculator converts marla and kanal using the 225, 250 or 272.25 sq ft marla, so you can compare prices per square foot.
Which value is the tax charged on?
Taxes are not always charged on the price you agree. FBR publishes valuation tables for urban areas, and district administrations set DC rates. In general, tax is charged on the higher of the declared price and the applicable official value. Ask the registrar's office or your society which value applies to your property before you calculate.
Practical tips
- Become a filer before the deal. The difference between filer and non-filer rates is often far more than the cost of filing a return.
- Agree in writing who pays what. Buyer and seller taxes are legally separate, but deals sometimes shift costs. Put it in the agreement.
- Keep the CPRs. The tax payment receipts are needed later to claim the advance tax in your return.
- Add society charges. DHA, Bahria and other societies charge their own transfer fees, which are often significant.
Frequently asked questions
What is the 236K tax rate for filers in 2026-27?
1.25% of the property's value, as a single rate for all values under the Finance Act, 2026.
What is the 236C rate for a seller in 2026-27?
2.75% for filers on the Active Taxpayers List and 11.5% for non-filers.
What is stamp duty on property in Punjab?
Reports on the Punjab Stamp Ordinance 2026 put stamp duty at 1% plus a 0.1% service charge for a 12-month period. Confirm the current rate at your registry office.
Is advance tax adjustable?
Advance tax paid under 236K and 236C is generally adjustable against your final tax liability when you file your return. Keep the payment receipts.
Does this calculator include capital gains tax?
No. Capital gains are worked out in your annual tax return based on purchase and sale price and holding period. This tool covers taxes and fees paid at the time of transfer.