How is section 236K tax worked out?
The calculator finds the band the fair market value falls in and applies that band's rate to the whole value. It is not a slab system: a value just above a band limit pays the higher rate on every rupee.
Rates by tax year
| Fair market value | On the ATL, 2027 | On the ATL, 2026 | Not on the ATL |
|---|---|---|---|
| Up to Rs 50 million | 1.25% | 1.5% | 10.5% |
| Above Rs 50 million, up to Rs 100 million | 1.25% | 2% | 14.5% |
| Above Rs 100 million | 1.25% | 2.5% | 18.5% |
The tax year 2027 rate is Division XVIII of Part IV as substituted by the Finance Act, 2026. The tax year 2026 bands are the table it replaced. The rates for people not on the active taxpayers' list are in the second proviso to rule 1 of the Tenth Schedule, as amended by the Finance Act, 2025, and are the same in both years.
What about people who filed late in tax year 2026?
Rule 1A of the Tenth Schedule, inserted by the Finance Act, 2024, set higher section 236K rates for people on the active taxpayers' list who had not filed their return by the due date: 4.5% up to rs 50 million, 5.5% above rs 50 million, up to rs 100 million, 6.5% above rs 100 million. Its proviso excluded a person who had filed by the due date for all of the last three preceding tax years. The Finance Act, 2026 omitted rule 1A, so it does not apply in tax year 2027. The calculator does not model it.
Where the rates come from
Every rate is read from the Income Tax Ordinance, 2001 as consolidated by FBR. The rates on this page were last checked against the official text on 2026-09-26.
- Income Tax Ordinance, 2001, section 236K, advance tax on purchase or transfer of immovable property (as amended to 2026-06-30) official file
- Income Tax Ordinance, 2001, First Schedule, Part IV, Division XVIII, as substituted by the Finance Act, 2026 (as amended to 2026-06-30) official file
- Income Tax Ordinance, 2001, Tenth Schedule, rule 1, second proviso, rates for people not on the ATL (as amended to 2026-06-30) official file
- Income Tax Ordinance, 2001, Tenth Schedule, rule 1A as omitted by the Finance Act, 2026 (quoted in the footnote) (as amended to 2026-06-30) official file
- Income Tax Ordinance, 2001, section 181A, active taxpayers' list (as amended to 2026-06-30) official file
- Income Tax Ordinance, 2001, edition amended to 31.07.2025, tax year 2026 table (as amended to 2025-07-31) official file
Common questions
What is the advance tax on buying property in tax year 2027?
For a buyer on the active taxpayers' list, 1.25% of the fair market value, under Division XVIII of Part IV of the First Schedule as substituted by the Finance Act, 2026. The rate is the same at every value.
What does a buyer not on the active taxpayers' list pay?
The Tenth Schedule sets its own table for section 236K: 10.5% up to rs 50 million, 14.5% above rs 50 million, up to rs 100 million, 18.5% above rs 100 million of fair market value. The rate of the band applies to the whole value.
Can the buyer adjust section 236K tax?
Yes. Section 236K(2) says the advance tax collected is adjustable. Its proviso makes the tax a final discharge of tax liability for a non-resident individual holding a POC, NICOP or CNIC who bought the property through a Foreign Currency Value Account or an NRP Rupee Value Account.
Who collects the tax, and when?
The person registering, recording or attesting the transfer collects it from the purchaser at that time. This includes a local authority, housing authority, housing society, co-operative society, public and private real estate projects, joint ventures, private commercial concerns and the registrar of properties. Where a property is paid for in instalments before transfer, the tax is collected with the instalments under section 236K(3).
Is any purchase outside section 236K?
Section 236K(4) says the section does not apply to a scheme introduced by the Federal Government, a Provincial Government or an authority under a Federal or Provincial law for expatriate Pakistanis, where payment is made in foreign exchange remitted from outside Pakistan through normal banking channels.