2.75%
sale WHT for ATL sellers
Enacted · Finance Act 2026
Property — Budget 2025–26 vs 2026–27
Verified changes to property withholding tax, Section 7E, foreign-asset CVT and inherited-property cost basis in Pakistan.
Enacted 26 June 2026 · Effective 1 July 2026
Enacted 26 June 2026Effective 1 July 2026
- Reviewed against Finance Act 2026
At a glance
Property budget changes overview
1.25%
purchase WHT for ATL buyers
Omitted
Section 7E deemed-income tax
0%
CVT on qualifying foreign assets
What changed for property owners?
| Measure | FY 2025–26 | FY 2026–27 | Impact |
|---|---|---|---|
| 1. Section 7E deemed-income tax | In force; effectively 1% of fair market value where applicable | Section 7E omitted | Abolished |
| 2. Sale WHT — Section 236C, ATL | 4.5% / 5% / 5.5% by value band | 2.75% flat at all values | Lower |
| 3. Purchase WHT — Section 236K, ATL | 1.5% / 2% / 2.5% by value band | 1.25% flat at all values | Lower |
| 4. Sale WHT — Section 236C, non-ATL | 11.5% at all value bands | 5.5% flat | Lower |
| 5. Purchase WHT — Section 236K, non-ATL | 10.5% / 14.5% / 18.5% by value band | 2.5% flat | Lower |
| 6. Late-filer property category | Separate 236C and 236K rates applied | Tenth Schedule rule 1A omitted | Abolished |
| 7. CVT on foreign assets above PKR 100M | 1% of aggregate foreign-asset value | Foreign-asset CVT provision omitted | Abolished |
| 8. Inherited immovable-property cost | General inherited-asset cost rules applied | Specific Section 76(8A) fair-market-value rule | Clarified |
| 9. CGT for ATL property acquired on/after 1 July 2024 | 15% of capital gain | 15% of capital gain | No change |
1. Section 7E deemed-income tax
Abolished- FY 2025–26
- In force; effectively 1% of fair market value where applicable
- FY 2026–27
- Section 7E omitted
2. Sale WHT — Section 236C, ATL
Lower- FY 2025–26
- 4.5% / 5% / 5.5% by value band
- FY 2026–27
- 2.75% flat at all values
3. Purchase WHT — Section 236K, ATL
Lower- FY 2025–26
- 1.5% / 2% / 2.5% by value band
- FY 2026–27
- 1.25% flat at all values
4. Sale WHT — Section 236C, non-ATL
Lower- FY 2025–26
- 11.5% at all value bands
- FY 2026–27
- 5.5% flat
5. Purchase WHT — Section 236K, non-ATL
Lower- FY 2025–26
- 10.5% / 14.5% / 18.5% by value band
- FY 2026–27
- 2.5% flat
6. Late-filer property category
Abolished- FY 2025–26
- Separate 236C and 236K rates applied
- FY 2026–27
- Tenth Schedule rule 1A omitted
7. CVT on foreign assets above PKR 100M
Abolished- FY 2025–26
- 1% of aggregate foreign-asset value
- FY 2026–27
- Foreign-asset CVT provision omitted
8. Inherited immovable-property cost
Clarified- FY 2025–26
- General inherited-asset cost rules applied
- FY 2026–27
- Specific Section 76(8A) fair-market-value rule
9. CGT for ATL property acquired on/after 1 July 2024
No change- FY 2025–26
- 15% of capital gain
- FY 2026–27
- 15% of capital gain
The enacted 236C and 236K rates are flat for FY 2026–27. Non-ATL rates shown apply the Tenth Schedule’s 100% uplift; the old banded non-filer figures no longer apply.
Example: ATL transaction at PKR 80M
FY 2025–26
- Sale WHT
- PKR 4.0M
- Purchase WHT
- PKR 1.6M
PKR 5.6M
FY 2026–27
- Sale WHT
- PKR 2.2M
- Purchase WHT
- PKR 1.0M
PKR 3.2M
Combined reduction
PKR 2.4M
Illustrative combined transfer-stage tax: the seller pays Section 236C and the buyer separately pays Section 236K.
Work out the new rates on your own property
The rate changes above are the headline. These calculators apply them to a specific price, filer status and tax year.
Property purchase tax calculatorSection 236K advance tax paid by the buyer, at 1.25% for filers in 2026-27.Open calculatorProperty sale tax calculatorSection 236C advance tax deducted from the seller, at 2.75% for filers in 2026-27.Open calculatorProperty capital gains tax calculatorTax on the profit itself, with the Section 236C already collected set against it.Open calculator
Explore budget impact by sector
Compare the enacted FY 2026–27 changes across taxpayers and industries.
Freelancers & IT
- 0.25% PSEB rate extended to Tax Year 2029
- Export collection: 1.25%
- Foreign-card WHT: 0.5%
Business & super tax
- 0% for most persons up to PKR 500M
- 8% above PKR 500M
- Banks, E&P and fertiliser remain at 10%
Property
- Section 7E repealed
- Sale WHT: 2.75%
- Purchase WHT: 1.25%
Vehicles
- Imported EV FED: 0% / 30% / 40% by USD value
- Imported 2000cc+ vehicles: new special duty
- ICT ≤1000cc: PKR 20,000 lifetime
Solar
- 10% sales tax continues
- No new Finance Act 2026 increase
Defence
- PKR 3.00T defence services
- PKR 822B military pensions, separate
- PKR 925.8B physical assets
Quick tools
Calculate what the budget means for you
Move from the headline comparison to your own estimate with calculators matched to this page.
Frequently asked questions
Is Section 7E deemed-income tax abolished?
Yes. Finance Act 2026 omits Section 7E. In FY 2025–26 it was in force and worked out to effectively 1% of fair market value where it applied.
What is the property sale tax rate for filers in FY 2026–27?
Advance tax on sales under Section 236C is a flat 2.75% at all values for persons on the ATL. FY 2025–26 used banded rates of 4.5%, 5% and 5.5% depending on property value.
What is the property purchase tax rate for filers?
Advance tax on purchases under Section 236K is a flat 1.25% at all values for ATL buyers, replacing the banded 1.5%, 2% and 2.5% rates that applied in FY 2025–26.
What do non-filers pay on property transactions?
Non-ATL sellers pay a flat 5.5% under Section 236C, down from 11.5%, and non-ATL buyers pay a flat 2.5% under Section 236K, replacing banded rates of 10.5%, 14.5% and 18.5%. These figures apply the Tenth Schedule uplift.
How much less tax is due on a PKR 80M transaction?
On an ATL transaction at PKR 80 million, combined transfer-stage tax falls from PKR 5.6 million to PKR 3.2 million, a reduction of PKR 2.4 million. The seller pays Section 236C and the buyer separately pays Section 236K.
Did capital-gains tax on property change?
No. For ATL persons, capital-gains tax on property acquired on or after 1 July 2024 remains 15% of the gain. Transfer withholding and capital-gains tax are separate charges.
Does the late-filer property category still exist?
No. Rule 1A of the Tenth Schedule is omitted, so the separate late-filer rates for Sections 236C and 236K no longer apply. CVT on foreign assets above PKR 100 million was also removed.
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