Capital Gains Tax on Property Calculator
Property bought since 1 July 2024: filers pay a flat 15% of the gain. Property bought before then: the rate falls the longer you held it, down to 0%.
Income Tax Ordinance section 37(1A)2026-27
01 Rates
Capital gains tax rates on property
Which table applies depends on when you bought the property.
Bought on or after 1 July 2024: 15% for filers at any holding period; non-filers pay the normal income tax slab rates on the gain, at least 15%.
| Held for | Open plot | Constructed | Flat |
|---|---|---|---|
| Up to 1 year | 15% | 15% | 15% |
| 1–2 years | 12.5% | 10% | 7.5% |
| 2–3 years | 10% | 7.5% | 0% |
| 3–4 years | 7.5% | 5% | 0% |
| 4–5 years | 5% | 0% | 0% |
| 5–6 years | 2.5% | 0% | 0% |
| More than 6 years | 0% | 0% | 0% |
02 Answers
Questions about capital gains on property
Short answers about section 37(1A).
Calculate the taxWhat is the capital gains tax on property in 2026-27?
For property bought on or after 1 July 2024, filers pay a flat 15% of the gain, however long they held it. Non-filers pay normal income tax rates on the gain, at least 15%. For property bought on or before 30 June 2024, the rate falls with the holding period and depends on the type of property.
When is property free of capital gains tax?
Only property bought on or before 30 June 2024: flats after 2 years, houses and other constructed property after 4 years, and open plots after 6 years. Property bought since 1 July 2024 has no such exemption.
How is the gain worked out?
The sale price minus what the property cost you, including the purchase price and costs of buying and improving it. Keep receipts and transfer documents to prove the cost.
Is the 236C tax the same as capital gains tax?
No. 236C is advance tax collected on the sale price when the transfer is registered. Capital gains tax is on the profit, worked out in your return; the 236C tax is adjusted against it.
How do I pay capital gains tax on property?
Show the gain in your income tax return for the year of sale. The 236C advance tax and any other tax already paid are deducted, and you pay the balance with a payment slip (PSID).
Sources and last update
- Income Tax Ordinance 2001: section 37(1A); First Schedule Part I Division VIII (as substituted by the Finance Act 2024) and Division I (slab rates)
- Section 236C and First Schedule Part IV Division X (Finance Act 2026)
- Federal Board of Revenue (FBR)
Last reviewed: 7 November 2026. How we calculate
Results are estimates, not tax advice. For your exact tax, check your salary certificate or ask a tax professional.