Is there capital gains tax if I sell after 6 years?

Only if you bought the property before 1 July 2024: then open plots are exempt after 6 years, houses after 4 and flats after 2. Property bought from 1 July 2024 onward is taxed at 15% for filers no matter how long you hold it.

How is the holding period counted?

From the date of acquisition to the date of disposal. For allotted plots FBR generally counts from the allotment/possession letter; for purchased property from the registered transfer. Keep the documents: the rate can swing from 15% to 0%.

Is 236C the same as capital gains tax?

No. 236C is an advance tax collected at the time of transfer on the full sale price. CGT is calculated on the gain when you file your return. Filers deduct the 236C already paid from their CGT; non-filers effectively lose it unless they file.

What counts as cost of acquisition?

The purchase price plus stamp duty, registration fees, transfer charges and the cost of documented construction or improvements. Loan interest is not included.

Do I pay CGT on property received as a gift or inheritance?

Not on receiving it. When you later sell, the cost is the fair market value on the date of death (inheritance, per Finance Act 2026) or the donor's cost (gift), and the holding period usually runs from the original acquisition.

Can I set off a loss on property?

A capital loss on immovable property can only be set off against capital gains on immovable property: not against salary or business income.

Taxv1.0.0Last reviewed 15 Sept 2026

Capital Gains Tax on Property Calculator 2026-27

Work out the capital gains tax when you sell a plot, house or flat in Pakistan: 15% flat for filers on property bought after 1 July 2024, the holding-period table for older property, the 236C tax withheld at transfer, and what you actually keep.

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How this is calculated

Capital gains on immovable property are taxed under section 37(1A) of the Income Tax Ordinance 2001 as a separate block of income.

Gain = sale consideration − cost of acquisition − incidental expenses. If the FBR valuation-table (or DC) value is higher than the declared price, that value is used. For inherited property, Finance Act 2026 fixes the cost at the fair market value on the date of death; family settlements among heirs are treated as transmission, not disposal.

Property acquired on or after 1 July 2024 (Finance Act 2024): no holding-period relief. Sellers on the Active Taxpayer List pay a flat 15%. Sellers not on the ATL pay tax at the normal Division I slab rates on the gain, subject to a minimum of 15%.

Property acquired before 1 July 2024: the Division VIII table inserted by Finance Act 2022 continues to apply,

Open plots: 15% (≤1 yr), 12.5% (1–2), 10% (2–3), 7.5% (3–4), 5% (4–5), 2.5% (5–6), 0% after 6 years.
Constructed property: 15%, 10%, 7.5%, 5%, then 0% after 4 years.
Flats: 15% (≤1 yr), 7.5% (1–2), 0% after 2 years.

Advance tax at transfer (s.236C): the registrar or housing society collects 2.75% of the sale value from filers and 11.5% from non-filers (Finance Act 2026, from 1 July 2026; previously 4.5% up to Rs 50M, 5% to Rs 100M, 5.5% above (FY2025-26)). For filers this is adjustable against the CGT and any excess is refundable through the return. Section 7E deemed-income tax and the 3% FED on property sales no longer apply.

Frequently asked questions

Is there capital gains tax if I sell after 6 years?: Only if you bought the property before 1 July 2024: then open plots are exempt after 6 years, houses after 4 and flats after 2. Property bought from 1 July 2024 onward is taxed at 15% for filers no matter how long you hold it.
How is the holding period counted?: From the date of acquisition to the date of disposal. For allotted plots FBR generally counts from the allotment/possession letter; for purchased property from the registered transfer. Keep the documents: the rate can swing from 15% to 0%.
Is 236C the same as capital gains tax?: No. 236C is an advance tax collected at the time of transfer on the full sale price. CGT is calculated on the gain when you file your return. Filers deduct the 236C already paid from their CGT; non-filers effectively lose it unless they file.
What counts as cost of acquisition?: The purchase price plus stamp duty, registration fees, transfer charges and the cost of documented construction or improvements. Loan interest is not included.
Do I pay CGT on property received as a gift or inheritance?: Not on receiving it. When you later sell, the cost is the fair market value on the date of death (inheritance, per Finance Act 2026) or the donor's cost (gift), and the holding period usually runs from the original acquisition.
Can I set off a loss on property?: A capital loss on immovable property can only be set off against capital gains on immovable property: not against salary or business income.

Sources

Finance Act 2026: amendments to sections 236C, 236K, 37(1A) and omission of s.7E (commentary): Mettis Global / Finance Act 2026
Withholding Income Tax Rate Card: Tax Year 2027: Federal Board of Revenue
FBR circular: no holding period for properties acquired on or after 1 July 2024 (s.37(1A)): Business Recorder / FBR

Version 1.0.0 · reviewed 15 Sept 2026. Rates change with the Federal Budget and regulator notifications; we update this tool when they do. Confirm with the primary source before making financial decisions.

Topics:FBR