Property Tax Calculator Pakistan 2024-25 — Filer vs Non-Filer

How Property Tax Works in Pakistan

Property transactions in Pakistan are subject to withholding tax collected at the time of registration. The Finance Act 2024 maintains significantly higher rates for non-filers, making it costly to transact in property while not on the Active Taxpayer List (ATL). **Section 236C (Seller):** When you sell a property, the buyer's lawyer or registration authority deducts this tax from your proceeds. Filers pay 3%, non-filers pay 6%. **Section 236K (Buyer):** When you purchase property, you pay this tax at the time of registration. The non-filer rate is 12% — four times higher than the filer rate of 3%. **Section 7E (Annual deemed income):** This is an annual tax on investment properties (open plots, second homes, etc.). It is not a transaction tax — it applies every year you hold the property. The best financial decision most Pakistanis can make before a property transaction is to join the ATL by filing a simple income tax return, even with zero taxable income.