If you have ever sold a property or cashed out stocks in Pakistan and wondered, "Wait — how much tax do I owe?" — you are not alone. Capital gains tax in Pakistan is one of the most misunderstood topics in personal finance, and a single mistake can cost you lakhs of rupees.
The good news? Once you understand the rules, the numbers are actually straightforward. This complete guide breaks down CGT Pakistan 2025–26 for both property and stocks — with real examples, clear tables, filer vs non-filer comparisons, and free calculator links so you can work out your exact liability in minutes.
Let's start from the beginning.
What Is Capital Gains Tax in Pakistan?
Capital gains tax (CGT) is a tax charged on the profit you make when you sell an asset — like a house, a plot, or shares on the Pakistan Stock Exchange (PSX) — for more than you originally paid for it.
For example: You bought a plot in Lahore for PKR 50 lakh and sold it for PKR 80 lakh. Your capital gain is PKR 30 lakh. The government, through the Federal Board of Revenue (FBR), takes a percentage of that profit as CGT.
Under the Income Tax Ordinance 2001, capital gains tax applies to:
- Immovable property (plots, houses, flats, commercial buildings, agricultural land in urban areas)
- Listed securities (stocks, shares, mutual funds, REITs on PSX)
- Movable capital assets (including gold — yes, profit from selling gold is taxable in Pakistan)
The rate you pay depends on three things: what you sold, when you bought it, and whether you are on the Active Taxpayers List (ATL).
Why Your ATL / Filer Status Changes Everything
Before we get into the rates, this is the single most important thing to understand: being a registered tax filer on Pakistan's Active Taxpayers List (ATL) directly determines how much CGT you pay.
- ATL Filer: You get flat, lower CGT rates
- Non-Filer: You pay higher, often progressive rates — sometimes up to 45%
- Late Filer: Penalties and higher rates apply
If you are not already a filer, the very first step in any property transaction or investment is to register your NTN (National Tax Number) and get on the ATL through the FBR Iris portal. It takes a few hours and saves you enormous amounts of money.
Capital Gains Tax on Property in Pakistan 2025–26
The Big Change: New Regime vs Old Regime
The Finance Act 2024 introduced the most significant reform to CGT on immovable property in years. The key dividing line is July 1, 2024.
Properties Bought On or After July 1, 2024 — New Regime
The holding period no longer matters. Whether you sell after 6 months or 6 years makes no difference. The rule is simple:
- ATL Filer: Flat 15% CGT on the net capital gain
- Non-Filer (Individual/AOP): Progressive slab rates apply, but not less than 15% — can go up to 45%
- Companies not on ATL: Corporate tax rate of 29%
This is a major shift. The government removed the old incentive of holding property longer to pay less tax. Now, it is all about your filer status.
Properties Bought Before July 1, 2024 — Old Regime Still Applies
If you bought your property before the cutoff date, the old holding period-based system still governs your CGT when you sell. The longer you held the property, the less you pay.
Here is how the old regime works for open plots (purchased before July 1, 2024):
- Held up to 1 year: 15%
- Held 1–2 years: 12.5%
- Held 2–3 years: 10%
- Held 3–4 years: 7.5%
- Held 4–5 years: 5%
- Held 5–6 years: 2.5%
- Held more than 6 years: 0% (exempt)
For constructed houses and buildings (old regime):
- Held up to 1 year: 15%
- Held 1–2 years: 10%
- Held 2–3 years: 7.5%
- Held 3–4 years: 5%
- Held more than 4 years: 0% (exempt)
For flats (old regime):
- Held up to 1 year: 15%
- Held 1–2 years: 10%
- Held more than 2 years: 0% (exempt)
Real Example — Old Regime: Mr. Ali bought an open plot in DHA Lahore for PKR 80 lakh in June 2023. He sold it in January 2026 for PKR 1.2 crore. Holding period = approximately 2.5 years → CGT rate = 10%. Capital gain = PKR 40 lakh. CGT payable = PKR 4 lakh.
Real Example — New Regime: Ms. Sara (ATL filer) bought an apartment in Bahria Town Karachi for PKR 1.5 crore in August 2024. She sold it in March 2026 for PKR 2 crore. Net gain = PKR 50 lakh. CGT = 15% flat = PKR 7.5 lakh. Holding period does not matter.
How Is Capital Gain Calculated on Property?
The formula is:
Capital Gain = Sale Price – (Purchase Price + Allowable Expenses)
Allowable expenses you can deduct include:
- Renovation and improvement costs (with receipts)
- Legal and transfer fees
- Agent/broker commission
- FBR and stamp duty charges paid at time of purchase
Important: The FBR uses its own valuation tables and DC (District Collector) rates to determine the "official" value of your property. Your CGT is calculated on whichever is higher — the actual transaction value or the FBR/DC rate. You cannot declare a lower price to save tax.
To avoid doing this manually, use the Pakistan Property Tax Calculator ( — it handles all the current FBR rates and filer/non-filer slabs automatically, for free.
Other Property Taxes You Need to Know About
CGT is not the only tax on a property transaction. Here is the complete picture for 2025–26:
Advance Tax (Sections 236C and 236K)
- Section 236C: Paid by the seller at time of transfer
- Section 236K: Paid by the buyer at time of purchase
- Rates vary by property value and filer status
- This is a withholding tax — it is adjustable against your final annual tax return
Capital Value Tax (CVT)
- 2% of property value — paid by the buyer
- Collected at time of registration under the Federal Act 2006
Stamp Duty
- Approximately 1–3% of property value — a provincial tax
- Collected at time of property transfer documentation
Federal Excise Duty (FED)
- 5% on first-time allotment or transfer of residential property
- Applies to the first owner at time of booking in a housing scheme
7-E Tax
- A tax on deemed rental income from properties not rented out
- Currently under Supreme Court review — check the latest FBR guidelines before any transaction
You can estimate your withholding tax obligations using the Pakistan Withholding Tax Calculator .
Capital Gains Tax on Stocks in Pakistan 2025–26
CGT on listed securities — shares traded on the Pakistan Stock Exchange (PSX), mutual funds, and REITs — follows a separate set of rules under the Income Tax Ordinance 2001.
Securities Acquired On or After July 1, 2024
- ATL Filer (Individual, AOP, Company on ATL): Flat 15% CGT
- Non-Filer Individual/AOP: Personal income tax slab rates apply, minimum 15%
- Company not on ATL: Corporate tax rate applies (29% for standard companies)
Securities Acquired Between July 1, 2022 and June 30, 2024
CGT is calculated on a slab basis depending on holding period:
- Held up to 6 months: Higher rate
- Held 6–12 months: Moderate rate
- Held more than 12 months: Lower rate (Exact slab rates apply as per FBR schedule for this window)
Securities Acquired Before July 1, 2022 but After July 1, 2013
Flat 12.5% CGT regardless of holding period.
Securities Acquired Before July 1, 2013
Exempt — 0% CGT.
Mutual Funds and REITs
- Stock funds: 15% CGT deducted at source by the fund at redemption (for individuals/AOPs)
- Other funds (income funds, money market funds): 5% flat CGT
- REIT schemes: 15% CGT at redemption
Real Example — Stocks: Mr. Hassan (ATL filer) bought shares on PSX in September 2024 for PKR 5 lakh and sold them in February 2026 for PKR 7.5 lakh. Securities acquired after July 1, 2024 → flat 15% CGT. Capital gain = PKR 2.5 lakh. CGT = PKR 37,500.
If Mr. Hassan were a non-filer, his tax could be calculated on progressive slab rates starting at 15% and potentially higher depending on his total income.
Is Gold Profit Taxable in Pakistan?
Yes — and this surprises many people. Gold is specifically listed as a taxable capital asset under the Income Tax Ordinance. There is no separate flat rate for gold. Instead, profit from selling gold is added to your total annual income and taxed at the applicable income tax slab rate.
So if you bought gold jewellery or bars at a lower price and sold them at a profit, that profit is taxable income in Pakistan. This is often communicated incorrectly even by some FBR helpline agents, but the law is clear.
CGT on Inherited and Gifted Property
Inherited Property: Capital gains tax does not apply to inheritance itself. However, when you later sell the inherited property, CGT applies on any gains made after the date of inheritance. The cost basis for CGT purposes becomes the Fair Market Value (FMV) of the property at the time of inheritance — not the original price your family paid.
Gifted Property: CGT can apply on gifted property depending on how the gift is structured and the relationship between parties. Always consult an FBR-registered tax consultant before transferring property as a gift to avoid unexpected liability.
CGT for Overseas Pakistanis
Overseas Pakistanis (NICOP/POC holders) have specific provisions under Sections 236C and 236K. In certain circumstances, overseas filers can achieve a 0% CGT rate on property, but this depends on their active filer status with FBR and the type of transaction. Advance tax rates may also differ. If you are a non-resident Pakistani transacting in property, verify your current status with a tax advisor before finalising any deal.
Filer vs Non-Filer — Side-by-Side Comparison
Here is a quick comparison for property acquired after July 1, 2024:
| Scenario | ATL Filer | Non-Filer |
|---|---|---|
| CGT on property gain | Flat 15% | 15% to 45% (progressive) |
| Advance tax 236C (seller) | Lower rate | Double or higher |
| Advance tax 236K (buyer) | Lower rate | Double or higher |
| CGT on PSX stocks (post July 2024) | Flat 15% | Slab rates, min 15% |
| Mutual fund CGT | 15% | Higher slab rate |
The message is simple: becoming a filer is not just a legal obligation — it is a direct financial advantage worth tens of thousands to millions of rupees on property transactions.
How to Pay Capital Gains Tax in Pakistan — Step by Step
- Calculate your capital gain using the formula: Sale Price minus Purchase Price minus Allowable Expenses
- Determine your applicable CGT rate based on asset type, acquisition date, and filer status
- Log in to the FBR Iris portal (iris.fbr.gov.pk)
- Generate a PSID (Payment Slip ID) for the applicable tax head
- Pay via authorized bank branch or online banking using the PSID
- Keep the CPR (Computerized Payment Receipt) as proof
- Report the transaction in your annual income tax return for the relevant tax year (July to June)
For a detailed breakdown of your Pakistan income tax obligations alongside CGT, use the Pakistan Income Tax Calculator .
How to Legally Reduce Your Capital Gains Tax in Pakistan
There are legitimate, FBR-compliant ways to reduce your CGT liability:
- Stay on the ATL — file your returns every year without fail. This single step cuts your rate from potentially 45% down to a flat 15%.
- Deduct all allowable expenses — agent commissions, legal fees, renovation costs, and improvement expenses all reduce your taxable gain. Keep every receipt.
- Under the old regime, hold property longer — if you bought before July 2024, longer holding still reduces your rate.
- Structure transactions correctly — especially for inherited or gifted property, the timing and method of transfer affects your CGT base.
- Consult an FBR-registered tax consultant before any major transaction — the fee is always less than a surprise tax bill.
Free Calculators for Capital Gains Tax in Pakistan
Working out CGT manually is time-consuming and prone to error — especially when you need to apply different rates for old vs new regime, filer vs non-filer, or adjust for holding periods and allowable expenses.
Free Calculators offers a suite of tools specifically built for Pakistani taxpayers:
- Pakistan Property Tax Calculator —
- Pakistan Withholding Tax Calculator —
- Pakistan Sales Tax Calculator —
- Pakistan Income Tax Calculator —
- Pakistan Zakat Deduction Calculator —
You can also explore the full tools directory — all tools are free, updated for 2025–26 FBR rates, and require no login or signup.
For international tax comparison, Free Calculators also provides the UK Income Tax Calculator (PAYE) , the US Federal Income Tax Calculator , and the India Income Tax Calculator — useful if you have income across multiple jurisdictions.
Location-Specific Notes on CGT in Pakistan
While CGT rates are set federally by FBR, certain taxes vary by province. Here is what to know by city and province:
Punjab (Lahore, Rawalpindi, Faisalabad, Gujranwala, Multan): Punjab uses its own DC rates for property valuation and applies Urban Immovable Property Tax (UIPT) on top of federal CGT. For DHA Lahore, Bahria Town Lahore, and Gulberg Lahore, FBR valuations are updated frequently — always check the latest FBR valuation table before transacting.
Sindh (Karachi): Sindh levies its own stamp duty and property transfer fees. For areas like DHA Karachi, Clifton, and Bahria Town Karachi, the Sindh Revenue Board (SRB) coordinates with FBR on advance tax collection.
Islamabad / Federal Capital: Islamabad follows federal tax rules directly. For Blue Area commercial property, Bahria Enclave, and F or G sectors, FBR valuations apply without a separate provincial layer.
KPK (Peshawar, Abbottabad) and Balochistan (Quetta, Gwadar): Provinces set their own DC rates. Gwadar has special economic zone (SEZ) provisions that may affect certain commercial property transactions — verify with an FBR consultant for specific exemptions.
Frequently Asked Questions (FAQs)
Q: What is the capital gains tax rate in Pakistan 2025–26? A: For properties and securities acquired after July 1, 2024, the CGT rate is 15% flat for ATL filers. Non-filers face progressive rates ranging from 15% to 45% depending on asset value.
Q: Is CGT applicable on inherited property in Pakistan? A: CGT does not apply to the act of inheritance itself. However, when you sell inherited property, CGT applies on gains made after the date of inheritance, based on FMV at that date.
Q: What is the difference between advance tax and capital gains tax in Pakistan? A: Advance tax (Sections 236C and 236K) is collected at the time of property transfer as a withholding tax and is adjustable against your annual return. CGT is the actual tax on your profit from the sale, calculated after the transaction.
Q: Do non-filers pay more CGT in Pakistan? A: Yes. Non-filers pay progressive slab rates on property and stock gains, with a minimum of 15% but potentially up to 45%, compared to a flat 15% for ATL filers.
Q: Is profit from selling gold taxable in Pakistan? A: Yes. Gold profit is added to your total annual income and taxed under standard income tax slab rates. There is no separate CGT rate for gold.
Q: How do I calculate CGT on property in Pakistan for free? A: Use the Pakistan Property Tax Calculator — it applies all current FBR rules, old and new regimes, and filer/non-filer slabs automatically.
Q: What is Section 236C and 236K in Pakistan property tax? A: Section 236C is the advance withholding tax paid by the seller at the time of property transfer. Section 236K is paid by the buyer. Both are adjustable against final tax liability and vary by filer status and property value.
Q: Can I deduct renovation costs from capital gains tax in Pakistan? A: Yes. Documented improvement and renovation expenses, along with legal fees and agent commissions, are deductible from your gross gain to arrive at the net taxable capital gain.
Conclusion — What You Should Do Right Now
Capital gains tax on property and stocks in Pakistan has changed significantly since July 2024, and the rules will continue evolving with each Finance Bill. Whether you are selling a plot in DHA Lahore, an apartment in Bahria Town Karachi, or cashing out your PSX portfolio — knowing your CGT liability before the transaction is the difference between a smart financial decision and a costly surprise.
Here is your action checklist:
- Check your ATL status at FBR Iris — if you are not a filer, register now
- Identify whether your property falls under the old or new CGT regime (bought before or after July 1, 2024)
- Calculate your net capital gain after allowable expenses
- Use the free Pakistan Property Tax Calculator to estimate your exact CGT
- Explore all free tax tools — including income tax, withholding tax, sales tax, and zakat calculators built for Pakistani taxpayers
Tax compliance in Pakistan rewards filers with significantly lower rates. File early, stay on the ATL, and always calculate before you transact.
Explore Advanced Tax Tools for Free at Free Calculators —
Disclaimer: This article is for informational purposes only and reflects FBR rules as of the 2025–26 tax year. Tax laws in Pakistan change frequently. Always consult a qualified FBR-registered tax consultant before making any financial or property transaction decision.
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