Property · Section 37(1A) · Tax Year 2026-2027
Property Capital Gains Tax Calculator
Section 37(1A) tax on selling a plot, house or flat. Acquisitions from 1 July 2024 turn on whether you are on the Active Taxpayers’ List at disposal — a non-filer pays normal slab rates, not 15%. Earlier acquisitions keep the taper, which runs out at a different point for each property type.
Reference
Holding-period taper
Not applicable to acquisitions from 1 July 2024
| Holding period | Rate | Tax on your gain |
|---|
Shown when the pre-July-2024 regime is selected, for the property type chosen. Acquisitions from 1 July 2024 have no taper — the rate is set by filer status alone.
All three tables
Pre-July-2024 rates by property type
| Holding period | Open plot | Constructed property | Flat |
|---|---|---|---|
| Up to one year | 15% | 15% | 15% |
| Over one, up to two years | 12.5% | 10% | 7.5% |
| Over two, up to three years | 10% | 7.5% | Nil |
| Over three, up to four years | 7.5% | 5% | Nil |
| Over four, up to five years | 5% | Nil | Nil |
| Over five, up to six years | 2.5% | Nil | Nil |
| Over six years | Nil | Nil | Nil |
Step by step
How the rate is chosen
Acquisition date first
From 1 July 2024, neither the property type nor how long you held it changes the rate.
Then filer status
On the Active Taxpayers’ List at disposal fixes it at 15%.
Otherwise, normal rates
Slab rates for an individual or AOP with a 15% floor; 29% for a company.
Older property, older tables
Pick the type and holding period and the taper does the rest.
Reading the result
Acquisition date selects the rules
Property bought before and after 1 July 2024 is taxed under different arrangements, so the date you acquired matters as much as the date you sell. Two plots sold on the same day can be taxed quite differently.
For anything acquired from that date, filer status carries directly into the rate, which makes ATL registration a material part of the sale economics rather than an administrative detail.
Improvement costs reduce the gain — if you can prove them
The gain is proceeds less cost, and cost properly includes what you spent improving the property: construction, a boundary wall, a major renovation. Undocumented cash spending is difficult to sustain, which is why keeping contractor invoices and bank transfers for years is worth the filing space.
236C is not this tax
Section 236C is advance tax collected on the sale price at registration, regardless of whether you made a gain. This is the tax on the gain itself. Both can arise on the same transaction, and the advance tax is credited rather than being an additional final cost.
The Section 236C calculator covers the collection at registration.
Where this stops
This computes from figures you supply. Where the recorded transaction value differs from what actually changed hands — common in practice — the computation follows the recorded figures, which is a problem to solve before the sale, not after.
FAQs
Property capital gains tax FAQs
What CGT rate applies to property?
It depends on when you acquired it. For property acquired on or after 1 July 2024 the rate is 15% if you are on the Active Taxpayers' List at the date of disposal, and the normal rate otherwise — slab rates for an individual or AOP, never below 15% of the gain, or the 29% company rate for a company. Property acquired on or before 30 June 2024 keeps the older holding-period tables, which taper to nil.
Do filers and non-filers pay the same?
Not for anything acquired from 1 July 2024. Division VIII gives 15% only to a person on the Active Taxpayers' List on the date of disposal; a person off the list is charged at normal rates, subject to a proviso that for an individual or AOP the tax "shall not be less than 15% of the gain". With other income in the mix that can reach 45%.
How long until the gain is exempt?
Only under the pre-July-2024 regime, and it depends on the type: an open plot tapers over six years, a constructed property over four, and a flat over two. From 1 July 2024 there is no taper at all — holding it longer does not reduce the rate.
Why are open plots taxed more heavily than flats?
The older tables were built to discourage holding undeveloped land for speculation. An open plot still pays 12.5% in year two where a flat pays 7.5% and reaches nil after two years.
How is the gain calculated?
Sale consideration less your acquisition cost and allowable adjustments such as documented improvement costs. Enter the net gain here. Note that the consideration is not allowed to be understated below the FBR or provincial valuation for this purpose.
Is this separate from the Section 236C advance tax?
Yes. Section 236C is collected from the seller at the time of transfer whether or not there is any gain; this is the tax on the actual gain. The 236C amount is adjustable against your liability when you file, so a loss-making sale can produce a refund.
How is the non-filer slab rate worked out here?
The gain is stacked on the other taxable income you enter and the extra tax it causes is expressed as a rate on the gain — that is what charging a slice of income at the normal rate means. Leave other income blank and the gain is rated on its own, which for a modest gain falls below the 15% floor.
Related tools
Advance tax at the transfer too
Section 236C is collected from the seller whether or not there is a gain, and is adjustable against this.
Open Section 236C Calculator