Withholding & Advance Tax · Section 236K · Tax Year 2026-2027
Property Purchase Tax Calculator
Advance tax collected from the buyer at registration. A flat 1.25% on the Active Taxpayers’ List; off it, the rate is banded by fair market value and applies to the whole value, not just the amount above the threshold.
Reference
Section 236K rates by value band
| Fair market value | On the ATL | Off the ATL | Tax on your purchase |
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Division XVIII of Part IV of the First Schedule, after the Finance Act 2026. The band rate applies to the entire fair market value. Provincial stamp duty, capital value tax and registration fees are separate and not included here.
Step by step
How the tax is worked out
Enter the fair market value
The notified valuation governs, not the figure on the instrument.
Choose your filer status
A filer pays 1.25% whatever the value; a non-filer’s rate rises with it.
Read the band
The rate applies to the whole value, so crossing a threshold is a step, not a taper.
Keep the challan
A filer adjusts this against the year’s liability when filing.
Reading the result
Budget it into the purchase, not after it
This is collected by the registering authority at the time of transfer, so it has to be available on the day. A buyer who has committed every rupee to the price and the agent cannot complete, and the sale stalls at the registry.
It belongs in the purchase budget alongside stamp duty and the registration fee, not in a list of things to sort out afterwards.
Filer status is checked on the day
The rate depends on the Active Taxpayer List at the time of the transaction, not on whether you have filed. Someone who filed last week but has not yet appeared on the list is charged the higher rate. For a purchase of any size that timing gap is expensive, and it is avoidable by checking the list before fixing a registration date.
It is your money, held in advance
This is advance income tax credited against your own liability. It is recoverable through your return if your final tax is lower — which means keeping the challan, because reconstructing it later from a registry record is difficult.
Where this stops
The tax follows the value used for the transaction under the applicable valuation table, which is frequently not the price in the agreement. Working the figure out from the negotiated price can give a number well below what is actually collected.
FAQs
Property purchase tax FAQs
How much is Section 236K on a property purchase?
For a buyer on the Active Taxpayers' List it is a flat 1.25% of the fair market value in every band, after the Finance Act 2026 replaced the old stepped filer rates. For a buyer not on the list it is banded: 10.5% up to Rs 50 million, 14.5% over Rs 50 million and up to Rs 100 million, and 18.5% above Rs 100 million.
Is the higher rate only on the amount above the threshold?
No — and this catches people out. The band sets a single rate that applies to the entire fair market value. A non-filer buying at Rs 100,000,001 pays 18.5% on the whole amount, not 14.5% on the first hundred million. Crossing a threshold is a cliff, not a slice.
What value is the tax charged on?
The fair market value as determined for the purpose, which is generally the FBR valuation for the area rather than whatever is written on the instrument. Entering the price you agreed can understate the tax if the notified valuation is higher.
Can I get it back?
If you are on the Active Taxpayers' List, yes — it is advance tax and adjustable against your income tax liability for the year, so it comes off what you owe or feeds a refund. For a buyer not on the list it is treated as final, subject to conditions, which is a large part of why the non-filer rate is so much higher.
Who collects it?
The registering, recording or attesting authority at the time of registration or transfer. You will not be able to complete the transfer without paying it, and the challan is your evidence when you file.
Is this the same as the tax the seller pays?
No. The seller pays Section 236C on the sale, currently a single 2.75% for a filer and 11.5% otherwise. Both can arise on the same transaction, from opposite sides.
What else is payable on a purchase?
Provincial stamp duty, capital value tax, the registration fee and any town or TMA fee, none of which are federal and all of which vary by province and locality. This calculator covers the federal Section 236K charge only.
Related tools
Stamp duty and the rest of the transfer cost
Section 236K is only the federal slice. Stamp duty, CVT and the registration fee are provincial.
Open Property Registration Cost Calculator