Property Tax in Karachi (TY 2026-27)
Karachi property tax guide TY 2026-27 - FBR-notified valuation zones, Section 236C/236K transfer WHT, Section 7E deemed income, Sindh stamp duty.
Karachi property transactions face the standard federal stack - Section 236C 3%/10% (seller WHT), Section 236K 3%/10.5% (buyer WHT), Section 7E 1% on deemed income for properties above PKR 25 million, and Section 37(1A) CGT on disposals within five years - plus Sindh provincial stamp duty (currently 3-4% of FBR-notified value), CVT, registration fees, and Sindh Building Control Authority charges where applicable.
FBR's Karachi valuation tables are gazetted by district and zone. DHA Phase VI/VII/VIII rates are several multiples of inner-city or peri-urban rates. The valuation table - not the declared price - is the base for every federal WHT. Sellers attempting to under-declare to reduce stamp duty don't reduce their 236C burden; the FBR table is the floor.
Practical Karachi-specific issues: KSB (Karachi Sub-Registrar Building) procedures, Sindh Revenue Board e-stamping, conflicting jurisdictional claims between CDA and SBCA in some zones, and the persistent challenge of conveyance deeds with informal sale agreements (allotment letters, possession documents) preceding the formal registry transfer. Each layer can complicate WHT crediting if not documented carefully on the IRIS return.
Transfer tax in Karachi: worked example
Federal withholding on a property transfer is a percentage of the FBR-notified value - not the declared sale price - and the non-filer rate is more than triple the filer rate. These rates apply nationwide, including Karachi; the Karachi-specific variable is which valuation zone your property falls in.
| FBR value | Buyer 236K (filer 3%) | Buyer 236K (non-filer 10.5%) | Seller 236C (filer 3%) |
|---|---|---|---|
| Rs 10,000,000 | Rs 300,000 | Rs 1,050,000 | Rs 300,000 |
| Rs 25,000,000 | Rs 750,000 | Rs 2,625,000 | Rs 750,000 |
| Rs 50,000,000 | Rs 1,500,000 | Rs 5,250,000 | Rs 1,500,000 |
| Rs 100,000,000 | Rs 3,000,000 | Rs 10,500,000 | Rs 3,000,000 |
Section 236K (buyer) is 3% for filers / 10.5% for non-filers; Section 236C (seller) is 3% for filers / 10% for non-filers of the FBR-notified value. Property above PKR 25M FBR value also falls under Section 7E deemed-income tax. Rates are national; Karachi valuation zones set the base value the percentages apply to.
How a property transfer is taxed in Karachi
- Find your property's zone in the FBR valuation table for Karachi - this notified value, not your contract price, is the base for every federal withholding. FBR notifies separate valuation tables per Karachi zone - DHA Phase VI commands higher rates than Gulshan or Malir.
- The buyer pays Section 236K advance tax and the seller pays Section 236C, both collected at the point of registration by the Sindh Board of Revenue · Sub-Registrar offices in DHA, Clifton, Gulshan, Malir.
- Confirm both parties' Active Taxpayer List status before the transfer date - the filer rate cannot be claimed retroactively if you were a non-filer on the day of registration.
- Provincial stamp duty, capital value tax, and registration fees are charged by Sindh on top of the federal WHT above.
- Claim the 236K / 236C amounts as adjustable advance tax on your annual IRIS return - keep the challans and the registered deed as evidence.
Buyer & seller checklist
- Verify title / encumbrances with the Sindh Board of Revenue · Sub-Registrar offices in DHA, Clifton, Gulshan, Malir.
- Look up the FBR valuation-zone rate for the property.
- Get on the ATL (file a return) to pay 236K at 3%, not 10.5%.
- Budget for stamp duty, CVT, and registration fees separately.
- Check your holding period for Section 37(1A) capital gains.
- Confirm ATL status so 236C is withheld at 3%, not 10%.
- Retain the purchase deed to compute the gain accurately.
- Report the disposal and adjust 236C on your IRIS return.
Frequently asked questions
How much advance tax do Karachi property buyers pay?
Section 236K - 3% (filer) or 10.5% (non-filer) of FBR-notified value, collected by the Karachi sub-registrar at transfer. On a PKR 50M DHA flat that's roughly PKR 1.5M (filer) or PKR 5.25M (non-filer).
Does Section 7E apply to Karachi properties?
Yes - Section 7E applies to all immovable property above PKR 25 million FBR-notified value across Pakistan, including Karachi. Effective rate: 0.05% of FBR value annually (1% of deemed 5% income).
What's Sindh stamp duty on property?
Currently 3-4% of FBR-notified value, on top of the federal 236C+236K. Sindh Revenue Board collects via e-stamping at the Sub-Registrar. Verify the current rate on srb.gos.pk before transacting.
How is Karachi's FBR valuation table organised?
By district and zone - DHA Phase VI/VII/VIII command the highest rates, Defence/Clifton next, then Gulshan-e-Iqbal, then peri-urban zones. The full table is gazetted on fbr.gov.pk per zone.