Property Tax in Lahore (TY 2026-27)
Lahore property tax guide TY 2026-27 - FBR valuation zones (DHA, Bahria, Model Town), 236C/236K WHT, Section 7E, Punjab stamp duty and registration.
Lahore property transactions face the federal stack (Section 236C 3%/10% seller, Section 236K 3%/10.5% buyer, Section 7E for properties above PKR 25M, Section 37(1A) CGT within five years) plus Punjab stamp duty, CVT, and Punjab Land Records Authority (PLRA) registration fees. Punjab's stamp duty rate is currently 1-3% depending on property type and zone.
FBR's Lahore valuation table is gazetted by zone - DHA Phase VI commands higher per-marla rates than Bahria Town or Model Town, which in turn exceed inner-city or peri-urban zones. The table is the federal WHT base; declaring a lower contractual price doesn't reduce 236C/236K. Punjab has digitised much of the registration process through PLRA's e-stamping and online verification portals.
Practical Lahore-specific considerations: PLRA's Arazi Record Centre (ARC) for title verification before purchase, the LDA/CDA jurisdiction split for new developments, file investments versus possession-letter transactions in unfinished housing schemes (where 236C/236K timing differs), and the persistent issue of overseas Pakistani buyers using DTAA-domiciled SPVs whose effective WHT treatment under 236C/236K is occasionally disputed by registrars.
Transfer tax in Lahore: 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 Lahore; the Lahore-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; Lahore valuation zones set the base value the percentages apply to.
How a property transfer is taxed in Lahore
- Find your property's zone in the FBR valuation table for Lahore - this notified value, not your contract price, is the base for every federal withholding. FBR's Lahore valuation table differs sharply between DHA, Bahria Town, Model Town, and inner-city zones - verify your property's zone before computing 236C/236K.
- The buyer pays Section 236K advance tax and the seller pays Section 236C, both collected at the point of registration by the Punjab Land Records Authority · Sub-Registrar offices across all tehsils.
- 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 Punjab 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 Punjab Land Records Authority · Sub-Registrar offices across all tehsils.
- 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 tax do Lahore property buyers pay?
Section 236K - 3% (filer) or 10.5% (non-filer) of FBR-notified value. On a PKR 30M DHA Lahore home that's roughly PKR 900,000 (filer) or PKR 3.15M (non-filer).
What's Punjab stamp duty on Lahore property?
Currently 1-3% depending on property type and zone, on top of the federal 236C+236K. Collected via PLRA e-stamping at the Sub-Registrar. Verify the current rate on punjab.gov.pk before transacting.
Are DHA Lahore properties valued higher?
Yes - DHA Phase VI/VII command the highest per-marla rates in FBR's Lahore table, followed by Bahria Town, Model Town, and Gulberg. Inner-city and peri-urban zones are substantially lower.
How does the PLRA Arazi Record Centre help?
ARC offers online title verification before purchase - confirming ownership, prior mortgages, and encumbrances. Strongly recommended for any Lahore property purchase to avoid post-transfer disputes.