Pakistan Capital Gain Tax (CGT) Guide 2026: Property & Securities

By Tariq MahmoodLast updated: August 202615 min read

Statutory source alignment verified for August 2026 by Tariq Mahmood (Statutory Research)

Understanding capital gain tax on property in pakistan, capital gains tax pakistan, and securities tax rates is essential for real estate investors, homeowners, stock traders, and heirs.

Under Section 37(1A) and Section 37A of the Income Tax Ordinance, 2001, capital gains realized on the disposal of immovable real estate property and listed stock market securities are subject to statutory FBR tax rates.

1. Property CGT Rates (Properties Acquired On or After July 1, 2024)

Under current FBR rules, capital gains realized on immovable properties purchased on or after 1 July 2024 are taxed as follows:

Taxpayer Status	FBR Capital Gain Tax (CGT) Rate
Active Tax Filer (ATL)	Flat 15% CGT Rate
Late Filer / Non-Filer	Progressive rates up to 45% (tied to income slabs)

2. Holding Period CGT Tiers for Older Property Purchases

For immovable properties acquired prior to July 1, 2024, CGT rates reduce gradually based on holding period length:

Holding period up to 1 year: 15% CGT for filers.
Holding period 1 to 2 years: 12.5% CGT.
Holding period 2 to 3 years: 10% CGT.
Holding period 3 to 4 years: 7.5% CGT.
Holding period 4 to 5 years: 5% CGT.
Holding period 5 to 6 years: 2.5% CGT.
Holding period exceeding 6 years: 0% CGT (Fully Exempt).

3. Tax on Inherited Property Sales

Receiving an inherited property in pakistan is not a taxable transaction. However, when the heir eventually sells the inherited real estate property, capital gain tax on sale of inherited property in pakistan applies based on the holding period measured from the date of inheritance or original acquisition cost.

4. Capital Gain Tax on Share Trading & Securities (Section 37A)

Capital gains from listed securities, Pakistan Stock Exchange (PSX) equities, and mutual funds are taxed under Section 37A and collected by National Clearing Company of Pakistan Limited (NCCPL):

Active Tax Filers: Flat 15% CGT on net capital gains.
Non-Filers: Up to 30% CGT.

5. Wealth Tax & Wealth Statements (Section 116)

While Pakistan does not levy a standalone wealth tax or inheritance tax, all resident taxpayers filing returns on FBR IRIS must submit a statutory Wealth Statement under Section 116 disclosing all global assets, bank accounts, and property holdings.

Calculate your capital gains on our Capital Gain Tax Calculator, read our Pakistan Property Tax Guide, or visit the main Pakistan Income Tax Hub.

Frequently Asked Questions

How is capital gain tax calculated on property sales in Pakistan for 2026?

For properties acquired on or after July 1, 2024, active FBR filers pay a flat 15% CGT on capital gains regardless of holding period. For non-filers, progressive CGT rates range up to 45%.

Is capital gain tax applicable on inherited property in Pakistan?

Acquiring inherited property is not a taxable event. However, when the beneficiary sells the inherited property, capital gains tax applies based on the difference between the final sale price and the fair market value at the date of inheritance.

Does Pakistan have a statutory Inheritance Tax or Wealth Tax?

Pakistan does not currently levy a separate Inheritance Tax or Wealth Tax. However, wealth statements detailing global net assets must be filed annually under Section 116.

What is the capital gain tax rate on stock market share trading in Pakistan?

Capital gains on listed securities and mutual funds are taxed under Section 37A at 15% for active tax filers (and up to 30% for non-filers) collected by NCCPL.

About the Author

Tariq Mahmood

Financial analyst and real estate tax consultant specializing in capital gains tax, securities taxation, and estate planning.