FBR issues revised tax slabs for property deals – July 2025

The Federal Board of Revenue (FBR) has announced a new tax structure for property transactions in the current financial year, putting higher taxes on property sellers, especially those who are not tax filers.

For tax filers, selling property now comes with a withholding tax of 4.5%. If the property’s value is above Rs100 million, the tax rate increases to 5.5%.

For non-filers, the rates are much higher. Selling property worth over Rs100 million will result in a withholding tax of 11.5%. Buyers also face withholding taxes, but their rates are lower compared to sellers.

Tax filers buying property worth up to Rs50 million will pay a 2.5% tax, and for properties over Rs100 million, the tax rises to 6.5%. Non-filers will face steep taxes ranging from 10.5% to 18.5%, depending on the property’s value.

The FBR says this new policy is aimed at increasing tax collection and bringing more people into the tax system. The taxes are collected during the transfer of property ownership and then sent to the FBR by the revenue department.

This step is part of the government’s wider efforts to broaden the tax base and control undocumented transactions in the real estate sector.

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