Property Tax in Pakistan: Filer or Non-Filer What You Must Know in 2025
Introduction: Why Property Tax Status Matters More Than Ever
If you’re planning to buy, sell, or even hold property in Pakistan, you’ve probably heard the terms filer and non-filer more than once. These two categories determine how much tax you pay, and trust us, the difference isn’t small.
The property tax in Pakistan: filer or non-filer debate has been heating up in recent years as the government tries to encourage more people to file their taxes. In 2025, the gap between what a filer and a non-filer pays on property transactions is bigger than ever, meaning your tax status could make or break a deal.
Whether you’re an investor looking at multiple properties, a first-time homebuyer, or someone selling a plot, understanding how this works can save you millions of rupees.
What Does Being a Filer or Non-Filer Mean?
In simple words:
- Filer: An individual enrolled in the FBR (Federal Board of Revenue) who submits their income tax returns on a regular basis.
- Non-Filer: An individual not submitting income tax returns and is not included in the Active Taxpayers List (ATL).
Why does this matter? Because tax laws in Pakistan are designed to reward filers with lower tax rates and penalize non-filers with much higher ones.
Property Tax in Pakistan for Filers
If you are a filer, congratulations — you’re already paying less compared to a non-filer. The filer property tax rate in Pakistan depends on the type of transaction:
- Buying Property: Filers pay 2% advance tax on the value of the property.
- Selling Property:Filers pay Capital Gains Tax (CGT) at reduced rates, depending on how long they’ve owned the property.
- Holding Property: Annual property tax varies by province, but filers often get small rebates or reduced rates.
For example: If you’re buying a plot worth PKR 10 million, your advance tax as a filer would be PKR 200,000.
Property Tax in Pakistan for Non-Filers
If you’re a non-filer, the story is very different. The non-filer property tax rate in Pakistan is significantly higher to push you toward becoming a filer:
- Buying Property: Non-filers pay 7% advance tax on the value of the property.
- Selling Property: CGT rates are higher, and in some cases, non-filers are not allowed to purchase property above certain values.
- Holding Property: Annual property tax remains the same in some provinces, but transaction-based taxes are far higher.
So for the same PKR 10 million property purchase, a non-filer would pay PKR 700,000 in advance tax, more than triple what a filer pays.
Filer vs Non-Filer Property Tax:
This clear gap shows why people rush to get on the ATL before major property deals.
How to Become a Filer in Pakistan
If you want to enjoy the filer property tax rate in Pakistan, the process isn’t as complicated as it sounds:
- Get a National Tax Number (NTN): Apply through the FBR website or your local tax office.
- Register with FBR’s IRIS system: This is where you file returns online.
- File Your Annual Tax Return: Submit your income details and pay any due tax.
- Check Your ATL Status: Once listed, you’re officially a filer.
Property Tax Rules in Pakistan for 2025
The property tax rules in Pakistan keep changing, so here are some key points for 2025:
- Non-filers cannot purchase property above a certain threshold (set by FBR each year).
- Advance tax is collected at the time of property registration or transfer.
- Provincial property tax (annual) is separate from federal advance tax and depends on the property’s location, size, and usage.
- Holding a property for longer periods reduces CGT rates for filers, but not as much for non-filers.
Common Myths About Property Tax in Pakistan
Myth 1: You can pass property off in someone else ‘s name to lower your taxes.
- Reality: They ‘re the same higher rates if the same person is also a non – filer.
Myth 2: “Becoming a filer is too expensive.”
- Reality: The filing process is affordable, and the tax savings often ou tweigh the cost in a single property deal.
Myth 3: “In Pakistan, all property taxes are the same.”
Obviously the truth of the matter is that different provinces have different property tax structure like Punjab Sindh KPK Balochistan
Property tax is the same everywhere in Pakistan.”
- Reality: Provincial taxes vary, Punjab, Sindh, KPK, and Balochistan have different property tax structures.
Why Non-Filers Lose Big
Let’s look at an example:
You’re buying a house worth PKR 15 million.
- As a filer, you pay 2% advance tax: PKR 300,000.
- As a non-filer, you pay 7% advance tax: PKR 1,050,000.
That’s a PKR 750,000 difference, enough to renovate your kitchen or pay for a year’s school fees for your children.
Property Tax Calculator Pakistan
Before any transaction, consult with property adviser and use a property tax calculator Pakistan to see exactly how much you’ll pay as a filer vs non-filer. Many online calculators (including those by FBR and provincial excise departments) let you enter the property value and instantly get your tax amount.
Final Thoughts: Filing is Worth It
The property tax in Pakistan: filer or non-filer question has a clear answer, being a filer is not just a legal obligation, it’s financially smart. The savings on a single property transaction can be huge, and you also get other benefits like easier access to loans and cleaner financial records.
If you’re still a non-filer, 2025 is the year to change that. With the gap in tax rates growing every year, staying a non-filer is like throwing money away.
