The Federal Board of Revenue (FBR) has come up with new changes to the FBR property valuation rates that will be used in 2026 to help close the gap between tax rates set officially and the real market values. In case you are intending to buy, sell or invest in real estate in Pakistan this year, it is important to know these new rates so as to know your precise tax payment and also how to avoid legal entanglements.
Over the last few years, FBR has been steadily updating property assessments of the key cities in the country such as Lahore, Karachi, Islamabad and Peshawar, to record the real estate economy and in order to raise tax income.
It is all you need to know about recent 2026 FBR property valuation changes and their effects on buyers and sellers.
Why Does FBR Update Property Rates?
In Pakistan, real estate properties usually have three different values:
Market Value: This is the real price at which the property is purchased or sold.
DC Rate (Deputy Commissioner Rate): The minimal official rate of stamp duty and local rates imposed by the provincial government.
FBR Rate: This is the rate that is established by the Federal Board of Revenue in order to calculate federal taxes, including Withholding Tax (WHT) and trade tax, Capital Gains Tax (CGT).
This will lead to the rates of FBR valuation being increased in 2026 by which time the official recorded value of the properties will be much closer to the actual market value and this will result in preventing tax evasion and investment in black money.
FBR cuts Islamabad property valuation rates by up to 50pchttps://t.co/2JxuIJzjWg#FBR #property pic.twitter.com/qkl1okA0La
— The_Nation (@The_Nation) February 3, 2026
Major Changes Expected in 2026
The latest valuation updates bring significant shifts for investors:
Rates Increases in Major Hubs: Major commercial and residential places in Islamabad (DHA, Bahria Town), Lahore, and Karachi will experience a visible increment in per-marla and per-square-foot rates.
New city Inclusion: The FBR has increased the network of its valuation to encompass more tier-2 and tier-3 cities in Pakistan.
Heavy Fines on Non-Filers: The difference between the tax rates of Active Taxpayers (Filers) and Non-Filers has been further increased in order to disincentivize the undocumented economy.
Impact on Taxes: Filer vs. Non-Filer (2026)
| Tax Type | Active Taxpayer (Filer) | Non-Filer |
| Withholding Tax (on Purchase) | 3% of FBR Value | Up to 10% of FBR Value |
| Withholding Tax (on Sale) | 3% of FBR Value | Up to 10% of FBR Value |
| Capital Gains Tax (CGT) | 15% (Depends on holding period) | Flat rate without exemptions |
How to Check FBR Property Valuation Rates 2026 Online
You do not have to go to a tax office and enquire on what the official value of your property goes. To check the rates online, it is easy to follow the following steps:
Go to the Federal Board of Revenue site:www.fbr.gov.pk.
Go to the bottom of the page and the tab of property valuation on the home page.
A list of cities will appear. Select your respective city (e.g., Lahore, Karachi, Multan).
Download the PDF notification.
Search for your specific society, sector, or road to see the per-marla or per-square-yard FBR rate for residential and commercial plots.
What is the difference between DC Rate and FBR Rate?
The DC rate is determined by the provincial government to collect stamp duty and CVT. The FBR rate is set by the federal government to collect Capital Gains Tax (CGT) and Withholding Tax (WHT). FBR rates are generally higher than DC rates.
Will FBR rates apply to my property if I bought it before 2026?
FBR rates apply at the exact time of the property transfer or sale. If you sell your property in 2026, the Capital Gains Tax and Withholding Tax will be calculated according to the active 2026 FBR rates.
Can a non-filer buy property in Pakistan in 2026?
Yes, non-filers can buy property, but they have to pay exceptionally high advance taxes (up to 10% or more) compared to Active Taxpayers (Filers), making the investment much more expensive.
READ: More informative news
