Legacy taper for property acquired before 1 July 2024.
CGT due
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Applicable rate
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Net after CGT
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A tax clock that runs in your favour
For immovable property bought before 1 July 2024, Pakistan taxed the capital gain on a sliding scale tied to how long you held it. The longer you owned the property before selling, the lower the rate, until after six years the gain became exempt. This calculator applies that legacy taper, which still governs holdings acquired under the old regime. It is the rare tax rule where patience is directly rewarded: every year you hold, the slice the state takes shrinks. The tool takes your gain and your holding period and returns the capital gains tax and what you keep.
How the taper steps down, year by year
The calculator does not blend rates. It finds the single band that matches your holding period and applies that one rate to the whole gain. The bands this calculator applies start at 15 percent for a sale within the first year and step down each year: roughly 12.5 percent in year two, 10 percent in year three, 7.5 percent in year four, 5 percent in year five, 2.5 percent in year six, and zero once you pass six years of holding. These are the holding-period figures the FBR (Federal Board of Revenue) used for the pre-July-2024 regime, and because Pakistan rewrites property taxation often, you should confirm the exact band and rate that apply to your acquisition with the FBR before relying on the result.
The 1 July 2024 line that decides which rules apply
This taper is only for property acquired before 1 July 2024. The acquisition date, not the sale date, picks the regime. Property bought on or after that date falls under a different, flatter system that does not reward holding period the same way, and there is a separate calculator for it. So the first thing to check is when you acquired the asset, because using the wrong regime gives a wrong number. Note also the boundary at six years: a holding of exactly six years still bears the lowest 2.5 percent band in this model, while strictly beyond six years drops to zero.
A PKR 8 million gain sold in year three
Suppose you bought a plot before July 2024, it appreciated by PKR 8,000,000, and you sell in the third year of holding. The tool matches that to the year-three band and applies 10 percent, giving a capital gains tax of PKR 800,000 and leaving you PKR 7,200,000 of the gain. Had you sold inside the first year, the 15 percent band would have taken PKR 1,200,000. Had you held past six years, the tax on the same gain would have been zero.
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The chart above traces the rate stepping down with each year held, with your current inputs reflected live.
Who needs this, and what it leaves out
This is for owners of older property, plots, or constructed units bought before the July 2024 cut-off who are deciding when to sell. A genuinely useful judgement: if you are close to crossing into a lower band, the tax saved by waiting a few more months can be substantial, so check your exact acquisition date before listing. What the tool leaves out matters too. It taxes only the gain, not the sale price, and it does not include the separate transfer charges on a sale, such as the seller advance tax, or the provincial stamp duty, registration fee, and capital value tax that the relevant provincial revenue authority and registration office levy on top. Budget for those alongside the CGT.
How is the gain itself worked out for this tax?
The gain is broadly the sale consideration less your cost of acquisition and allowable costs, and the FBR generally references its own notified property values rather than just the figure on the deed. This calculator asks only for the gain because the cost base depends on your records, so compute the gain carefully first, using the FBR-notified values where they apply, and then enter it here.
Does a constructed house and an open plot taper the same way?
The legacy regime applied holding-period tapers to both, but the precise schedules for open plots, constructed property, and flats were not always identical, and an open plot is the classic case that reaches zero after the full period. This tool uses one schedule that reaches zero after six years, so if your property is a specific category, confirm the exact band schedule that applied to it with the FBR before you treat the figure as final.