Almost every Pakistani pays withholding tax without filing a single form - your bank, your buyer, your employer or the company paying your dividend deducts it and sends it to the Federal Board of Revenue (FBR) on your behalf. The rate you get depends heavily on one thing: whether your name is on the Active Taxpayers List (ATL). This guide sets out the 2026-27 WHT rate card section by section, shows the filer versus non-filer gap, and explains how to claim adjustable tax back. To see the personal cost of not filing, use our filer vs non-filer tool.
How withholding tax works
Withholding tax is a collection mechanism, not a separate tax. A "withholding agent" - a bank, a property registrar, a company, a government department - deducts a percentage of a payment and deposits it against your CNIC or NTN. Most WHT is adjustable, meaning it counts as a credit against your final tax liability when you file your annual return; a minority is final and cannot be reclaimed. The rates live in the First Schedule and the withholding sections (Sections 148 to 236) of the Income Tax Ordinance 2001, updated each year by the Finance Act.
The single biggest variable is filer status. Non-filers - anyone not on the FBR Active Taxpayers List - are charged an increased rate under Rule 1 of the Tenth Schedule, generally 100% higher, and on property the penalty is far steeper. Check your status any time on the FBR ATL before a major transaction.
2026-27 rate card at a glance
The table below lists the major withholding tax sections and their standard filer and non-filer rates for tax year 2026-27. Rates for goods, services and contracts vary by taxpayer type (company versus individual or AOP), so treat these as the common representative figures and confirm your exact rate against the current FBR card.
| Transaction (Section) | Filer | Non-filer |
|---|---|---|
| Dividends - standard (150) | 15% | 30% |
| Profit on debt / bank deposits (151) | 15% | 35% |
| Property purchase - buyer, up to 50M (236K) | 1.5% | 10.5% |
| Property sale - seller, up to 50M (236C) | 4.5% | 11.5% |
| Supply of goods - company (153(1)(a)) | 5% | 10% |
| Services - general, company (153(1)(b)) | 8% | 16% |
| Execution of contracts - company (153(1)(c)) | 7% | 14% |
| Cash withdrawal over 50,000/day (231AB) | Nil | 0.6% |
| Prize on prize bond (156) | 15% | 30% |
Non-filers do not just pay more - they cannot even complete some transactions. Getting on the ATL by filing one return usually pays for itself on the very next property deal or dividend.
Property transactions (236C & 236K)
Property carries the widest filer/non-filer gap in the whole tax system, and both sides of a deal are taxed. The buyer pays advance tax under Section 236K; the seller pays under Section 236C. Rates are tiered by the fair market value of the property and there is now a middle "late filer" category for people who filed after the due date.
| Property value | Filer | Late filer | Non-filer |
|---|---|---|---|
| Buyer - Section 236K | |||
| Up to 50 million | 1.5% | 4.5% | 10.5% |
| 50 - 100 million | 2% | 6.5% | 14.5% |
| Above 100 million | 2.5% | 8.5% | 18.5% |
| Seller - Section 236C | |||
| Up to 50 million | 4.5% | 7.5% | 11.5% |
| 50 - 100 million | 5% | 8.5% | 11.5% |
| Above 100 million | 5.5% | 9.5% | 11.5% |
A non-filer buying a PKR 40 million plot pays 10.5% (PKR 4.2 million) up front, against 1.5% (PKR 600,000) for a filer - a PKR 3.6 million penalty for staying off the ATL. Both 236C and 236K are adjustable, so a filer recovers them against annual tax; a non-filer often cannot use the credit efficiently. For the deeper property picture see our property tax guide.
Banking, cash & profit on debt
Two banking-related withholdings matter most. Profit on debt - the return on your savings account, term deposit or bonds - is deducted at source by the bank under Section 151 at 15% for filers and 35% for non-filers. Where annual profit on debt is modest, this is effectively your final tax on that income; larger amounts fold into normal-rate assessment.
| Banking item (Section) | Filer | Non-filer |
|---|---|---|
| Profit on debt / bank deposit (151) | 15% | 35% |
| Cash withdrawal over 50,000 in a day (231AB) | Exempt | 0.6% |
| Dividend from a company (150) | 15% | 30% |
The cash-withdrawal tax under Section 231AB hits non-filers only: 0.6% on aggregate withdrawals above PKR 50,000 in a single day. Filers on the ATL are not touched by it at all - another quiet cost of not filing.
Why non-filers pay more
The "increased rate" for non-filers is deliberate policy: it pushes people to register and file rather than sit outside the net. Across most sections the non-filer rate is double the filer rate; on property and cash it is several times higher. There is also the late filer tier introduced for property - filing on time, before the due date, keeps you in the cheapest bracket. If you are not yet registered, start with an NTN registration and then file to reach the ATL.
Being a filer is not about a lower income tax bill - the slabs are the same for everyone. It is about avoiding the withholding penalty on every bank transaction, dividend and property deal you make all year.
Adjustable versus final tax - claiming it back
When you file your annual return through FBR IRIS, all your adjustable withholding - property, contracts, most bank profit, vehicle tax - is credited against your total tax liability. If the deducted amount exceeds what you actually owe, the excess is refundable. This is exactly why non-filers lose out: they pay the higher rate and then cannot claim the credit without filing.
| Type | What it means | Examples |
|---|---|---|
| Adjustable | Credited against annual tax; excess refundable on filing | Property (236C/236K), contracts (153), cash withdrawal (231AB) |
| Final / minimum | Discharges the liability on that income; not refundable | Prize winnings (156), certain export and dividend income |
Keep every deduction certificate - banks and registrars issue them, and you enter the totals in your return. Our income tax return filing service reconciles your WHT and files the claim so nothing is left on the table.
Frequently asked questions
What is the WHT rate on bank profit for 2026-27?
Profit on debt under Section 151 is 15% for filers and 35% for non-filers, deducted by the bank when profit is credited.
How much withholding tax does a property buyer pay?
Under Section 236K a filer pays 1.5% up to PKR 50 million, then 2% and 2.5% for higher tiers. Non-filers pay 10.5%, 14.5% and 18.5% respectively.
Why do non-filers pay more withholding tax?
The First Schedule and Tenth Schedule impose an increased rate - generally double, and far higher on property - to push people onto the Active Taxpayers List.
What is the dividend withholding tax rate?
The standard Section 150 rate is 15% for filers and 30% for non-filers. Some mutual funds and companies carry different rates - check your dividend voucher.
Can I get my withholding tax back?
Yes, if it is adjustable. File your annual return, credit the WHT against your liability, and any excess is refunded. Final taxes such as prize winnings are not refundable.
Is cash withdrawal taxed in Pakistan?
Only for non-filers - 0.6% under Section 231AB on daily cash withdrawals above PKR 50,000. Filers are exempt.