Withholding tax touches almost every transaction in Pakistan. It is deducted from your salary, collected when you buy or sell property, charged on bank profit, added to your electricity and phone bills, and applied to nearly every payment a business makes to a supplier or contractor.
Two things decide how much you pay: the section of the Income Tax Ordinance that applies, and whether your name appears on the Active Taxpayers List. Non-filers routinely pay double, and on property they can pay several times what a filer pays.
This is the complete Filing.pk withholding tax rate card for tax year 2027, effective from 1 July 2026, reflecting the amendments made by the Finance Act 2026. Every rate below is shown for filers and non-filers, with the FBR payment code where one applies.
Quick answer: For tax year 2027 (1 July 2026 to 30 June 2027), withholding tax rates in Pakistan depend on the transaction and on your Active Taxpayer List status. Salary is taxed on eight slabs from 0% up to Rs 600,000 to 35% above Rs 7,000,000. Property purchase under section 236K is 1.25% for filers against 10.5% to 18.5% for non-filers, and property sale under 236C is 2.75% against 11.5%. Bank profit is 20% for filers and 40% for non-filers. As a rule, a person not on the ATL pays double the standard rate under the Tenth Schedule.
Not sure which rate applies to you? Ask a Filing.pk consultant or message us on WhatsApp.
The complete 11-page Filing.pk Income Tax Withholding Chart for tax year 2027, subject-wise with FBR payment codes. Free, no sign-up required.
Withholding tax is income tax collected at source. Rather than waiting for you to file a return, the law requires the person making a payment — your employer, your bank, a property registrar, a company paying a supplier — to deduct tax before handing over the money and deposit it with the FBR against your name.
Most withholding tax is adjustable, meaning you offset it against your annual tax liability when you file, and reclaim anything over-deducted. Some is final or minimum tax, which cannot be refunded. That distinction is why filing matters: a filer who never files a return simply loses the adjustable amounts.
The Finance Act 2026 restructured the salary slabs into eight bands and removed the salary surcharge that applied in tax year 2026. Rates below apply where salary is more than half of your taxable income.
| Annual taxable salary | Rate on amount exceeding | Fixed tax (Rs) |
|---|---|---|
| Up to 600,000 | Nil | Nil |
| 600,001 – 1,200,000 | 1% | Nil |
| 1,200,001 – 2,200,000 | 11% | 6,000 |
| 2,200,001 – 3,200,000 | 20% | 116,000 |
| 3,200,001 – 4,100,000 | 25% | 316,000 |
| 4,100,001 – 5,600,000 | 29% | 541,000 |
| 5,600,001 – 7,000,000 | 32% | 976,000 |
| 7,000,000 and above | 35% | 1,424,000 |
Payment codes: federal government employees 64020001, provincial 64020002, corporate sector 64020003, others 64020004. Board of directors' meeting fees are taxed at 20% of the gross amount under section 149(3). Pension from a former employer is 0% up to Rs 10 million and 5% above that.
Filing for tax year 2026 instead? See our salary tax calculator for 2025-26, which uses the previous slab structure.
The Finance Act 2026 simplified property tax significantly. Section 236C, collected from the seller, is now a single flat rate regardless of value. Section 236K, collected from the buyer, is a flat rate for filers but remains slabbed for non-filers.
| Transaction | Property value | Filer | Non-filer |
|---|---|---|---|
| Sale (236C) | Any value | 2.75% | 11.5% |
| Purchase (236K) | Up to Rs 50 million | 1.25% | 10.5% |
| Purchase (236K) | Rs 50 – 100 million | 1.25% | 14.5% |
| Purchase (236K) | Above Rs 100 million | 1.25% | 18.5% |
Payment codes: 236C sale 64150301, 236K purchase 64151101. Non-filer rates shown apply to persons other than non-resident Pakistanis, who have a separate facility.
The single biggest number on this page. On a Rs 100 million property purchase, a filer pays Rs 1.25 million under 236K. A non-filer pays Rs 14.5 million — a difference of over Rs 13 million on one transaction. Filing a return costs a fraction of that. Overseas buyers should read our overseas Pakistani filing guide for the NICOP route.
| Transaction | Filer | Non-filer | Code |
|---|---|---|---|
| Interest on bank account (151) | 20% | 40% | 64040002 |
| National Savings Scheme (NSS) | 20% | 40% | 64040001 |
| Government bonds (individual) | 15% | 30% | 64040003 |
| Interest on company loans | 15% | 30% | 64040004 |
| Cash withdrawal over Rs 50,000/day (231AB) | Nil | 0.8% | 64100101 |
Note that cash withdrawal tax applies only to non-filers. A filer pays nothing on the same withdrawal, which for anyone regularly moving cash is on its own a reason to get on the ATL.
| Type of dividend | Filer | Non-filer |
|---|---|---|
| Cash dividend | 15% | 30% |
| Power generation companies | 7.5% | 15% |
| Mutual fund — stock fund | 15% | 30% |
| Mutual fund — money market / income fund | 25% | 50% |
| REIT, Modaraba or collective scheme | 15% | 30% |
Export rates are the same for filers and non-filers, and are treated as minimum tax. The concessional IT rate is the one freelancers and software houses care about most.
| Transaction | Rate | Code |
|---|---|---|
| Export of goods (minimum tax) | 1.25% | 64070054 |
| Computer software, IT and IT-enabled services (TY 2026–2029) | 0.25% | 64060286 |
| Other services rendered or exported from Pakistan | 1% | 64060288 |
| Social media platform revenue — resident (154B) | 5% filer / 10% non-filer | — |
| Payment | Company filer / non-filer | Individual & AOP filer / non-filer |
|---|---|---|
| Sale of goods (over Rs 75,000 a year) | 5% / 10% | 5.5% / 11% |
| Rice, cotton seed, edible oils | 1.5% / 3% | 1.5% / 3% |
| Toll manufacturing | 9% / 18% | 11% / 22% |
| Services (over Rs 30,000 a year) | 14% filer / 28% non-filer · code 64060180 | |
| Pharmaceutical distribution | 1% / 2% · code 64060002 | |
Advance tax on registration or sale, as a percentage of value. Non-filers pay three times the filer rate across every engine band.
| Engine capacity | Filer | Non-filer |
|---|---|---|
| Up to 850cc | 0.5% | 1.5% |
| 851 – 1000cc | 1% | 3% |
| 1001 – 1300cc | 1.5% | 4.5% |
| 1301 – 1600cc | 2% | 6% |
| 1601 – 1800cc | 3% | 9% |
| 1801 – 2000cc | 5% | 15% |
| 2001 – 2500cc | 7% | 21% |
| 2501 – 3000cc | 9% | 27% |
| Above 3000cc | 12% | 36% |
Vehicle leasing under 231B(1A) carries a 12% charge for non-filers and nothing for filers. Registration fee code 64100301, sale code 64100303.
| Transaction | Filer | Non-filer |
|---|---|---|
| Rent paid to a company (155) | 15% | 30% |
| Rent — individual/AOP, up to Rs 300,000 | Nil | — |
| Rent — individual/AOP, above Rs 2,000,000 | Rs 155,000 + 25% | Double |
| Advertising commission (233) | 10% | 20% |
| Other commissions (233) | 12% | 24% |
| Domestic electricity bill over Rs 25,000 (235) | Nil | 7.5% |
| Telephone and internet bills (236) | Nil | 15% |
| Prize bonds and crossword puzzles (156) | 15% | 30% |
| Raffle, lottery, quiz or promotion prize (156) | 20% | 40% |
| Petrol to pump operators (156A) | 12% | 24% |
Under section 236O, advance tax under this chapter is not collected from the federal and provincial governments, foreign diplomats and diplomatic missions, or holders of a valid withholding exemption certificate. If you qualify for an exemption certificate, obtaining one can materially improve your cash flow.
Look across every table on this page and one pattern repeats: the non-filer column is roughly double, and on property it is far worse. The Tenth Schedule to the Ordinance increases withholding rates by 100% for anyone not appearing on the Active Taxpayers List, and several charges — cash withdrawal, electricity, phone bills, vehicle leasing — apply only to non-filers.
Getting onto the ATL requires nothing more than filing your annual return. You can check your filer status by CNIC in about a minute, or read our guide on how to file an income tax return.
Withholding is where most compliance problems begin: the wrong rate deducted, the wrong payment code used, or a statement filed late. Filing.pk handles withholding statements, exemption certificates and annual returns for individuals and businesses, entirely online.
Keep this chart on your desk. Download the complete Filing.pk Withholding Tax Chart for TY 2027 (PDF) — 11 pages, subject-wise, with every FBR payment code. Free to download and share with your team or clients.
The rate card sets out every withholding tax rate applying in tax year 2027, effective 1 July 2026 under the Finance Act 2026. It covers salary, imports, dividends, interest, property, vehicles, services, rent, utilities and more, showing filer and non-filer rates alongside the FBR payment code for each transaction.
As a general rule the Tenth Schedule increases the rate by 100%, so non-filers pay double. On property purchases the gap is far larger: 1.25% for a filer against 10.5% to 18.5% for a non-filer. Some charges, such as the 0.8% cash withdrawal tax and 15% on phone bills, apply only to non-filers.
Under section 236C the seller pays a flat 2.75% if a filer and 11.5% if a non-filer. Under section 236K the buyer pays a flat 1.25% if a filer, while non-filers pay 10.5% up to Rs 50 million, 14.5% between Rs 50 and 100 million, and 18.5% above Rs 100 million.
There are eight slabs. Income up to Rs 600,000 is exempt, then 1%, 11%, 20%, 25%, 29%, 32% and finally 35% on income above Rs 7,000,000. The salary surcharge that applied in tax year 2026 was removed by the Finance Act 2026.
Export of computer software, IT services and IT-enabled services is taxed at a concessional 0.25% for tax years 2026 to 2029 under section 154A, the same for filers and non-filers. Other exported services are taxed at 1%, and revenue from social media platforms at 5% for filers and 10% for non-filers.
Adjustable withholding tax can be offset against your annual liability and any excess reclaimed as a refund when you file. Tax described as final or minimum cannot be refunded. This is why filing matters: without a return, adjustable amounts deducted during the year are simply lost.
Section 236O exempts the federal and provincial governments, foreign diplomats and diplomatic missions, and any person holding a valid withholding tax exemption certificate issued by the Commissioner.
Payment codes identify the exact nature of a transaction when tax is deposited with the FBR. Using the wrong code can misallocate your payment, delay credit against your account, and cause reconciliation problems in your return, so the correct code should be used on every challan.
Rates in this chart apply to tax year 2027 (1 July 2026 to 30 June 2027) in light of amendments made through the Finance Act 2026. This is general information, not tax advice. Rates and codes can change through SROs and circulars, so please verify on the official FBR site (fbr.gov.pk) or contact us about your own situation.