Withholding tax rates for 2026
The rates deducted at source on salary, dividends, bank profit, contracts, services, property and vehicles for tax year 2026, with the filer and non-filer figures side by side.
- 149Salary
- Filer
- Per salary slabs
- Non-filer
- Per salary slabs
Deducted by the employer each month against the annual slab rate. Filing status does not change it.
- 150Dividend from a company
- Filer
- 15%
- Non-filer
- 30%
Rate varies for IPP shares and mutual funds. Non-filers pay double.
- 151Profit on debt (bank profit, savings)
- Filer
- 15%
- Non-filer
- 35%
Deducted by the bank on your profit or interest income.
- 152Payments to non-residents
- Filer
- Varies by nature
- Non-filer
- Higher rate applies
Royalty, fee for technical services and contracts each carry their own rate.
- 153(1)(a)Supply of goods
- Filer
- 5.5% company, 6% other
- Non-filer
- Double the filer rate
Withheld by the buyer on every invoice for goods.
- 153(1)(b)Services rendered
- Filer
- 11% (15% for specified)
- Non-filer
- Double the filer rate
Withheld by the client on service invoices. Reduced rates apply to certain sectors.
- 153(1)(c)Execution of a contract
- Filer
- 8% company, 8% other
- Non-filer
- Double the filer rate
Applies to construction and works contracts.
- 155Rent of immovable property
- Filer
- Per rent slabs
- Non-filer
- Higher slab rate
Deducted by the tenant where the tenant is a withholding agent.
- 231ABCash withdrawal from bank
- Filer
- Nil
- Non-filer
- 0.6%
Applies to cash withdrawals above Rs 50,000 in a day by a non-filer.
- 234Motor vehicle token tax
- Filer
- Per engine capacity
- Non-filer
- Double the filer rate
Collected with your annual token, by engine capacity or value.
- 236Telephone and internet bills
- Filer
- 15%
- Non-filer
- 15%
Advance tax on your mobile and internet bill, adjustable in your return.
- 236CSale or transfer of property
- Filer
- 4.5% to 5.5%
- Non-filer
- 11.5%
Collected from the seller at the time of registering the transfer.
- 236KPurchase of property
- Filer
- 1.5% to 2.5%
- Non-filer
- 10.5% to 18.5%
Collected from the buyer. The single biggest cost of being a non-filer.
| Section | Applies to | Filer | Non-filer | Notes |
|---|---|---|---|---|
| 149 | Salary | Per salary slabs | Per salary slabs | Deducted by the employer each month against the annual slab rate. Filing status does not change it. |
| 150 | Dividend from a company | 15% | 30% | Rate varies for IPP shares and mutual funds. Non-filers pay double. |
| 151 | Profit on debt (bank profit, savings) | 15% | 35% | Deducted by the bank on your profit or interest income. |
| 152 | Payments to non-residents | Varies by nature | Higher rate applies | Royalty, fee for technical services and contracts each carry their own rate. |
| 153(1)(a) | Supply of goods | 5.5% company, 6% other | Double the filer rate | Withheld by the buyer on every invoice for goods. |
| 153(1)(b) | Services rendered | 11% (15% for specified) | Double the filer rate | Withheld by the client on service invoices. Reduced rates apply to certain sectors. |
| 153(1)(c) | Execution of a contract | 8% company, 8% other | Double the filer rate | Applies to construction and works contracts. |
| 155 | Rent of immovable property | Per rent slabs | Higher slab rate | Deducted by the tenant where the tenant is a withholding agent. |
| 231AB | Cash withdrawal from bank | Nil | 0.6% | Applies to cash withdrawals above Rs 50,000 in a day by a non-filer. |
| 234 | Motor vehicle token tax | Per engine capacity | Double the filer rate | Collected with your annual token, by engine capacity or value. |
| 236 | Telephone and internet bills | 15% | 15% | Advance tax on your mobile and internet bill, adjustable in your return. |
| 236C | Sale or transfer of property | 4.5% to 5.5% | 11.5% | Collected from the seller at the time of registering the transfer. |
| 236K | Purchase of property | 1.5% to 2.5% | 10.5% to 18.5% | Collected from the buyer. The single biggest cost of being a non-filer. |
Rates change with each Finance Act and several sections carry sector-specific variations. Confirm the rate for your exact transaction before you invoice or deduct.
Common questions
- What is withholding tax in Pakistan?
- Withholding tax is income tax collected at source by the person paying you, such as your employer, your bank or your client, and deposited against your name. It is adjustable against your annual liability when you file a return.
- Why do non-filers pay double?
- The law prescribes higher withholding rates for people not on the Active Taxpayers List, as a deliberate cost of staying outside the tax net. On property and vehicles the difference is several times the filer rate.
- Can I get withholding tax back?
- Where the tax withheld exceeds your actual liability the excess is refundable, but only through a filed return followed by a refund application. Without filing, the money simply stays with the department.
- Can I reduce the rate applied to my payments?
- Yes. A contractor whose withholding regularly exceeds the actual liability can apply to the Commissioner for a reduced rate or exemption certificate, which the paying party is then required to honour.
Want us to handle it instead?
A calculator gives you the number. Filing it correctly, on time, and defending it if the FBR asks questions is the part we do.