Withholding Tax Calculator 2025-26

Professional Withholding Agent Calculator Based on Official FBR Rates

Effective: 01.07.2025 to 30.06.2026

Select Withholding Tax Section

Choose the relevant tax section and provide required information for accurate calculation

Withholding Tax Sections

  • Section 149: Salary income taxation
  • Section 151: Profit on debt (savings, deposits)
  • Section 153: Goods & services supplies
  • Section 236A: Auction/tender transactions

Filer vs Non-Filer Rates

Filers enjoy significantly lower withholding tax rates compared to non-filers. Always verify ATL status on FBR portal before making payments.

Filer Rates: 1.5% - 15% Non-Filer Rates: 3% - 35%

Compliance Requirements

Withholding agents must deduct tax at source and deposit with FBR by the 15th of following month. Maintain proper records for 6 years.

Verification

Always verify taxpayer status at www.iris.fbr.gov.pk Active Taxpayers List (ATL) before applying withholding tax rates.

Frequently Asked Questions

1. What is Withholding Tax and who is a Withholding Agent?

Withholding tax is an advance tax collected at source by the withholding agent when making certain payments. Any person or organization making specified payments (salary, goods, services, contracts, etc.) is required to act as a withholding agent and deduct tax at source as per prescribed rates.

2. How to verify filer status before making payments?

Check the Active Taxpayers List (ATL) available at FBR's official website: www.iris.fbr.gov.pk. The list is updated regularly and should be verified at the time of each payment.

3. What is the due date for depositing withheld tax?

Withheld tax must be deposited with the FBR by the 15th day of the following month in which tax was deducted. Late payments attract penalties and additional taxes.

4. What records should withholding agents maintain?

Withholding agents must maintain proper records including payment vouchers, tax deduction certificates, and proof of deposit for at least 6 years from the end of the tax year.

5. Are there any exemptions from withholding tax?

Yes, certain payments and recipients may be exempt. Always refer to the latest FBR notifications and consult with a tax professional for specific exemptions applicable to your transactions.

Withholding Tax Calculator Pakistan (2025–26) – Rates, Meaning & Examples

 

Understanding withholding tax in Pakistan is essential for salaried individuals, business owners, freelancers, and companies. Withholding tax directly affects your income, banking transactions, utility bills, contracts, and many everyday payments.

The Government of Pakistan collects withholding tax under various sections of the Income Tax Ordinance, 2001, where tax is deducted at the source before payment is made. These deductions are adjusted later in your annual tax return.

CalculateMyTax.pk provides a Withholding Tax Calculator for Pakistan (FY 2025–26) that helps you estimate tax deductions accurately using official FBR withholding tax rates.

What Is Withholding Tax? (Meaning in Pakistan)

Withholding tax is a type of advance income tax deducted at the time of payment instead of being paid at the end of the year.

In simple terms:

Withholding tax means tax deducted at source by the payer and deposited with FBR on behalf of the taxpayer.

Examples:

  • Tax is deducted from salary.
  • Tax is deducted from the bank's profit.
  • Tax is deducted on cash withdrawal.
  • Tax is deducted on services, goods, or contracts.
  • Tax is deducted from utility bills and mobile services.

This system ensures regular tax collection and improves compliance.

How Withholding Tax Works in Pakistan

  1. A payment is made (salary, service fee, bank profit, bill, etc.)
  2. The payer deducts tax as per the applicable withholding tax rate.
  3. The deducted tax is deposited with FBR.
  4. The taxpayer receives a withholding tax certificate.
  5. The tax is adjusted when filing the annual return.

Withholding Tax Calculator – What This Tool Does

Our tax withholding calculator automatically:

  • Identifies the correct withholding tax section
  • Applies the latest FBR withholding tax rates (2025–26)
  • Differentiates between filer and non-filer
  • Calculates tax deducted at source
  • Helps estimate the adjustable vs the non-adjustable tax

This saves time and prevents calculation errors.

Major Types of Withholding Tax in Pakistan

1. Withholding Tax on Salary (Section 149)

Tax is deducted monthly from salaries based on annual income slabs.

You can also calculate salary deductions using our
Salary Tax Calculator Pakistan

2. Withholding Tax on Cash Withdrawal (Section 231A)

Applied when non-filers withdraw cash from banks.

  • Filers: 0%
  • Non-filers: 0.8% on cash withdrawals exceeding prescribed limits

This encourages taxpayers to stay on the Active Taxpayers List (ATL).

3. Withholding Tax on Bank Profit (Section 151)

Tax deducted on profit earned from:

  • Savings accounts
  • Fixed deposits
  • Term deposits
Filer 15%
Non-Filer 35%

4. Withholding Tax on Services & Contracts (Section 153)

Applied to payments for:

  • Professional services
  • IT & software services
  • Advertising
  • Transport, security, janitorial services
  • Contracts and works

Rates vary based on service type and filer status.

5. Withholding Tax on Utility & Telecom Bills

Includes tax deducted on:

  • PTCL bills
  • Mobile phone usage
  • Internet services
  • Electricity & gas connections

Users can later download withholding tax certificates from service providers.

Official Withholding Tax Rates (FY 2025–26)

Below are simplified withholding tax rates commonly used in Pakistan:

Withholding Tax on Salary (Section 149)

Note: 25% teacher/researcher rebate is not applicable from 01-07-2025.

What Is a Withholding Tax Certificate?

A withholding tax certificate is proof that tax has already been deducted and deposited with FBR.

It includes:

  • Amount paid
  • Tax deducted
  • NTN of the deductor
  • Tax year and section

These certificates are required for:

  • Filing income tax returns
  • Claiming tax adjustments
  • Bank loans & visa applications

Is Withholding Tax Adjustable or Refundable?

Adjustable Tax
Can be adjusted against your final tax liability
(e.g., salary tax, bank profit tax)

Non-Adjustable Tax
Final tax, not refundable
(e.g., certain mobile, utility, and transaction taxes)

Whether withholding tax is refundable depends on:

  • Your filer status
  • Nature of income
  • Relevant tax section

Difference Between Withholding Tax & Income Tax

Collected At source Annually
Paid by Deductor Taxpayer
Purpose Advance collection Final liability
Adjustment Yes / No (depends) Final settlement

Why Use CalculateMyTax.pk Withholding Tax Calculator?

Latest FBR withholding tax rates
Covers multiple tax sections
Filer vs non-filer comparison
Simple & accurate calculations
No registration required

For device-related deductions, you can also use our
PTA Tax Calculator

Calculate Withholding Tax Now

Tax laws in Pakistan change frequently. Manual calculations can result in overpayment or penalties.

Use the Withholding Tax Calculator Pakistan (2025–26) to:

  • Check correct tax deductions.
  • Verify bank or employer deductions.
  • Prepare for tax return filing.
This calculator provides estimates based on publicly available FBR rules. Final tax liability depends on individual circumstances.
Calculate Withholding Tax