Withholding tax is income tax the payer cuts from a payment and deposits with the FBR on the payee's behalf. For 2026-27, a payment for general services to someone on the ATL has 14% deducted, IT services 4%, goods supplied by a company 5% and a contract with an individual 8%. For a payee not on the Active Taxpayers List most of these rates double.
Choose the payment above to see the deduction, the net amount and the rate that would apply to a non-filer. The rates come from the FBR withholding rate card updated to 30 June 2026 under Finance Act 2026, for tax year 2027 (1 July 2026 to 30 June 2027).
Withholding tax rate card 2026-27
Rates for the payments in the calculator. "On ATL" means the payee appears on the FBR's Active Taxpayers List on the date of payment.
| Section | Payment | On ATL | Not on ATL | Nature |
|---|---|---|---|---|
| 153(1)(a) | Goods supplied by a company | 5% | 10% | Minimum |
| 153(1)(a) | Goods supplied by an individual or AOP | 5.5% | 11% | Minimum |
| 153(1)(a) | Rice, cotton seed or edible oils | 1.5% | 3% | Minimum |
| 153(1)(a) | Toll manufacturing, company | 9% | 18% | Minimum |
| 153(1)(a) | Toll manufacturing, individual or AOP | 11% | 22% | Minimum |
| 153(1)(b) | Listed services (transport, courier, hotel, security, car rental, training and others) | 7% | 14% | Minimum |
| 153(1)(b) | IT and IT enabled services | 4% | 8% | Minimum |
| 153(1)(b) | Independent professionals (doctor, lawyer, architect, accountant, software developer) | 15% | 30% | Minimum |
| 153(1)(b) | Advertising by electronic or print media | 1.5% | 3% | Minimum |
| 153(1)(b) | Terminal and port operating services by a company | 12% | 24% | Minimum |
| 153(1)(b) | Any other service | 14% | 28% | Minimum |
| 153(1)(c) | Contract executed by a company | 7.5% | 15% | Minimum |
| 153(1)(c) | Contract executed by an individual or AOP | 8% | 16% | Minimum |
| 153(1)(c) | Contract with a sportsperson | 15% | 30% | Minimum |
| 155 | Rent paid to an individual or AOP (yearly rent) | Slab rates | Slab rates doubled | Adjustable |
| 155 | Rent paid to a company | 15% | 30% | Adjustable |
| 149 | Salary (yearly taxable salary) | Slab rates | Same slab rates | Adjustable |
| 233 | Commission to an advertising agent | 10% | 20% | Minimum |
| 233 | Life insurance agent earning under Rs 0.5 million a year | 8% | 16% | Minimum |
| 233 | Any other commission or brokerage | 12% | 24% | Minimum |
| 153(2A) | Online sale paid by card, wallet or bank | 1% | 2% | Final |
| 153(2A) | Online sale paid cash on delivery | 2% | 4% | Final |
| 154A | IT or IT enabled export, PSEB registered | 0.25% | 0.25% | Final |
| 154A | Export of services, any other case | 1% | 1% | Final |
| 154 | Export of goods (proceeds realised) | 1.25% | 1.25% | Minimum |
| 154B | Income from YouTube, Facebook, TikTok and other platforms | 5% | 10% | Minimum |
| 236K | Buying property (fair market value) | 1.25% | 10.5% / 14.5% / 18.5% | Adjustable |
| 236C | Selling property (gross sale price) | 2.75% | 11.5% | Depends |
| 231B(1) | Registering a new car (value by engine size) | 0.5% to 12% | 1.5% to 36% | Adjustable |
| 236A | Buying goods at a public auction | 10% | 20% | Adjustable |
| 236A | Buying property at a public auction | 5% | 10% | Adjustable |
| 231AB | Cash withdrawn in one day from all banks | Nil | 0.8% (above Rs 50,000) | Adjustable |
| 235 | Home electricity bill for the month | Nil | 7.5% (from Rs 25,000) | Depends |
| 236CB | Wedding hall or function bill | 10% | 20% | Adjustable |
| 236Y | Paying abroad with a debit, credit or prepaid card | 0.5% | 1% | Adjustable |
| 236 | Mobile load, prepaid card or internet bill | 15% | 15% | Adjustable |
The full card has more sections, such as imports and payments to non-residents, which this calculator leaves out.
How to calculate withholding tax
- Find the section. The kind of payment decides it: goods fall under section 153(1)(a), services under 153(1)(b), contracts under 153(1)(c), rent under 155 and commission under 233.
- Check the payee's ATL status on the FBR website or by SMS on the day you pay. Rule 1 of the Tenth Schedule raises the rate by 100% for anyone not on the list. Vehicle registration under section 231B is raised by 200%.
- Apply the rate to the gross amount payable, before the deduction.
- Deposit the tax through a payment slip and file the monthly withholding statement.
Worked example: an IT firm's invoice
A company pays a software house Rs 1,000,000 for IT services. The software house is on the ATL.
- Rate for IT and IT enabled services: 4%
- Tax: 1,000,000 × 4% = Rs 40,000
- Paid to the software house: Rs 960,000
If the software house were off the ATL, the rate would be 8% and Rs 80,000 would be deducted.
Worked example: goods from a trader
A factory buys goods worth Rs 2,000,000 from a sole trader on the ATL. The rate for an individual or AOP is 5.5%, so Rs 110,000 is deducted. A non-filer trader would lose Rs 220,000.
Minimum, adjustable and final tax
The calculator shows the nature of each deduction, because it decides what happens when you file your return.
- Minimum tax. Most deductions on supplies, services, contracts and commission are minimum tax. Your final liability on that income cannot be lower than what was deducted, so the excess is not refunded.
- Adjustable. Rent, salary, cash withdrawal, property and vehicle collections count against your tax for the year. If more was taken than you owe, you can claim a refund.
- Final. Tax on IT and service exports under section 154A, and on most online sales under section 6A, settles the tax on that income. Finance Act 2026 made the e-commerce deduction adjustable for sellers whose turnover passes Rs 200 million.
The nature column follows KPMG's rate card for tax year 2027. Some entries carry conditions, for example a manufacturer or listed company selling goods can adjust the deduction instead of treating it as minimum.
What changed in 2026-27
Finance Act 2026 reshaped the services rates. Independent professionals such as doctors, lawyers, architects, accountants and software developers working on their own now have their own line at 15%. The general rate for other services fell from 15% to 14%, and the rate for listed services such as transport, courier, security and car rental rose to 7%.
Property rates were cut and flattened: 2.75% on a sale under section 236C and 1.25% on a purchase under section 236K for people on the ATL. The 0.25% rate for PSEB registered IT exporters was extended to tax year 2029. Rent slabs and the 0.8% cash withdrawal rate stayed as they were.
For related tools see the rental income tax calculator, the salary tax calculator and the property transfer tax calculator.
This is a calculator, not FBR advice. The FBR's own card says the Income Tax Ordinance prevails over any summary. Exemption certificates, reduced rate certificates and special cases change the figure, so check the payee's certificate before you pay.
Withholding tax questions
What is withholding tax in Pakistan?
It is income tax deducted at source. The person making a payment, such as a company paying a supplier or a tenant paying rent, keeps part of the payment and deposits it with the FBR in the payee's name. The payee then shows it in their return, where it is adjusted or treated as minimum or final tax.
What is the withholding tax rate on services for 2026-27?
14% of the gross amount for most services if the provider is on the ATL, and 28% if not. IT and IT enabled services are 4%, listed services such as transport, courier and security 7%, and independent professionals like doctors and lawyers 15%. Advertising by print or electronic media is 1.5%.
How much withholding tax is deducted from a non-filer?
Usually double the ATL rate. Rule 1 of the Tenth Schedule adds 100% for anyone not on the Active Taxpayers List. Some sections are excluded, such as salary, exports and mobile load, and vehicle registration tax is tripled instead. The non-filer tax calculator compares both on common deals.
Is withholding tax on supplies minimum or final?
It is minimum tax for most suppliers in 2026-27. The tax deducted under section 153(1)(a) is the least you pay on that income. A manufacturer or listed company can treat it as adjustable, subject to conditions in the Ordinance.
Can withholding tax be refunded?
Only when it is adjustable. Adjustable deductions, such as those on rent, salary, cash withdrawal, property and vehicles, count against the tax on your return, and any excess can be claimed back. Minimum tax is not refunded even if your return shows less tax. Final tax settles the income it was taken from, so there is nothing to adjust.
Related tools
Last reviewed 30 September 2026. Results are estimates; official notices always take precedence.