# Tax on bank profit in Pakistan: filer and non-filer rates

URL: https://which.pk/money/guides/tax-on-bank-profit/
Author: Ahtisham Imtiaz
Updated: 15 Oct 2026

## Summary

For tax year 2027 (July 2026 to June 2027), banks deduct 20% tax on profit from filers and 40% from non-filers, as of FBR's Finance Act 2026 rate card. National Savings profit is taxed at 15% for filers and 30% for non-filers. For most individuals with profit on debt up to Rs 50 lakh a year, the deduction settles the tax. Non-filers also pay 0.8% on cash withdrawals above Rs 50,000 a day. You can check filer status by SMS to 9966.

## Key facts

- Bank profit, filer (TY2027): 20%
- Bank profit, non-filer (TY2027): 40%
- National Savings, filer / non-filer: 15% / 30%
- Cash withdrawal, non-filer: 0.8% above Rs 50,000 a day

The tax on bank profit in Pakistan is **20%** if you're a filer and **40%** if you're a non-filer, for tax year 2027 (1 July 2026 to 30 June 2027). Your bank deducts it when it pays the profit, as of FBR's rate card updated for the Finance Act 2026. Profit from National Savings is taxed at **15%** for filers and **30%** for non-filers.

**Rs 10 lakh at 10% a year:** Filer keeps Rs 80,000 · Non-filer keeps Rs 60,000 (Our arithmetic at the tax year 2027 rates: Rs 1 lakh gross profit, 20% or 40% deducted. Zakat, if deducted, comes off the profit first.)

## How much tax is deducted on bank profit for filers and non-filers?

The bank, or National Savings, deducts the tax from the gross profit at the time it pays you. "Filer" here means you are on FBR's **Active Taxpayer List** (ATL, the list of people who filed their return). The rates below are from FBR's tax year 2027 rate card, as of October 2026.

| Type of profit | Filer (on ATL) | Non-filer (not on ATL) |
|---|---|---|
| Bank or financial institution account or deposit | 20% | 40% |
| National Savings and Post Office savings | 15% | 30% |
| Government securities, paid to anyone other than an individual | 20% | 40% |

The non-filer rate is double because the Tenth Schedule of the Income Tax Ordinance raises withholding by 100% for anyone not on the ATL. FBR's card says the Ordinance wins if the two ever differ. Here they match: the Ordinance, amended up to the Finance Act 2026, sets the same 20% and 15% base rates.

If Zakat is deducted from your account, tax is worked out on the profit after Zakat.

## How much will I actually lose to tax?

These are our own sums at the tax year 2027 rates. The profit rates are examples, not offers.

**Bank savings account.** Rs 10 lakh earning 10% a year makes Rs 1 lakh of profit.

- Filer: Rs 20,000 tax, you keep **Rs 80,000**.
- Non-filer: Rs 40,000 tax, you keep **Rs 60,000**.

**Special Savings Certificates.** Rs 10 lakh at Rs 5,800 per Rs 1 lakh every six months (the rate from 1 October 2026) pays Rs 58,000 per six months.

- Filer: Rs 8,700 tax, you keep **Rs 49,300**.
- Non-filer: Rs 17,400 tax, you keep **Rs 40,600**.

Both are before any Zakat. For current rates by bank, see [savings account profit rates](/money/guides/savings-account-profit-rates/). For the certificates themselves, see [National Savings certificates](/money/guides/national-savings-certificates/).

## What is the tax on National Savings profit?

**15%** for filers and **30%** for non-filers. National Savings' own page for Special Savings Certificates says this applies "irrespective of date of investment and amount/profit", and that Zakat is collected at source. The page was last updated on 26 August 2025.

Profit (Pakistan Today) reported on 1 July 2025 that National Savings applied these rates from that date under the Finance Act 2025. Unlike bank deposits, the filer rate on National Savings did not rise: it stayed at 15%.

Some National Savings products have their own tax rules. We didn't recheck those exemptions for this guide, so confirm with National Savings before you invest.

## How has the tax on bank profit changed since 2024-25?

| Tax year | Period | Bank deposits, filer / non-filer | National Savings, filer / non-filer |
|---|---|---|---|
| 2025 | July 2024 to June 2025 | 15% / 35% | 15% / 35% |
| 2026 | July 2025 to June 2026 | 20% / 40% | 15% / 30% |
| 2027 | July 2026 to June 2027 | 20% / 40% | 15% / 30% |

Before the Finance Act 2025, section 151 had a single 15% rate, and non-filers paid a flat 35%. The Finance Act 2025 raised the bank deposit rate to 20%, removed the flat 35% non-filer rate and replaced it with double the filer rate. The Finance Act 2026 did not change these rates, according to the amended Ordinance and KPMG's brief of the Finance Act 2026.

Some websites say non-filers paid 30% in tax year 2025. FBR's tax year 2025 rate card and the Ordinance both show 35%, so we follow FBR.

## Is tax on bank profit a final tax?

For most individuals, yes. If you are not a company and your total profit on debt is **up to Rs 50 lakh** (Rs 5 million) a year, section 7B taxes that profit separately, at the same 20% (bank deposits) or 15% (other cases). The tax your bank already deducted normally covers it.

Above Rs 50 lakh, section 7B no longer applies. The deduction then counts as a **minimum tax**, and the profit is taxed with the rest of your income. KPMG's Finance Act 2026 brief summarises it the same way for individuals: "Final / Minimum (if more than Rs. 5 million)". For companies, KPMG lists it as adjustable.

**What we couldn't confirm:** The law doubles the deduction for non-filers but taxes the profit at 20% under section 7B. We found no FBR source that says whether a non-filer can get back the extra 20% by filing a return later. Ask a tax adviser before counting on a refund.

## How much tax do non-filers pay on cash withdrawal?

Under section 231AB, banks deduct **0.8%** advance tax from people not on the ATL when their cash withdrawals in a day add up to more than **Rs 50,000**. All withdrawals in one day, from all accounts, are added together. Filers pay nothing. The rate was 0.6% until the Finance Act 2025 raised it.

For example, a non-filer who withdraws Rs 2 lakh in cash in one day pays **Rs 1,600**, if the 0.8% applies to the whole day's total, which is how the law is commonly read. We found no FBR clarification on whether it applies only to the part above Rs 50,000.

In June 2025, Profit reported that the government planned to raise the threshold to Rs 75,000. The Ordinance as amended to the Finance Act 2026 and KPMG's brief both still say Rs 50,000, so we follow the law.

The law calls it "advance adjustable tax".

## How do I check if I am a filer?

If you aren't on the list, see [how to become a filer](/business/guides/how-to-become-filer/). For what else the status changes, see [filer vs non-filer](/business/guides/filer-vs-non-filer/).

## How do I get a tax deduction certificate from my bank?

Banks call it a withholding tax certificate. We confirmed the steps for two banks:

- **MCB:** in the MCB Live app, go to Dashboard > Menu > Certificates > Withholding Tax Certificate and download it.
- **Bank AL Habib:** request a "With Holding Tax/Balance Certificate" from the certificates section of AL Habib Netbanking or the mobile app. The bank says it emails it to your registered address within 30 minutes.

We couldn't confirm the steps for HBL, UBL, Meezan Bank or Allied Bank. Check your bank's app under certificates or statements, or ask at your branch.

More guides: [how to file an income tax return](/business/guides/how-to-file-income-tax-return/), [how to check filer status](/business/guides/how-to-check-filer-status/), [investment options in Pakistan](/money/guides/investment-options-pakistan/), [Money](/money/).

## Questions people ask

### What is the tax on bank profit for non-filers?

For tax year 2027 (July 2026 to June 2027), banks deduct 40% of the profit on deposits from people not on FBR's Active Taxpayer List, double the 20% filer rate. On National Savings it is 30%, against 15% for filers.

### Is tax on bank profit a final tax?

For an individual whose profit on debt is up to Rs 50 lakh in a year, the law taxes that profit separately at the same 20% or 15% rate, so the deduction normally settles it. Above Rs 50 lakh, the deduction is a minimum tax and the profit is taxed with the rest of your income.

### What was the tax on bank profit in 2024-25 and 2025-26?

In tax year 2025 (July 2024 to June 2025) it was 15% for filers and 35% for non-filers on both bank and National Savings profit. Finance Act 2025 raised bank deposit profit to 20% for filers and 40% for non-filers from tax year 2026, and Finance Act 2026 kept those rates.

### How do I check if I am a filer?

Send 'ATL', a space and your 13-digit CNIC by SMS to 9966. Companies and AOPs send 'ATL', a space and their 7-digit NTN.

### How much tax do non-filers pay on cash withdrawal?

Banks deduct 0.8% advance tax from people not on the Active Taxpayer List when their cash withdrawals in a day total more than Rs 50,000, as of the Finance Act 2026. Filers pay nothing.

## Sources

- [Withholding Income Tax Rate Card, tax year 2027 (updated up to 30 June 2026 as per Finance Act 2026)](https://download1.fbr.gov.pk/Docs/202681113864992WithholdingTaxRatesCard2027.pdf), FBR (accessed 15 Oct 2026)
- [Income Tax Ordinance, 2001 (amended up to Finance Act 2026)](https://download1.fbr.gov.pk/Docs/2026724177725705IncomeTaxOrdinanace2001.pdf), FBR (accessed 15 Oct 2026)
- [Withholding Income Tax Rate Card, tax year 2026 (updated up to 30 June 2025 as per Finance Act 2025)](http://download1.fbr.gov.pk/Docs/20258181281745641WHT-RateCard.pdf), FBR (accessed 15 Oct 2026)
- [Withholding Income Tax Regime (WHT Rates Card) as per Finance Act 2024 (tax year 2025)](https://download1.fbr.gov.pk/Docs/20248211184455183WithholdingTaxRegimeRatesCard2024.pdf), FBR (accessed 15 Oct 2026)
- [Withholding Tax Rate Cards](https://fbr.gov.pk/withholding-taxes-rate-card/174298/174301), FBR (accessed 15 Oct 2026)
- [Active Taxpayer List (ATL): check active taxpayer status](https://fbr.gov.pk/categ/check-active-taxpayer-status/51147/30859/71169), FBR (accessed 15 Oct 2026)
- [Special Savings Certificates](https://savings.gov.pk/special-savings-certificates/), Central Directorate of National Savings (accessed 15 Oct 2026)
- [A Brief of Finance Act, 2026](https://assets.kpmg.com/content/dam/kpmgsites/pk/pdf/2026/07/A%20Brief%20of%20Finance%20Act%202026.pdf.coredownload.inline.pdf), KPMG Taseer Hadi & Co. (accessed 15 Oct 2026)
- [CDNS revises withholding tax rates for National Savings Schemes under new Finance Act](https://profit.pakistantoday.com.pk/2025/07/01/cdns-revises-withholding-tax-rates-for-national-savings-schemes-under-new-finance-act), Profit (Pakistan Today) (accessed 15 Oct 2026)
- [MCB Live FAQs](https://www.mcb.com.pk/faqs/mcb-live-faqs), MCB Bank (accessed 15 Oct 2026)
- [Netbanking FAQs](https://www.bankalhabib.com/netbanking), Bank AL Habib (accessed 15 Oct 2026)