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

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.

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.

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. For the certificates themselves, see 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?

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.

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. For what else the status changes, see 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, how to check filer status, investment options in Pakistan, Money.