Investments · Section 150 · Tax Year 2026-2027
Dividend Tax Calculator
See the withholding tax deducted from your dividend income under Section 150 — 15% for filers, 30% for non-filers.
Step by step
How dividend withholding works
Enter the dividend amount
The gross dividend declared or paid to you, before any deduction.
Choose your filer status
Filers (on the FBR Active Taxpayers List) pay 15%; non-filers pay 30%.
See the tax withheld
The company or fund deducts this amount before paying you the balance.
Check your net dividend
What actually lands in your account after withholding.
Good to know
Dividend tax essentials
Deducted at source
You never need to pay this yourself — the paying company or fund withholds it before the dividend reaches you.
Usually a final tax
For most individuals this is the final tax on dividend income, not merged with your other income at slab rates.
Filing pays off
Being an active filer halves your dividend tax rate compared to a non-filer.
Reading the result
The company deducts before it pays
A dividend is announced gross and lands net. The company or its registrar withholds the tax and deposits it against your CNIC, which is why the credit in your account never matches the per-share figure in the announcement.
Investors comparing a dividend yield against a bank profit rate are comparing a gross number with a net one unless they adjust for this first.
Check the rate on the CDC statement, not the announcement
Your filer status is read on the date of payment. Someone who filed a return but has not yet appeared on the Active Taxpayer List can still be deducted at the higher rate for a dividend paid in that window — the list, not the return, is what the registrar checks.
That is worth watching before a known payout date if you have recently started filing.
Keep the certificate even when the tax is final
Where the deduction discharges your liability on that income, you still declare the dividend and the tax in your return. Leaving it out creates a gap between your declared income and the wealth it produced, which is exactly the mismatch a wealth reconciliation is meant to explain.
The wealth statement reconciliation calculator covers that side.
Where this stops
This applies a rate to a dividend amount. It does not cover the separate treatment of a company receiving dividends, or of distributions from funds and REITs, which follow their own provisions.
FAQs
Dividend tax FAQs
What is the withholding tax rate on dividends?
Under Section 150 of the Income Tax Ordinance, dividend income is subject to withholding tax at 15% for filers and 30% for non-filers (double the filer rate), deducted by the company or fund at the time of payment.
Is this tax final, or can I claim it back?
For most individuals, dividend withholding tax is a final tax — it is not added to your other income and is not adjustable against your income tax liability. Some categories (e.g. certain companies) may have different treatment; check with a tax advisor.
Does the rate differ by company type?
Some sectors (e.g. independent power producers, or dividends out of profits already taxed at the corporate level in specific ways) can have different notified rates. This calculator uses the standard 15%/30% rate — verify your specific case against the current Finance Act.
Why is the non-filer rate so much higher?
The higher non-filer rate is designed to encourage tax return filing and being on the FBR Active Taxpayers List (ATL) — filing a return, even with no tax due, can qualify you for the lower filer rate.
Related tools
Compare with other investment income
Profit on debt, mutual funds and securities gains all have their own withholding rates.
Open Profit on Debt Calculator