When we withdraw cash from a bank, the bank deducts a specific amount from that withdrawal. This deducted amount is the withholding tax charged by the FBR on cash withdrawals from banks. This tax applies only to non-filers.

Calculate your exact deductions instantly on salary using our Salary Income Tax Calculator for Pakistan.

Latest 2026 Cash Withdrawal Tax Rates (FBR Updated)

Category	Daily Limit (Tax-Free)	Tax Rate	Who Pays
Filer (ATL)	Rs. 75,000	0%	No tax on cash withdrawals
Non-Filer	Rs. 75,000	0.8% on the excess amount	Pays tax above threshold

How to Use Withholding Tax Calculator

To get the most accurate results from the Cash Withdrawal Withholding Tax Calculator, follow these simple steps:

• Enter the Gross Amount: Input the total amount of cash you intend to withdraw from the bank or ATM in the “Withdrawal Amount” field.

• Select Your Filer Status: Choose whether you are a Filer (Active Taxpayer) or Non-Filer. Remember, in Pakistan, filers are currently exempt from this tax, while non-filers are charged only if their total daily withdrawal exceeds Rs. 75,000.

• Choose the Tax Year: Select the relevant tax year (e.g., 2025-2026) to ensure the calculator applies the correct percentage (0.8% for the current year versus 0.6% for previous years) before clicking Calculate.

Section 231A

The current tax rate on cash withdrawals from an ATM or directly from a bank is 0.8% for non-filers on amounts exceeding Rs. 75,000.

Previously, it was 0.6% for non-filers on amounts exceeding Rs. 50,000. However, from July 1, 2025, the above rate applies.

The Formula for 2026

In Pakistan, this applies specifically to Non-Filers when their cash withdrawal exceeds the Rs. 75,000 threshold.

The Mathematical Formula:

Tax Amount = Total Withdrawal × Tax Rate

• For 2025–2026: The rate is 0.8% (0.008)
• For 2024–2025: The rate was 0.6% (0.006)
• Threshold: If the amount is ≤ Rs. 75,000, the tax amount is 0

Practical Example:

Let’s look at a real-world scenario for a Non-Filer withdrawing cash in the current tax year.

Scenario:

A Non-Filer withdraws Rs. 100,000 from their bank account.

Step-by-Step Calculation:

Step 1: Check Threshold
Is 100,000 > 75,000?
→ Yes (Tax applies)

Step 2: Apply Tax Rate
100,000 × 0.008 = Rs. 800

Step 3: Net Amount
100,000 – 800 = Rs. 99,200

Outcome

The bank will deduct Rs. 800 as withholding tax, and the person will receive a net amount of Rs. 99,200.

Benefits

Free

You don’t have to pay a single penny to calculate withholding tax. We developed this tool at no cost to help salaried individuals, business owners, and anyone who withdraws money regularly (weekly or monthly).

Accurate

Fast Tax Calculator built this tool using the latest tax information, so you can rely on its accuracy.

Helps Avoid Unnecessary Bank Charges

You don’t need to open your banking app every time to check how much tax is being charged. Simply enter the amount you want to withdraw, and the tool will show you the exact tax amount.