Dividend Tax Calculator Pakistan 2026-27
Work out the tax deducted from a dividend on shares, mutual funds and REITs in 2026-27: 15% for filers, 25% on the debt part of a fund, double for non-filers.
On a Rs 100,000 dividend, 15% is deducted: Rs 15,000 in tax, and Rs 85,000 reaches you. For an individual it is the final tax on this dividend.
- You receive 85%
- Tax 15%
The same dividend from each source
| Paid by | Filer | Tax | Non-filer | Tax |
|---|---|---|---|---|
| Shares of a listed company You are here | 15% | Rs 15,000 | 30% | Rs 30,000 |
| Mutual fund (100% equity) | 15% | Rs 15,000 | 30% | Rs 30,000 |
| REIT | 15% | Rs 15,000 | 30% | Rs 30,000 |
| Power producer (IPP), pass-through | 7.5% | Rs 7,500 | 15% | Rs 15,000 |
| Company that paid no tax (exemption or losses) | 25% | Rs 25,000 | 50% | Rs 50,000 |
How dividend tax works in Pakistan
When a company or a mutual fund pays you a dividend, it deducts income tax first and sends you the rest. The rate depends on who pays the dividend and on whether you are on FBR’s Active Taxpayers List. The rates are in Division III of Part I of the First Schedule to the Income Tax Ordinance. The Finance Act 2026 did not change them, so they apply in 2026-27 (tax year 2027).
| Dividend paid by | Filer | Non-filer |
|---|---|---|
| Listed company (general rate) | 15% | 30% |
| REIT | 15% | 30% |
| Mutual fund, part of its income from shares | 15% | 30% |
| Mutual fund, part of its income from debt (bank deposits, T-bills, sukuk) | 25% | 50% |
| Company that paid no tax because of an exemption, past losses or tax credits | 25% | 50% |
| Power producer (IPP), when the dividend is a pass-through item under its power purchase agreement | 7.5% | 15% |
The non-filer column comes from rule 1 of the Tenth Schedule, which raises any tax deducted at source by 100% for people not on the Active Taxpayers List.
Why does a money market fund dividend lose more to tax?
Since the Finance Act 2025, a mutual fund’s dividend is taxed by where the fund’s income came from. The part earned from shares is taxed at 15%, and the part earned from debt, such as bank deposits, treasury bills and sukuk, at 25%. A money market or income fund earns almost all of its income from debt, so close to 25% is deducted. An equity fund earns from shares, so close to 15%. The fund’s dividend notice or its fund manager report shows the split. Enter it in the calculator. If you do not know it, use 0% for a money market fund and 100% for an equity fund.
Is dividend tax the final tax?
For an individual, yes. Dividend tax is charged under section 5 of the Ordinance, separately from your salary or business income, and the amount deducted under section 150 settles it. You still show the dividend and the tax deducted in your income tax return. A company that receives dividends from a debt fund pays 29% on the debt part instead of 25%.
What the calculator does not cover
- Zakat, a separate deduction under the Zakat and Ushr Ordinance 1980, which a declaration (CZ-50) can exempt you from.
- Dividends a REIT scheme receives from its special purpose vehicles, and dividends paid to others by such vehicles (35%).
- Capital gains tax when you sell shares or fund units, which is a different tax. See how to invest in the PSX for those rates.
- Bonus shares and dividends to companies, which follow other rules.
Common questions
What is the tax on dividends in Pakistan in 2026-27?
15% for filers on dividends from listed companies and REITs. Mutual fund dividends are taxed at 15% on the part the fund earned from shares and 25% on the part it earned from debt. A dividend from a company that paid no tax because of an exemption or past losses is taxed at 25%. People not on the Active Taxpayers List pay double each of these rates.
What is the dividend tax for non-filers?
Double the filer rate: 30% on dividends from listed companies and REITs, and up to 50% on the debt part of a mutual fund’s dividend. The increase comes from the Tenth Schedule of the Income Tax Ordinance. On a Rs 100,000 dividend from shares, a filer pays Rs 15,000 and a non-filer Rs 30,000. The steps to get on the list are in filer vs non-filer.
Is DCR dividend taxed?
Yes. Dolmen City REIT’s payouts are dividends from a REIT, so 15% is deducted for filers and 30% for non-filers before the money reaches you. For an individual that deduction is the final tax on the payout, though you still show it in your return. Our real estate vs DCR comparison shows what this does to the return.
Sources
- Income Tax Ordinance 2001, sections 5 and 150, First Schedule Part I Division III and Part III Division I, Tenth Schedule rule 1.
- Finance Act 2026 (no change to these rates).
Checked 22 October 2026.