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Pakistan Freelancer Tax Calculator

USD earnings to PKR after fees and tax.

Estimate what actually reaches your bank from freelance income paid in dollars: platform fee, withdrawal fees, conversion at your bank's rate, and the final tax on IT export remittances — 0.25% if you're registered with PSEB, 1% if you're not.

How to use

  1. Enter your monthly gross income in USD.
  2. Enter your platform and withdrawal fees.
  3. Enter the USD to PKR rate you receive.
  4. Choose your tax rate and read the estimated net income.

Example

$1,000 on a platform charging 20%, with a $3 withdrawal fee, leaves $797. At Rs 280 per dollar that's Rs 223,160; tax at 0.25% is Rs 558, leaving about Rs 222,602 before your own expenses.

PSEB registration and the 0.25% rate

Pakistan taxes qualifying IT and IT-enabled export income through a final tax withheld by the bank when the remittance arrives. Budget 2026-27 kept the reduced 0.25% rate for PSEB-registered freelancers and companies until 30 June 2029, while unregistered exporters generally pay 1%. Conditions — receiving money through banking channels and filing your return — still apply.

Because it's a final tax, business expenses don't reduce it. The expenses field is there so you can see your real monthly take-home.

Good to know

  • The exchange rate is not stored because it changes daily — use your bank's actual rate.
  • Filing a tax return keeps you on the Active Taxpayer List, which affects other withholding rates.

Frequently asked questions

Do freelancers in Pakistan pay tax?

Yes. Qualifying IT export income received through banks is taxed at a reduced final rate: 0.25% with PSEB registration or 1% without, subject to conditions.

How do I register with PSEB?

Through the Pakistan Software Export Board's online portal at pseb.org.pk. Registration is renewed annually.

Is this tax advice?

No. It's an estimate for information. Confirm your situation with a tax adviser or FBR.