Freelancer Tax Calculator Pakistan (2025–2026)
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| Tax Type | – | Tax Type | – |
| Tax Payable | – | Tax Payable | – |
| Income After Tax | – | Income After Tax | – |
Freelancer Tax Rules – Pakistan FY 2025–26
If you are a freelancer in Pakistan, this guide is for you! Whether you work on Upwork, Fiverr, or make money online as a remote developer, designer, or writer, you have to pay tax on your income. But don't worry — in this article, we will explain everything in a simple way. This guide covers Pakistan's freelance tax laws for 2025–2026 and includes who pays how much tax, tax slabs, and special tax discounts. We’ll also add two helpful tables to make things super clear!
Who Has to Pay Tax?
If you are earning money from other countries and receiving it through a bank in Pakistan, you must pay tax. The government wants to make sure all online income is legal and properly recorded. There are three main types of freelancers in Pakistan for tax purposes:
Freelancer Types and Tax Rates in Pakistan (2025–26)
| Freelancer Type | Tax Rate | Conditions |
|---|---|---|
| PSEB Registered IT/ITES Exporters | 0.25% Final Tax | Must be registered with PSEB. Income should be received via bank. Must file tax return and withholding proof. |
| Not Registered with PSEB | 1% Final Tax | Export income via bank. Must file tax return. PRC and correct export code required. |
| Non-Compliant or No Export Proof | Full Income Tax Slabs | No PRC or income from unofficial channels. No tax return filed. |
What is PSEB?
PSEB stands for Pakistan Software Export Board. If you are a freelancer and register with them, you get a big discount — your tax will be only 0.25% of your income! This is called the Final Tax Regime. But you must:
- Get a PRC (Proof of Remittance Certificate) from your bank
- Have an export code (IT or freelance services)
- File a tax return every year
Full Income Tax Slabs for Non-Salaried Individuals (If Not Compliant)
| Annual Income (PKR) | Tax Formula |
|---|---|
| 0 – 600,000 | 0% (Exempt) |
| 600,001 – 1,200,000 | 15% of amount exceeding 600,000 |
| 1,200,001 – 1,600,000 | PKR 90,000 + 20% of amount exceeding 1,200,000 |
| 1,600,001 – 3,200,000 | PKR 170,000 + 30% of amount exceeding 1,600,000 |
| 3,200,001 – 5,600,000 | PKR 650,000 + 40% of amount exceeding 3,200,000 |
| Above 5,600,000 | PKR 1,610,000 + 45% of amount exceeding 5,600,000 |
Example: How Much Tax Will You Pay?
Let’s say you make PKR 100,000 per month, which equals PKR 1,200,000 per year:
- If PSEB Registered: You pay 0.25% → PKR 3,000 only!
- If Not Registered: You pay 1% → PKR 12,000
- If Non-Compliant: You fall into tax slab 2 → 15% of amount exceeding 600,000 = PKR 90,000
Why File Your Tax Return?
- You become a filer in Pakistan
- You can buy property or vehicles legally
- You avoid big fines or penalties
- You get lower tax on banking and investments
FAQs About Freelancer Tax in Pakistan (2025–26)
Q1: Is freelancing income taxable in Pakistan?
Yes! If you earn money as a freelancer and bring it into Pakistan, it is taxable. The rate depends on your registration status.
Q2: What is the best tax rate for freelancers?
The best tax rate is 0.25% — this is for freelancers registered with PSEB.
Q3: Can I avoid tax if I don’t show my income?
No! If you don’t file or your income is unregistered, you will be taxed as a non-compliant person — and you will pay a lot more.
Q4: How to become PSEB registered?
Visit the PSEB website and apply as an IT/ITES exporter. You’ll need bank documents, export code, and business details.
Q5: What happens if I earn under PKR 600,000?
You pay zero tax if you’re non-compliant but under the threshold. But still, register and file your return to be safe!
Final Words
Freelancers in Pakistan have a golden opportunity to pay very little tax and stay legal. Whether you work from home or abroad, always report your income and file your tax returns. Registering with PSEB can save you 90% or more in taxes. Be smart, stay safe, and keep growing your freelance business!
If you want to calculate your tax easily, use our free Freelancer Tax Calculator Tool and get your results in seconds!