Freelancer Tax Calculator 2025-26

This freelancer tax calculator is based on the latest tax rates announced in Pakistan’s 2025-26 federal budget.

Freelancer Income Tax Calculator (2025–26)

Rules for Freelance Income Tax

Freelancers (e.g., Upwork, Fiverr, remote developers) fall under a different tax regime than salaried individuals. Here is how the tax is calculated:

Freelancer TypeTax RateConditions
PSEB Registered
IT/ITES Exporters
0.25% Final TaxMust be registered with the Pakistan Export Board (PSEB). Export proceeds must be received via bank, and a PRC issued with an export code. File annual tax return and withholding statement
Not Registered with PSEB1% Final TaxExport income received via the bank PRC must reflect the correct IT export code. The annual tax return must still be filed
Non-Compliant or No Export ProofFull Income Tax SlabsMust be registered with the Pakistan Export Board (PSEB). Export proceeds must be received via bank, and a PRC issued with export code. File annual tax return and withholding statement

If a freelancer is not registered with PSEB and he is earning his freelance income from Pakistan, then he will fall into the category of the non-salaried class, and the concerned tax rates will be applied.

Full Income Tax Slabs for Non-Salaried Individuals

Annual Income (PKR)Tax Formula
0 – 600,0000% (Exempt)
600,001 – 1,200,000PKR 90,000 + 20% of the amount exceeding 1,200,000
1,200,001 – 1,600,000PKR 170,000 + 30% of the amount exceeding 1,600,000
1,600,001 – 3,200,000PKR 650,000 + 40% of the amount exceeding 3,200,000
3,200,001 – 5,600,000PKR 650,000 + 40% of amount exceeding 3,200,000
Above 5,600,00015% of the amount exceeding 600,000

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