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 Type | Tax Rate | Conditions |
|---|---|---|
| PSEB Registered IT/ITES Exporters | 0.25% Final Tax | Must 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 PSEB | 1% Final Tax | Export 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 Proof | Full Income Tax Slabs | Must be registered with the Pakistan Export Board (PSEB). Export proceeds must be received via bank, and a PRC issued with the export code. File annual tax return and withholding statement |
If a freelancer is not registered with PSEB and 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 – 600,000 | 0% (Exempt) |
| 600,001 – 1,200,000 | 15% of the amount exceeding 600,000 |
| 1,200,001 – 1,600,000 | PKR 90,000 + 20% of the amount exceeding 1,200,000 |
| 1,600,001 – 3,200,000 | PKR 170,000 + 30% of the amount exceeding 1,600,000 |
| 3,200,001 – 5,600,000 | PKR 650,000 + 40% of the amount exceeding 3,200,000 |
| Above 5,600,000 | PKR 1,610,000 + 45% of the amount exceeding 5,600,000 |
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