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Freelancer Tax Calculator 2026-27
Work out tax on both your foreign-client income (IT/export — Section 154A) and your local-client income (business slabs), in one place.
Note: export income is final tax on gross receipts; domestic income is taxed separately on the business slabs. The two are not aggregated.
How freelancers are taxed in Pakistan
A Pakistani freelancer's income usually comes in two parts, taxed in two different ways.
Foreign (export) income: earnings from Upwork, Fiverr, or direct foreign clients are taxed as a final tax under Section 154A — a low rate on gross receipts. IT freelancers registered with the Pakistan Software Export Board (PSEB) pay just 0.25%; others pay 1%. Because it's a final tax, no further slab tax applies to this income.
Domestic income: earnings from Pakistani clients are taxed on the ordinary business (non-salaried) slabs, on your net profit after expenses. The two income streams are computed separately — your export income does not push your domestic income into a higher slab, because final-tax income is not aggregated with normal income.
Frequently asked questions
How much tax on Upwork/Fiverr income?
IT income from foreign clients is a final tax under Section 154A — 0.25% if PSEB-registered, otherwise 1%, on gross receipts.
Why does PSEB registration matter?
Registering with the Pakistan Software Export Board qualifies you for the reduced 0.25% rate instead of 1% — a significant saving on export income.
Do I still need to file a return?
Yes. Even with final tax, you should file a return and stay on the Active Taxpayer List — otherwise you pay higher withholding on banking and other transactions.
How are local and foreign income combined?
They aren't combined. Export income is taxed separately at the final rate, domestic income on the slabs. Your total tax is the sum of the two.