Does PayPal take tax

PayPal does not directly deduct income tax from your payments, but it does charge transaction fees that can add up significantly. When you receive international payments through PayPal, you will typically pay a currency conversion markup of around 3% to 4% on top of their standard transaction fees. These costs are separate from any tax obligations you owe to Indian tax authorities on your freelance or export income.

If you want to compare PayPal's fee structure and explore alternatives, review the PayPal overview to understand how platforms like Skydo stack up. Skydo is an RBI-authorised cross-border payments platform designed for Indian exporters and freelancers, offering faster settlement times and more transparent pricing. Remember, regardless of which payment platform you use, you are responsible for declaring your income and paying applicable taxes in India.