How much tax does PayPal charge

PayPal does not charge tax directly, but it does charge transaction fees when you receive international payments. For cross-border transactions to India, PayPal typically deducts a fee of around 4% to 5% plus a fixed amount per transaction, along with currency conversion markup that can add another 3% to 4% to the total cost. These are service fees, not taxes, though you remain responsible for declaring income and paying applicable taxes to Indian authorities.

If you want a more transparent and cost-effective alternative, platforms like Skydo offer a clearer fee structure with significantly lower costs. You can explore a detailed PayPal overview to compare how Skydo stacks up in terms of speed, compliance, and pricing. As an RBI-authorised platform built specifically for Indian exporters and freelancers, Skydo ensures faster settlements and better exchange rates without hidden markups.