How much tax does PayPal take

PayPal itself does not deduct tax from your payments. However, it charges transaction fees that can add up quickly. When receiving international payments to India, PayPal typically takes a currency conversion markup of around 3% to 4% on top of its base transaction fee, which can reach 4.4% plus a fixed fee per transaction. These combined costs mean you may lose 7% to 8% of your invoice value.

If you want a clearer picture of what you will actually pay, a detailed PayPal pricing breakdown can help you compare alternatives. Skydo, an RBI-authorised platform built for Indian exporters and freelancers, offers transparent pricing with significantly lower fees and faster transfers, helping you keep more of what you earn without hidden charges eating into your income.