How much tax PayPal take in India

PayPal does not directly deduct tax in India, but it charges transaction fees that effectively reduce what you receive. When you receive international payments through PayPal in India, you typically pay a receiving fee of around 4.4% plus a fixed charge, along with currency conversion markups that can add another 3% to 4%. These combined charges mean you lose roughly 7% to 8% of your invoice value before the money reaches your bank account.

If you want a clearer picture of what different platforms cost, you can review detailed PayPal pricing comparisons to see how fees stack up. Skydo, an RBI-authorised cross-border payments platform, offers Indian exporters and freelancers a more transparent alternative with significantly lower fees, faster transfers, and better exchange rates, helping you keep more of what you earn from international clients.