PayPal fees in 2026
PayPal charges the person who receives money for a sale: a percentage of the payment plus a fixed fee. The rate depends on how the customer pays.
| US payment type | Fee |
|---|---|
| PayPal Checkout (PayPal button, Venmo, guest checkout) | 3.49% + $0.49 |
| Invoice paid with PayPal or Venmo | 3.49% + $0.49 |
| Invoice or payment by credit/debit card | 2.99% + $0.49 |
| Send/receive money for goods & services | 2.99% |
| International payments | +1.5% on top |
| Friends & family (bank or balance) | Free, but not for business |
In the UK, the standard rate for commercial transactions is 2.9% + £0.30, plus 1.5% when the payment comes from abroad.
The formula
Fee = amount × rate + fixed fee
Amount to charge = (amount you want + fixed fee) ÷ (1 − rate)
How to pay less in PayPal fees
- Never use friends & family for business. It's against PayPal's rules and you lose seller protection.
- Price the fee in. Use "What I should charge" so the client covers it, and mention it on your invoice.
- Batch small payments. The fixed fee hurts most on small amounts: on a $10 payment it's almost 8.4% in total.
- Watch currency conversion. Converting a foreign balance in PayPal costs a spread of a few percent on top of the fees above.
- Compare with Stripe or bank transfer using our Stripe fee calculator, and send your invoices with the free invoice generator.
Are PayPal fees tax deductible?
Yes. For freelancers and businesses, payment processing fees are a business expense, so they reduce your taxable profit in both the US and the UK. Plan your tax with the 1099 tax calculator or the UK self-employed tax calculator.
Frequently asked questions
How much does PayPal take from $100?
For a US invoice or checkout paid with PayPal, the fee is 3.49% + $0.49 = $3.98, so you receive $96.02. If the client pays by card, it's 2.99% + $0.49 = $3.48.
What is the PayPal fee for invoices in 2026?
In the US, 3.49% + $0.49 when the client pays with PayPal or Venmo, and 2.99% + $0.49 when they pay by card. International payments add 1.5%.
How much are PayPal fees in the UK?
The standard UK commercial rate is 2.9% + £0.30 per payment, plus 1.5% for payments from other countries.
Does the buyer or seller pay the PayPal fee?
For sales and invoices, the seller (the person receiving the money) pays the fee. You can increase your price to cover it.
Sources
This calculator gives estimates for planning only. It is not tax, legal or financial advice. Rules and fees change, so check the official source or a qualified professional before making decisions.