PayPal Fees Explained: Domestic vs International (2026 Rates)
📑 Table of contents (4)
PayPal fees are simple once you know the two components: a percentage of the transaction plus a fixed fee. In 2026 the standard domestic goods & services rate is 2.9% + $0.30. International adds ~1.5% on top.
The two fee tiers you'll actually see
Domestic goods & services: 2.9% + $0.30 (USD). Similar rates apply in most local currencies.
International goods & services: 4.4% + fixed fee (varies by currency, roughly $0.30 USD). PayPal also applies a ~4% currency conversion spread if the payer's currency differs.
How much PayPal takes on common amounts
$100 domestic → $3.20 fee, you keep $96.80.
$500 domestic → $14.80 fee, you keep $485.20.
$1,000 international → $44.30 fee, you keep $955.70 (before currency spread).
How to invoice so you receive the exact amount
Reverse-calculate the gross: Gross = (Net + fixed fee) ÷ (1 − fee %). For $500 net domestic: (500 + 0.30) ÷ 0.971 ≈ $515.24 to invoice.
Our PayPal fee calculator has a 'recipient should receive this' mode that does the reverse math automatically.
How to reduce PayPal fees legally
Use PayPal Friends & Family for eligible personal transfers (no protection).
Consolidate invoices — one $1,000 payment costs $29.30, ten $100 payments cost $32.00.
Where regulation permits, pass the fee to the client as a line item.
FAQs
Does PayPal charge to receive money?
Yes for goods & services (business) payments. Friends & Family from a linked bank in the same country is usually free.
Are PayPal fees tax deductible?
For self-employed users, yes — they're a business expense. Log them monthly to make bookkeeping simple.