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.
How do I invoice so I receive the full amount?
Work backwards from the amount you want to keep: divide it by (1 − the percentage fee) and then add the fixed fee on top. The PayPal fee calculator does this reverse calculation for domestic, international and micropayment rates.
Do micropayments use the same fee?
No. Micropayments use a different rate structure from standard goods and services payments, so a small payment can lose a larger share to fees. Check the micropayment option in the calculator before pricing low-value items.