📊 How PayPal Fees Work in 2026
PayPal deducts a percentage + fixed cent fee on every commercial payment. Use the reverse formula below if you want the buyer to cover the fee so you receive 100% of your invoice.
Invoice Amount to Ask = (Target Net Payout + $0.49) ÷ (1 − Total Fee Rate)
📋 2026 PayPal US Fee Rates
| Payment Type | US Domestic | International Add-On |
|---|---|---|
| PayPal Checkout / Invoicing | 3.49% + $0.49 | +1.50% (+ FX spread) |
| Standard Credit/Debit Cards | 2.99% + $0.49 | +1.50% cross-border |
| Goods & Services (Send/Receive) | 2.99% | +1.50% cross-border |
| QR Code In-Person (>$10) | 1.90% + $0.10 | +1.50% cross-border |
💡 Why Simply Adding 3.49% Leaves You Short
⚡ On a $1,000 invoice, adding $34.90 + $0.49 ($1,035.39) still leaves you with $998.76 because PayPal charges 3.49% on the new higher total. Invoice $1,036.67 to net exactly $1,000.00.
Frequently Asked Questions
Can I use Friends & Family for client work?
No. Business payments on Friends & Family violate PayPal rules, void Seller Protection, and risk 180-day account holds.
Are PayPal fees tax-deductible?
Yes. 100% of PayPal, Stripe, and merchant fees are deductible as business expenses.
Does PayPal refund its fee when I refund a buyer?
No. PayPal keeps the original processing fee on refunded commercial transactions.