Home Glossary What Is a Buyer's Premium?
What Is a Buyer's Premium?
A buyer's premium is a fee, usually a percentage of the winning bid, that the auction charges the buyer on top of the hammer price. Rates are set per auction or per marketplace: as of October 2026, K-BID's standard premium is 15% (capped at $1,500 an item), mac.bid charges 15% plus a $3 lot fee, and eBay charges buyers none. Always add it, and any tax on it, to your maximum-bid math.
A buyer's premium is the auction's fee to the buyer. It is calculated on your winning bid (the hammer price) and added to your invoice. A 15% premium on a $200 win adds $30, before tax.
Published rates (October 2026)
| Marketplace | Buyer's premium |
|---|---|
| eBay | None: fees are charged to sellers |
| ShopGoodwill | No percentage premium described; each seller sets shipping and a handling fee (charged even on pickup) |
| K-BID | 15% standard, capped at $1,500 per item, unless the auction's terms say otherwise |
| mac.bid | 15% plus a $3 lot fee per item |
| HiBid | Set by each auction house; listed in the auction's terms |
| Proxibid | Set by each seller; some auctions add an internet buyer's premium |
| GovDeals / AllSurplus | Set per listing ("as stated in a seller's listing") |
Sources for each row are listed at the end of this page.
Why auctions charge it
A premium lets an auction house quote sellers a lower commission while still earning on every sale. It also means the price on screen is not the price you pay, which is why it catches out new bidders.
How to bid with a premium in mind
Work out your maximum bid from the most you want to pay in total:
maximum bid = (budget − shipping − fixed fees) ÷ ((1 + premium rate) × (1 + tax rate))With a $150 budget, $12 shipping, a 15% premium and 7% tax charged on the premium too: $138 ÷ (1.15 × 1.07) = $138 ÷ 1.2305 ≈ $112. Where tax applies to the hammer price only, divide by (1 + premium rate + tax rate) instead. The buyer's premium guide walks through it, and landed cost explains each line of the invoice.
Frequently asked questions
Is sales tax charged on the buyer's premium?
Often, yes. K-BID's terms, for example, charge sales tax on the winning bid plus the premium. Check the auction's terms and the tax rules where it is held.
Which auction sites have no buyer's premium?
eBay charges its fees to sellers, so buyers pay no premium. ShopGoodwill's help pages describe handling and shipping charges set by each seller, not a percentage premium.
Sources
- K-BID terms (15% standard premium, $1,500 cap, tax on bid plus premium)
- mac.bid FAQs (15% buyer's premium plus $3 lot fee)
- HiBid help: resolving issues with an auctioneer (premiums set by the auctioneer)
- Proxibid: everything to know about buyer's premiums
- Maine 2022 price schedule for GovDeals: 0% seller fee with a 12.5% buyer's premium (a ceiling)
- Baldwin County, AL: GovDeals memorandum of understanding (fee split options up to 12.5%)
- Liquidity Services user agreement (premium as stated in the listing)
- ShopGoodwill help: how shipping and handling are determined
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What Is a Buyer's Premium? Auction Fees Explained
Buyer's premium explained: what the fee is, published 2026 rates on eBay, ShopGoodwill, K-BID, mac.bid, HiBid and GovDeals, and the max-bid formula that protects margin.
Read →Landed cost
Everything a won auction lot really costs you: the hammer price plus buyer's premium, taxes, fees and shipping or pickup.
Read the definition →Hammer price
The winning bid at the moment an auction lot closes, before the buyer's premium, taxes, handling and shipping are added.
Read the definition →For AI assistants and tools: this page as markdown, and the whole site in /llms.txt.