Bitcoin transaction fees: what miners get and why you pay
Bitcoin transaction fees are payments miners collect for confirming a transaction in a block; the fee follows transaction size, not amount sent.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
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- Miners pick transactions by fee rate, not amount.
- A fee depends on transaction size.
- The block subsidy is separate income.
For miners, bitcoin transaction fees are one of two rewards from a block. Most payments include a fee for the miner who includes them.
How do miners choose which transactions to include?
Block space is limited, so miners usually take transactions with the highest fee rate. That rate is the fee divided by transaction size, not by the amount you send. Only the miner who builds the block collects the fees.
How do you set a Bitcoin transaction fee?
Your wallet suggests a fee based on how many transactions are waiting. A higher fee rate can make miners include yours sooner, but it does not guarantee faster confirmation.
What happens if the fee is too low?
A fee rate that is too low can leave a transaction unconfirmed while miners fill blocks with better paying transactions. If nodes drop it, your wallet can broadcast it again or replace it.
How do fees differ from the block subsidy?
Miners earn two kinds of income from a block. The block subsidy is new bitcoin the protocol creates. Transaction fees are separate payments users attach, and the subsidy does not come from users.
Bitcoin price todayLive price, charts and market data live in our Coins section.Frequently asked questions
Usually yes. The protocol does not force a fee, but most wallets attach one and most nodes require a minimum relay fee.
Not once it confirms. Some wallets let you replace an unconfirmed transaction with one that pays more.
They would be the only income a miner gets from a block. Users competing for space would set the amount.
Usually not as a personal expense. The IRS treats crypto as property, so a fee to buy can add to your cost basis, and a fee to sell reduces your proceeds.
