Payhip Review (2026): Fees, Payouts, and Tax Handling for a First Digital Product
What Payhip costs, how fast you get paid, and when it is the wrong choice.
Payhip is a strong first platform if you sell digital downloads, courses, or memberships to an audience you already have: the free plan has no monthly cost, payouts go straight to your PayPal or Stripe account, and Payhip handles several sales taxes for you. It is the wrong choice if you need a marketplace to find buyers for you.
What it costs
On a narrow screen, swipe the table sideways to see every column.
| Plan | Monthly | Transaction fee | Best for |
|---|---|---|---|
| Free | $0 | 5% | Under about $967 in monthly sales |
| Plus | $29 | 2% | About $967 to $3,500 a month |
| Pro | $99 | 0% | Above $3,500 a month |
PayPal and Stripe still charge their standard processing fees on top. Payhip says every plan includes all features, unlimited products, and unlimited revenue.
How you get paid
- No waiting on Payhip. Payhip says it deposits your sales to you immediately after a transaction completes, because buyers pay through your own PayPal or Stripe account.
- PayPal: Payhip’s help center says withdrawals are manual by default; you can switch on automatic transfers on a Premier or Business PayPal account.
- Stripe: payouts go to your bank daily by default. Your first Stripe sale may stay pending for a few days while Stripe reviews the account.
Taxes it handles
Payhip says it collects and pays digital EU/UK VAT and US/Canadian sales tax on your behalf. That covers the usual headaches for a small seller of digital products. Check whether you have obligations in any other country you sell to.
What you can sell
Digital downloads, online courses, coaching, memberships, and physical products, from a store and product pages Payhip hosts for you. You do not need your own website; you can share a product link anywhere.
When to pick something else
- You want a marketplace that brings buyers: Payhip relies on your own audience.
- You want a single company to be merchant of record everywhere: compare Lemon Squeezy vs Payhip.
- You need email, community, and courses in one paid bundle: see Kajabi vs Payhip.
Which Payhip plan should you be on?
All three plans have the same features. Only the fee changes, so the right plan depends on your monthly sales.
| Monthly sales | Cheapest plan | Why |
|---|---|---|
| Under about $967 | Free ($0, 5%) | Plus’s $29 costs more than the 3% it saves |
| About $967 to $3,500 | Plus ($29/mo, 2%) | Saves 3% of sales, which now covers $29 |
| Over about $3,500 | Pro ($99/mo, 0%) | The extra $70 is covered by the last 2% |
Check your own numbers in the Payhip plan calculator.
Pros and cons
| Pros | Cons |
|---|---|
| $0 to start, every feature on every plan | No search marketplace: you bring the buyers |
| Courses, memberships, coaching and physical products included | Stripe or PayPal processing is charged on top |
| Collects and remits EU and UK VAT for you | 5% on the free plan is more than Lemon Squeezy’s per-sale fee at low prices |
| Paid straight to PayPal or Stripe after each sale |
Verdict
Start on the free plan, sell your first product, and move to Plus only after a month above the break-even line. See Payhip’s plans (affiliate link).
Sources. Payhip pricing, Payhip features, Payhip help center: Connect your PayPal account, Connect your Stripe account. Related: Payhip vs Gumroad fees. · Gumroad Fees Explained · Etsy vs Payhip
Selling digital products: every guide on this site
- Payhip vs Gumroad fees
- Gumroad fees explained
- Gumroad alternatives for small creators
- Lemon Squeezy vs Payhip
- Kajabi vs Payhip
- Sell digital products without a website
- Shopify vs WordPress for digital products
- The lean creator business stack
Refunds cost more than the sale: processing fees are not returned, and a chargeback adds $15. See the refund and chargeback cost calculator.
Who handles the tax? Compare which platforms collect and pay sales tax and VAT for you.
Thinking about Shopify? Is Shopify Basic worth it for digital products shows when its monthly plan beats a percentage fee, and the Shopify vs Payhip calculator runs it with your own sales.
Weighing Payhip against a flat monthly plan? See Sellfy vs Payhip for where each one costs less.
Selling a course instead of downloads? See Teachable vs Payhip and Podia vs Payhip for what each plan costs at your sales level.
Run your own numbers: try the free Payhip plan calculator.
FAQ
Is Payhip free?
Yes. The free plan costs $0 a month with a 5% transaction fee, and includes every feature. Stripe or PayPal processing applies on top.
What is the difference between Payhip Free, Plus and Pro?
Only the fee: Free is $0/mo + 5%, Plus is $29/mo + 2%, Pro is $99/mo + 0%. Features are the same on all three.
When should I upgrade to Payhip Plus?
Once you sell more than about $967 a month. Above about $3,500 a month, Pro is cheaper.
Does Payhip handle VAT?
Yes, Payhip collects and remits EU and UK VAT on your behalf.
Is Payhip legit?
Yes. Payhip is a London-based platform that pays sellers directly into their PayPal or Stripe accounts after each sale.
Not sure which platform fits your numbers? Put in your price and monthly sales and see what you keep on every platform at once. If you are just starting, a Payhip store costs $0 until you sell, so you can set it up first and decide later.
Compare my numbers →Start a free Payhip store