Buyer’s Premium Explained: What You Really Pay at Christie’s, Sotheby’s, Phillips and Bonhams
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The hammer falls, the auctioneer says “sold”, and the number on the screen is the price you agreed to pay. Except it isn’t. At every major international auction house, the hammer price is only the starting point. On top of it comes the buyer’s premium, then tax on that premium, and depending on the object and the saleroom, a few more charges besides. For a newcomer, the difference between the hammer price and the final invoice can come as a genuine shock.
This guide explains how the buyer’s premium works at the four houses most collectors meet first: Christie’s, Sotheby’s, Phillips and Bonhams. All rates below come from each house’s own published schedule, checked on 25 October 2026. Auction houses change their rates regularly (all four have done so during 2026), so always confirm the figures in the conditions of sale for the specific auction you are bidding in.
What is the buyer’s premium?
The buyer’s premium is a fee the successful bidder pays to the auction house, calculated as a percentage of the hammer price. It is not negotiable at the moment of bidding and it is not optional. Together with the hammer price it forms the “purchase price”, to which taxes and other charges are then added.
Bonhams describes the premium as the principal way it funds the work behind a sale: specialist research, authentication, provenance and condition checks, cataloguing, photography, the salerooms and online platforms, plus handling and storage. Whatever you think of the level, it helps to see it as part of the price of the object rather than as an unpleasant surprise.
Why the premium is charged in bands
All four houses use a sliding scale. The hammer price is split into bands and each band is charged at its own rate. The rate for the first band is not applied to the whole price. A lot that hammers just above a threshold only pays the lower rate on the portion above that threshold. Bonhams states explicitly that this is how it calculates its premium, and the published schedules of Christie’s, Sotheby’s and Phillips work the same way.
Current rates at the four major houses
Christie’s
According to Christie’s buying guide, from 1 September 2026 the standard buyer’s premium in London is 28% of the hammer price up to and including £1,500,000, 22% on the portion from £1,500,001 to £6,000,000, and 15% above £6,000,000. In New York the thresholds are $2,000,000 and $8,000,000, in Paris €1,750,000 and €7,000,000, and in Geneva CHF 1,600,000 and CHF 7,000,000. Wine has its own schedule (25% with no threshold in most salerooms), and Gooding Christie’s car auctions have separate, lower vehicle rates. Christie’s notes that local taxes may be payable on the premium and that its rates are quoted excluding sales taxes.
Sotheby’s
Sotheby’s help centre lists a 28% premium on the hammer price up to and including £1,500,000 in London ($2,000,000 in New York, €1,750,000 in Paris, Cologne and Milan, CHF 1,600,000 in Switzerland), 22% in the middle band up to £6,000,000 ($8,000,000), and 15% above that. Global Wines & Spirits sales carry 24% on all hammer prices, plus what Sotheby’s calls an overhead premium. Sotheby’s also points out that its rates exclude local taxes and any artist’s resale royalty.
Phillips
Phillips’ published schedule, effective 12 April 2026, sets a standard rate of 29% on the hammer price up to and including $2,000,000 in New York (£1,500,000 in London, €1,750,000 in Paris, CHF 1,600,000 in Geneva), 22% up to $8,000,000 (£6,000,000), and 15% above. Phillips also offers “Priority Bidding” for live auctions: a binding written bid placed at least 48 hours before the sale, at or above the low estimate, qualifies for lower rates of 25%, 20% and 14% if it wins. Watch auctions have their own schedule (27%, 21% and 14.5% in New York) and are excluded from Priority Bidding.
Bonhams
Bonhams changed its rates for sales starting on or after 1 October 2026. In the UK, most categories now pay 30% on the first £25,000 of the hammer price, 28% from £25,000 to £500,000, 25% from £500,000 to £1,000,000, 21% from £1,000,000 to £5,000,000, and 14% above £5,000,000. Wine and whisky pay a flat 24%, while motor cars and motorcycles pay 15% on the first £500,000 and 12% above. Bonhams’ UK page adds that VAT at 20% is added to the premium. In France and Germany the bands are set in euros (first band €30,000) and in the US in dollars (first band $35,000).
A worked example: one hammer price, four invoices
To make this concrete, imagine you win a lot in a London sale with a hammer price of £10,000. Using the published first-band rates above, the buyer’s premium would be:
- Christie’s: 28% = £2,800, purchase price £12,800 before VAT on the premium
- Sotheby’s: 28% = £2,800, purchase price £12,800 before VAT on the premium
- Phillips (standard rate): 29% = £2,900, purchase price £12,900; with a qualifying Priority Bid at 25% = £2,500
- Bonhams: 30% = £3,000, purchase price £13,000; Bonhams states VAT at 20% is added to the premium, so another £600
This is an illustration of the arithmetic only. The VAT treatment of a lot depends on its catalogue symbols, where the lot is located, where you live and where it is shipped, so your actual invoice may differ. The point is simple: at the major houses, budget for roughly a quarter to a third on top of the hammer price before you even think about tax and shipping.
Other costs that can appear on your invoice
VAT, sales tax and import duties
In the UK and EU, VAT is usually charged on the buyer’s premium, and on some lots also on the hammer price, for example when a lot has been imported from outside the region or is sold by a VAT-registered business. Catalogues use symbols to flag these cases, and each house explains them in its conditions of sale. In the US, sales or use tax may apply depending on where the lot is delivered. If a lot is shipped across borders, import duties and local taxes in your country may also apply.
Artist’s resale right
For works by living artists, or artists who died less than 70 years ago, a resale royalty may be added. Bonhams’ UK page lists the current UK rates: 4% on the hammer price from £1,000 to £50,000, falling in bands to 0.25% above £500,000, capped at £12,500 per lot. Lots subject to this royalty are marked in the catalogue, often with “AR”.
Online bidding, shipping, storage and payment fees
Some platforms add a fee for bidding through a third-party website. After the sale you are responsible for collection, and storage charges can start within days. Shipping and insurance for fragile or valuable objects can be significant. Card payments may carry surcharges or limits. Read the “after the sale” section of the catalogue before you bid.
How to bid with the full cost in mind
- Decide your maximum all-in price first. Work out what you are willing to pay in total, then work backwards to a maximum hammer price.
- Read the conditions of sale for that auction. Rates apply per sale and can differ by category and location. The schedule in force when the sale opens is the one that counts.
- Check the catalogue symbols. They tell you whether VAT applies to the hammer price, whether the artist’s resale right applies and whether the lot is in temporary import.
- Get a shipping quote before you bid. Particularly for furniture, sculpture, cars or large wine lots.
- Consider early written bids where they are rewarded. Phillips’ Priority Bidding is currently the clearest example of a lower premium for committing early.
- Compare the full price with the retail market. For watches, our Pre-Owned Luxury Watch Price Guide shows typical dealer and private prices, so you can see whether a hammer price plus premium makes sense.
When you are ready to plan, our Auction Calendar lists the major sales in the coming months.
Frequently asked questions
Is the buyer’s premium negotiable?
Not at the moment you bid. Rates are set in the conditions of sale and apply to all buyers in that auction. Phillips’ Priority Bidding is a published scheme rather than a negotiation.
Do I pay the buyer’s premium at online-only auctions?
Yes. Online auctions at the major houses also carry a buyer’s premium. Phillips, for example, applies its standard rates to timed online auctions.
Why do cars and wine have different rates?
Each house sets separate schedules for some categories. Christie’s and Sotheby’s list separate wine rates, and Bonhams lists separate rates for wine and whisky, coins and medals, and motor cars.
Is the premium included in the estimate?
No. Published estimates refer to the expected hammer price and do not include the buyer’s premium or taxes.
Important
The rates in this article are taken from the auction houses’ own published pages, accessed on 25 October 2026, and may change at any time. Always rely on the conditions of sale for the auction you are bidding in. This article is general information for collectors. It is not financial, tax or legal advice.
Sources: Christie’s, “How to buy at Christie’s: Financial information”; Sotheby’s Help Centre, “What is a buyer’s premium?”; Phillips, “Buyer’s Premium Rates” (effective 12 April 2026) and “Priority Bidding 101”; Bonhams, “Buyer’s premium, United Kingdom”, “Buyer’s premium, United States” and “What are Bonhams’ buyer’s premium and other charges?”.