Kalshi Fees Explained (2026): Every Cost Before You Trade

How Kalshi's fee structure works

Kalshi fees are not a flat rate. They scale with the contract price using a formula that charges more on balanced markets and less on extreme favorites or longshots. The formula:

Fee per contract = 7% x p x (1 - p)

Where p is the contract price in cents divided by 100. This is the taker fee, which you pay when your order matches immediately against an existing order on the book. Maker fees (limit orders that rest on the book) are roughly 75% cheaper.

The formula means a contract at $0.50 (the most balanced price point) carries the maximum fee of $0.0175 per contract per side. A contract at $0.10 or $0.90 carries only $0.0063. The math penalizes trading near 50/50 markets and rewards trading at extreme prices.

This is fundamentally different from sportsbooks, where the vig is hidden inside the odds. On Kalshi, the fee is explicit, separate from the market price, and calculable before you trade. Run any scenario through the fee calculator to see exact costs.

Maker vs taker: why order type changes everything

The distinction between maker and taker fees is the single biggest cost lever you control on Kalshi.

Taker orders execute immediately against the best available price on the order book. You pay the full 7% x p x (1-p) fee. This is what happens when you click "Buy" or "Sell" at the displayed price.

Maker orders are limit orders that sit on the book until someone else matches them. You pay approximately 1.75% x p x (1-p), roughly one quarter of the taker fee. The tradeoff: your order might not fill, or it might take hours.

Worked example: the maker advantage on a $0.55 contract

You want to buy 100 contracts on "Will the Fed cut rates in June?" currently at $0.55.

As a taker (market order):

• Fee per contract: 7% x 0.55 x 0.45 = $0.01733
• Total fee on 100 contracts: $1.73
• Total cost: $55.00 + $1.73 = $56.73

As a maker (limit order at $0.54):

• Fee per contract: 1.75% x 0.54 x 0.46 = $0.00435
• Total fee on 100 contracts: $0.44
• Total cost: $54.00 + $0.44 = $54.44

The maker order saves $1.29 on this single trade. Over 50 similar trades per month, that is $64.50 in saved fees. The catch: your limit order at $0.54 only fills if the market comes to you. On liquid markets, this happens regularly. On thin markets, you might wait indefinitely.

This is why active Kalshi traders who trade directly on Kalshi rather than through Robinhood or Coinbase have a structural cost advantage. Robinhood and Coinbase do not offer limit orders, so every trade is a taker order. See the Kalshi vs Robinhood comparison for the full breakdown.

Step 1Check the contract price

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Step 2Calculate fee: 7% x p x (1-p)

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Step 3Choose maker (limit) or taker (market)

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Step 4Factor fee into your EV calculation

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Step 5Size the position with fee-adjusted Kelly

Fee at every price point: the complete schedule

The curve peaks at $0.50 and drops symmetrically toward both extremes. Here is the taker fee at key price levels:

Two things stand out. First, the round-trip cost never exceeds $3.50 per 100 contracts even at the worst price point. Compare that to sportsbook vig of 4.5% on a standard -110 line, which costs $4.50 per $100 wagered. Second, trading at extreme prices ($0.10 or $0.90) costs less than half what balanced prices cost. The hold calculator puts this in context against sportsbook margins.

Settlement fees follow the same formula. When a contract resolves at $1.00 or $0.00, you pay the fee based on the settlement price. A winning contract at $1.00 pays a settlement fee of 7% x 1.0 x 0.0 = $0.00. Winning contracts settle fee-free. Losing contracts also settle fee-free (7% x 0.0 x 1.0 = $0.00). You only pay fees when you trade, not when contracts resolve.

When Kalshi fees destroy your edge

Fees do not matter equally on every trade. A 2-cent fee on a 50-cent swing is negligible. A 2-cent fee on a 3-cent expected profit is devastating. The break-even calculator shows exactly where fees flip a trade from profitable to unprofitable.

Worked example: thin edge at $0.50

You estimate a 54% true probability on a contract trading at $0.50. Without fees, your expected value per contract is:

EV = (0.54 x $0.50) - (0.46 x $0.50) = $0.27 - $0.23 = +$0.04

That is a 4-cent edge per contract, or 8% EV. Now add the taker fee:

Taker fee: 7% x 0.50 x 0.50 = $0.0175 per side Round-trip fee (buy + settlement is free for winners, but you pay on entry): $0.0175 Fee-adjusted EV: $0.04 - $0.0175 = +$0.0225

The fee consumed 44% of your edge. Still positive, but your effective EV dropped from 8% to 4.5%. If your probability estimate is off by even 2 percentage points, the trade becomes -EV after fees.

As a maker, the fee drops to $0.00435, consuming only 11% of your edge. The difference between a profitable and unprofitable trading operation on Kalshi often comes down to this single variable: maker vs taker.

Worked example: longshot at $0.15

You estimate a 22% true probability on a contract trading at $0.15.

EV = (0.22 x $0.85) - (0.78 x $0.15) = $0.187 - $0.117 = +$0.07

Taker fee: 7% x 0.15 x 0.85 = $0.00893 Fee-adjusted EV: $0.07 - $0.00893 = +$0.061

The fee consumed only 13% of your edge. Longshot contracts are structurally cheaper to trade on Kalshi. This is the opposite of sportsbooks, where vig is higher on longshots. The PM EV calculator handles all fee-adjusted calculations automatically.

Kalshi fees vs other platforms

The fee landscape across prediction market platforms varies significantly. Here is how Kalshi compares on a $0.50 contract (worst-case fee scenario):

Kalshi taker fees are mid-range. The real advantage is maker pricing, which undercuts every other platform. For active traders placing 20+ trades per month, the maker discount compounds into hundreds of dollars in annual savings. See the full platform fee comparison for detailed analysis across all market types.

Polymarket charges nothing upfront but takes 2% of net profits. On winning trades, that 2% can exceed Kalshi's per-trade fee. On losing trades, Polymarket charges nothing. The optimal platform depends on your win rate and average profit per trade. The fee calculator models both structures side by side.

How to minimize your Kalshi fees

Five concrete actions, ordered by impact:

1. Use limit orders whenever possible. Maker fees are 75% cheaper than taker fees. On liquid markets like Fed rate decisions and election contracts, limit orders at one tick below the ask fill within minutes.

2. Trade at extreme prices. A $0.10 contract costs $0.0063 in fees versus $0.0175 at $0.50. If your edge exists at multiple price points, favor the extremes.

3. Avoid round-trips on thin edges. Selling before settlement incurs a second fee. If your expected profit from selling early is less than 2x the taker fee, hold to settlement instead. Settlement is free for both winners and losers.

4. Batch your trades. Kalshi does not charge per-order fees beyond the per-contract formula. Placing 100 contracts in one order costs the same as 10 orders of 10. No minimum order penalty.

5. Compare against Robinhood and Coinbase. Both route through Kalshi's order book, but neither offers maker pricing. If you are currently trading Kalshi contracts through Robinhood, switching to Kalshi directly for limit orders saves roughly $1.30 per 100 contracts on a $0.55 market.

For a complete framework on how fees interact with expected value and position sizing, read the prediction market fees guide. The Kelly Criterion should always use fee-adjusted odds, not raw contract prices.

Frequently asked questions

How much does Kalshi charge per trade?

Kalshi charges 7% x p x (1-p) per contract for taker orders, where p is the contract price. At $0.50, that is $0.0175 per contract. Maker orders (limit orders) pay roughly 75% less. Settlement is free.

Are Kalshi fees higher than Polymarket?

It depends on the trade. Kalshi charges per-contract fees on every trade. Polymarket charges 2% only on net profits. For winning trades with large profits, Polymarket can be more expensive. For losing trades, Polymarket charges nothing. Use the fee calculator to compare for your specific scenario.

Do I pay fees when my Kalshi contract settles?

No. Settlement fees use the same 7% x p x (1-p) formula, but at $1.00 or $0.00 the formula returns zero. You only pay fees when you actively buy or sell contracts on the order book.

What is the difference between maker and taker fees on Kalshi?

Taker orders (market orders that execute immediately) pay the full 7% x p x (1-p) fee. Maker orders (limit orders that rest on the book) pay approximately 1.75% x p x (1-p), roughly one quarter of the taker rate. Maker orders require patience but save significant money over time.

Are Kalshi fees tax deductible?

Yes. Trading fees reduce your cost basis or net proceeds, lowering your taxable gain. Kalshi reports trades on 1099-B forms. Fees are factored into the cost basis calculation. See the Kalshi 1099 guide for full tax details.