At auction, the price the auctioneer calls is rarely the price you pay. On top of the hammer price comes a buyer’s premium, then tax, then shipping. Christie’s sums it up: “the total cost to the buyer is the hammer price + buyer’s premium + any applicable taxes or shipping charges” (Christie’s).
What a buyer’s premium is
A buyer’s premium is a percentage of the hammer price charged to the winning bidder by the auction house. Rates vary by house and sale, and are set out in each sale’s conditions. Read them before you bid.
A simple example: 28% flat
One Japanese art auction house selling on LiveAuctioneers states plainly: “the buyer’s premium is 28%”. It adds that US buyers pay sales tax based on their shipping address, and that shipping, insurance and handling are at the purchaser’s expense (Floating World Auctions).
| Illustrative example | Amount |
|---|---|
| Hammer price | $10,000 |
| Buyer’s premium at 28% | $2,800 |
| Subtotal before tax and shipping | $12,800 |
| Sales tax and shipping | Added on top, depending on destination |
Tax can apply to the premium as well as the hammer price. Christie’s New York conditions say sales or use tax “may be due on the hammer price, buyer’s premium, and/or any other charges”, and give 8.875% as the New York rate for lots collected there (Christie’s New York Conditions of Sale). At that rate, a $12,800 subtotal would carry about $1,136 in tax, for roughly $13,936 before shipping. That is a hypothetical calculation only. Your rate depends on where the piece ships.
Tiered premiums at the major houses
Large houses use tiers, where each rate applies only to the slice of the hammer price within its band. From 1 September 2026, Christie’s charges 28% on the hammer price up to US$2,000,000 (£1,500,000 in London), 22% from there up to US$8,000,000, and 15% above that, excluding wine and Gooding sales (Christie’s financial information).
Worked through on a US$3,000,000 hammer in New York: 28% of the first $2,000,000 is $560,000, plus 22% of the next $1,000,000 is $220,000. That makes a premium of $780,000, or 26% overall, before tax.
Sellers pay too
Fees are not only on the buy side. Catawiki, for example, says it charges sellers “a seller success fee of 12.5% and an additional fixed amount”, that it is free to submit an object, and that buyers cover shipping (Catawiki). Seller commission affects which lots come to market and at what reserve.
How to compare lots fairly
- Find the premium rate in the sale’s conditions, including any tiers and any extra fee for bidding online.
- Add the tax you’ll owe at your delivery address, on the premium as well as the hammer.
- Get a shipping and insurance quote before you bid, not after. Post-sale shipping costs are rarely grounds to cancel.
- Set your maximum bid from the total you’re willing to pay, working backwards to a hammer price.
That last step is why Curated Hammer will show one all-in total on every lot before you bid. Our own fees will be published on our Fees page before launch.
This guide is general information from Curated Hammer, not a valuation or authentication. Prices quoted are past estimates published by the auction houses linked, not predictions.
Sources: Floating World Auctions, LiveAuctioneers FAQ; Christie’s, financial information; Christie’s New York Conditions of Sale (Sept 2025); Christie’s, understanding auction fees; Catawiki, sell.