Sarvar: let's use the word "fee."
It will be less confusing. We can use the word "tax" to refer to money collected by governments. Upwork does not levy taxes, but it collects a percentage "fee" from the payments clients make to freelancers.
You believe that the fee being collected is too high.
The fee is 20% for the first $500 earned. 10% until $10,000. 5% after that.
How much have you earned with this client?
Thanks for reaching out to us. I checked and it seems that all the calculations are correct. Please note that as a freelancer, you’re charged a sliding fee based on your lifetime billings with each non-Enterprise client. This includes all contracts you’ve ever had with that client. Service fees are the same whether the contracts are hourly or fixed-price.
Additionally, could you please send me a PM with more information regarding your report so that I can check and assist you further?
Is this fee decrease at the contract level, or does it go deeper?
Meaning, if I charged a single client $400 then $600 on the next contract, will only $100 of the last contract be charged 20% and 10% on the remaining $500? Or will it only be after these contracts?
re: "Is this fee decrease at the contract level?"
The fees are based on the total amount of money earned while working with a single client.
It doesn't matter if it is with one contract, or 10 contracts, or 100.
Jason B wrote:
Meaning, if I charged a single client $400 then $600 on the next contract, will only $100 of the last contract be charged 20% and 10% on the remaining $500?
Yes - once you hit $500 for a client, even in the middle of a contract, the fee drops.