For the first time in more than ten years, ICANN (Internet Corporation for Assigned Names and Numbers) has announced plans to raise the fees it charges domain registrars. The change is part of ICANN’s effort to maintain stable funding as it continues to support the infrastructure behind global domain name registration.
ICANN notified accredited registrars by letter, outlining both the timing and scope of the proposed adjustments, which are scheduled to take effect on July 1, 2025—marking the beginning of its 2026 fiscal year.
What’s Changing
The key change involves ICANN’s Variable Accreditation Fee. Since 2010, ICANN has offered a 10% discount on this fee to encourage adoption of its 2009 Registrar Accreditation Agreement (RAA). That discount is now on the chopping block.
The Annual Fixed Accreditation Fee remains at $4,000 per registrar. But the per-transaction fee will rise from $0.18 to $0.20. Across all registrars, ICANN expects this change to increase its annual intake from $3.42 million to $3.80 million.
Current vs. Proposed Fee Structure
| Fee Type | Current | Proposed (July 2025) |
|---|---|---|
| Fixed Accreditation Fee | $4,000 | $4,000 |
| Transaction-Based Fee | $0.18 | $0.20 |
| Total Variable Fee (All Registrars) | $3.42 million | $3.80 million |
The fee changes are calculated based on ICANN’s activity in supporting registrars, not on individual transaction volume. That means even small registrars can expect to share the higher cost.
How the Fee Changes Will Be Approved
ICANN isn’t flipping a switch without process. These adjustments will follow the terms laid out in the 2013 Registrar Accreditation Agreement. Here’s what happens next:
Step-by-Step Approval Process
Public Comment Period – ICANN will open a formal public comment process tied to its operating plan and budget.
Board Review and Vote – The ICANN Board will evaluate feedback and vote on the finalized plan.
Registrar Vote – Registrars will vote to approve or reject the adjusted variable fee. This vote is required annually.
If registrars vote yes, the new fees will be reflected on invoices beginning in October 2025. If they vote no, ICANN plans to push the cost to registries. Those registries would then pass the added fees back to registrars anyway, just through a different pipeline.
Registry Fees Are Also Going Up
Registrars aren’t the only ones being tapped. ICANN stated it will also increase the fees it charges most gTLD registry operators. These increases, communicated separately to registries, are being justified by inflation over the past year.
That means every corner of the domain name supply chain—from root to retail—should expect added financial pressure.
Industry Impact
While the numbers may look small on paper, the ripple effect could be significant. For example, high-volume registrars dealing with millions of transactions per year will see costs rise quickly. Smaller registrars, who often operate on thinner margins, may feel squeezed by the equal distribution of variable costs.
More broadly, the fee increase could trickle down to domain registrants. Price hikes—whether subtle or sharp—might show up in consumer-facing registration costs in 2025 and beyond.
Final Thoughts
ICANN hasn’t raised registrar fees in over a decade, which is notable in itself. But the timing and structure of this change are deliberate. By removing an old discount and increasing per-transaction costs slightly, ICANN is trying to patch up long-term financial needs without hitting registrars with a full overhaul.
Still, for an industry that thrives on predictability, even a small increase prompts questions. Will registrars vote to accept the new fees? Or will ICANN route the charges through registries instead? Either way, domain businesses will have to account for higher costs as early as Q3 2025.
Stakeholders now have an opportunity to weigh in through the upcoming public comment process. After that, the math becomes unavoidable.