Steam’s standard revenue share starts at 30% of a game’s first $10 million in revenue, then falls to 25% on the portion from $10 million to $50 million and 20% on revenue above $50 million. These are marginal tiers—not retroactive discounts. Steam takes a share of revenue, not a percentage of a developer’s accounting profit, and the publisher’s actual payment also depends on adjustments and applicable taxes.
Steam’s revenue-share rates
Valve announced the tiered rates for an application in November 2018, effective for revenue starting October 1, 2018. The lower rates apply only to revenue above each threshold.
| Revenue band for an application | Steam’s share | Partner’s share before other adjustments |
|---|---|---|
| First $10 million | 30% | 70% |
| Portion above $10 million through $50 million | 25% | 75% |
| Portion above $50 million | 20% | 80% |
For example, when an application passes $10 million, the 25% rate applies to the amount above $10 million; it does not reduce Steam’s share on the first $10 million. The same principle applies at $50 million. Valve’s announcement of the revenue-share tiers describes the changes as applying to earnings beyond those thresholds.
Why “profits” is not the right calculation base
The tier percentages describe a revenue share, not a cut of the developer’s profit after paying salaries, marketing, production, or other business costs. Steamworks says Valve pays partners based on Net Revenues: Gross Revenues less Applicable Adjustments. The share percentage is applied to Net Revenues, and the resulting payment is subject to applicable withholding taxes. The partner’s signed Steam Distribution Agreement sets the specific contractual terms.
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- International (UK) Version
- 7.4” diagonal, HDR OLED, 1280 x 800 x RGB, up to 90Hz Refresh rate, High performance touch, <0.1 ms Response time, 1,000 nits peak brightness (HDR), 600 nits (SDR)
- SteamOS 3.0 (Arch-based)
- 512GB NVMe SSD, 16GB LPDDR5 on-board RAM (5500 MT/s quad 32-bit channels), microSD UHS-I supports SD, SDXC and SDHC
- 6 nm AMD APU, CPU: Zen 2 4c/8t, 2.4-3.5GHz (up to 448 GFlops FP32
Valve’s Taxes FAQ identifies taxes, returns, and chargebacks among the applicable adjustments. So the headline percentage alone cannot tell a developer exactly how much cash will arrive from a given amount of customer spending.
Taxes and withholding can affect the payout
Tax handling varies by location. Valve says Steam prices include VAT, GST, or JCT in countries where Valve collects those taxes, and that it remits the tax collected to the relevant authorities. In certain US and Canadian jurisdictions, sales tax is added on top of the Steam price.
Withholding tax is separate from Steam’s revenue-share percentage. Valve says withholding on US-source income may range from 0% to 30%, depending on information supplied in the partner’s tax interview. Valve says it must withhold 30% when no US income tax treaty applies. That is a partner-specific tax matter, not a universal 30% Steam commission. See Valve’s withholding guidance for details.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Steam Direct’s fee is separate
Valve lists a $100 USD Steam Direct fee, or regional equivalent, for each new app. The fee is not refundable, but Valve says it can be recouped in a payment after the product has at least $1,000 in Adjusted Gross Revenue from Steam Store or in-app purchases. It is an entry fee, not an additional percentage of sales. Details are on Valve’s Steam Direct Fee page.
Quick Recap
Best Value
- Valve is entering the gaming console marketplace with the new Steam Deck, a console geared towards PC gamers. The Steam Deck can be docked to a monitor, and used as a PC, or docked to a TV.
- Players can play a huge variety of games at any time with the comfort of a console and the freedom of a PC. Not anti-glare screen.
- Like the name suggests, the Steam Deck will include upgraded 1TB storage, and will include a carrying case. A micro SD slot will also enable expanded storage.
- Valve partnered with AMD to create a specialized APU optimized for handheld gaming, and Valve says the chip will deliver performance to run AAA gaming titles.
- The Steam Deck is outfitted with a 7-inch touchscreen, and two trackpads under the control sticks that allow gamers to operate games never designed outside of mouse and keyboard capabilities.
Rank #4
- 512 GB NVMe SSD: Fast storage for quicker game load times and space for larger game libraries.
- OLED Display: 1200x800 resolution with deep contrasts and vibrant colors for a captivating visual experience.
- Custom AMD APU: Power-efficient Zen 2 CPU and RDNA 2 GPU for desktop-level gaming performance.
- Expandable Storage: Add more space with a microSD card slot, ensuring you can bring even more games with you.
- Versatile Controls: With built-in thumbsticks, trackpads, and touchscreen controls, you have full control over your gaming experience.
Rank #3
- 【Upgraded】We sells product with professionally upgraded to 2TB SSD. Original Seal is opened for upgrade ONLY.
- 【Stunning 7.4" HDR OLED & 90Hz Motion】 Experience striking contrast and brilliant clarity with the all-new 7.4-inch HDR OLED display. Designed from the ground up for gaming, it features a 90Hz refresh rate for smooth motion and pure blacks. This handheld is capable of delivering an immersive visual experience, ensuring your Steam library looks better than ever with vibrant colors and amazing motion rendition.
- 【30-50% More Battery & Efficient Performance】 Play your favorites longer with up to 50% more battery life. By fitting a larger battery and a power-efficient OLED panel, this device provides extended gameplay sessions. It’s the perfect travel companion for long flights or commutes. The updated AMD APU ensures high-speed performance for AAA titles while maintaining incredible energy efficiency.
- 【3X Faster Downloads with Wi-Fi 6E】 Never wait for a game again. Equipped with Wi-Fi 6E, this Steam Deck OLED offers increased bandwidth and lower latency, delivering downloads up to 3 times faster than previous models. This ensures stable online play and rapid updates, making it the most reliable wireless gaming handheld for modern high-speed home networks.
- 【Responsive Touch & Enhanced Connectivity】 Enjoy a vastly improved touchscreen with higher fidelity and faster haptics. We’ve added a dedicated Bluetooth antenna to improve connections for multiple controllers. Whether using the built-in trackpads or the included external controller, this allows for precision play in everything from FPS to complex strategy games.
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