Sliding scale fees are variable costs for products, services, or taxes based on one's ability to pay.[1] Such fees are thereby reduced for those who have lower incomes or less money to spare after their personal expenses, regardless of income.
A business or organization may have various motivations for offering a product at a sliding scale. These may include the desire to be charitable to those less able to afford the product or service, their ability to get a tax deduction for offering their services as charity, their ability to benefit from the revenue even from a partial payment, their retention of a longtime customer/client, or referrals that such a customer/client may provide.
Some businesses or organizations may have their profits that would have been obtained from a full-price sale subsidized by some other means. These may include charging a higher cost to a wealthier client, obtaining grants from government agencies or non-profit organizations, or obtaining a tax deduction.
For example, medical fees may depend on a patient's income.[2] Andrew Carnegie imposed this on his workers during the Homestead Strike.[3] Some child adoption agencies collect legal fees (normally very expensive) on a sliding scale so couples across a wider range of incomes are able to adopt children.[4] Sliding scale fees are also often charged by lawyers, places of worship, and for tuition at educational institutions.