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If You Live in These 3 States, Prepare for a $500 Starlink 'Demand Surcharge'

SpaceX has quietly doubled the demand surcharge for new Starlink sign-ups in certain parts of the Pacific Northwest and in North Carolina.

 & Michael Kan Principal Reporter

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UPDATE 6/5: The $500 surcharge has also been popping up in western North Carolina. One customer discovered the extra fee after already buying a dish and trying to activate it. "Is it just me or is this exorbitant and disgusting?" the user wrote on Reddit. However, the extra fee isn't appearing in other parts of the state.

Original story:

If you live in the Pacific Northwest, you might be forced to pay an extra $500 to subscribe to Starlink. SpaceX is quietly doubling the cost of the "demand surcharge" for Starlink in parts of Oregon and Washington state, where the satellite internet service faces limited network capacity. 

On Tuesday, a Reddit user who lives north of Seattle reported the $500 demand surcharge, which is more than the $349 price for the Starlink dish itself. “What gives? $500 is INSANE! Seems like a ridiculous charge to take advantage of those who don’t have other options,” they wrote.

(Credit: Starlink.com)

It’s a significant increase from when the demand surcharge, previously known as the congestion fee, was only $100. In April, SpaceX then increased the surcharge to $250 for select areas where Starlink was already at capacity. 

On the plus side, the company has removed the waitlist for Starlink across the US for consumers looking to subscribe to the residential plan. But it looks like SpaceX has increased the demand surcharge for select areas to prevent overloading the network with new subscribers. 

Although the $500 one-time fee is high, SpaceX appears to be imposing the surcharge in more urban and suburban areas of Washington and Oregon, including Seattle and Portland, where other ground-based internet services are usually available.

Where the free Starlink kit deal is available in the US.
(Credit: Starlink.com)

Unfortunately, the Reddit user wrote: “My house just happens to be on a road where the two options are either DSL or another company who refuses to extend their service to my address, even though they service the house across my street.”

In other areas of the US, including in more rural areas of Oregon, SpaceX is taking the opposite approach and offering Starlink hardware for free, without any demand surcharge. But to receive the deal, the customer has to commit to a one-year subscription for the residential plan.

About Our Expert

Michael Kan

Michael Kan

Principal Reporter

My Experience

I've been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I'm currently based in San Francisco, but previously spent over five years in China, covering the country's technology sector.

Since 2020, I've covered the launch and explosive growth of SpaceX's Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I've combed through FCC filings for the latest news and driven to remote corners of California to test Starlink's cellular service.

I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. In 2024 and 2025, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.

I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I'm now following how the AI-driven memory shortage is impacting the entire consumer electronics market. I'm always eager to learn more, so please jump in the comments with feedback and send me tips.

The Best Tech I've Had:

  • My first video game console: a Nintendo Famicom
  • I loved my Sega Saturn despite PlayStation's popularity.
  • The iPod Video I received as a gift in college
  • Xbox 360 FTW
  • The Galaxy Nexus was the first smartphone I was proud to own.
  • The PC desktop I built in 2013, which still works to this day.

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