Micro-Purchases and P-Cards in 2026: What Buyers Should Know

Facts checked against official sources on November 5, 2026. This article is general information, not legal or procurement advice. Your agency's policies, your delegation or warrant, and your contract always control.

The current numbers

An inflation adjustment that took effect on October 1, 2025, raised two key federal thresholds in FAR 2.101:

There are exceptions. The micro-purchase threshold is $2,000 for construction subject to federal wage rate rules and $2,500 for services subject to the Service Contract Labor Standards. Higher limits apply to some contingency and emergency purchases. For supplies, $15,000 is the number most buyers will use.

If an older article, checklist or internal guide still says $10,000, it is out of date.

What the rules allow

Under the current FAR text, micro-purchases may be awarded without soliciting competitive quotes if the person making the purchase considers the price reasonable (FAR 13.203(a)(2)). The same section asks buyers, to the extent practicable, to spread micro-purchases equitably among qualified suppliers.

Many agencies are now using class deviations under the Revolutionary FAR Overhaul, which moves the micro-purchase rules into a new Subpart 13.4. The section numbers may differ in your agency's version, so check the deviation your agency adopted.

One rule does not change: FAR Part 13 bars breaking a requirement into smaller purchases just to stay under a threshold. If your total need is larger than $15,000, the right path is a quote or solicitation for the whole requirement.

Paying with a purchase card

The governmentwide commercial purchase card is the preferred method to make and pay for federal micro-purchases (FAR 13.201(b)). Under the GSA SmartPay program, purchase cards are issued by contractor banks and used to pay for supplies and services bought at the direction of an agency.

For buyers, the card means fewer forms and faster delivery. For suppliers, it means being ready to take a card payment, quote quickly and document the order clearly so the cardholder can reconcile it.

Sales tax on purchase card orders

GSA says all GSA SmartPay purchase cards are centrally billed accounts, and that centrally billed accounts are exempt from direct state sales tax in all 50 states and US territories. GSA also tells cardholders to confirm the exemption with the merchant when they order.

In practice, say it is a federal purchase card order when you ask for the quote. A supplier that knows the rule will keep tax off the quote and the receipt from the start.

California state purchases

California's State Contracting Manual sets its own rules for state agencies. Two are useful for everyday supply buys:

• Fair and Reasonable method: state agencies may use it for purchases under $20,000. Competitive bids are not required, but the buyer must still show the price is fair and reasonable (SCM Volume 2, section 15.10).
• SB/DVBE Option: for purchases from $5,000.01 to $249,999.99, agencies may buy from a certified small business, including microbusinesses, or a disabled veteran business enterprise after getting price quotes from at least two certified SB or DVBE firms (SCM Volume 2, section 14.05.3, and Government Code section 14838.5).

Cities, counties, school districts and special districts set their own purchasing limits, so check your local policy. Our California Small Business certification is in progress, and we will post it on our government page when it is issued.

Tips for faster card buys

1. Send the full list with quantities and the delivery ZIP in one message.
2. Say it is a purchase card order and whether it is federal.
3. Ask for a quote that shows freight and tax as separate lines.
4. Ask for an itemized receipt that matches the quote, for easy reconciliation.
5. Keep the quote and receipt together for your file.

How we handle card orders

We accept government purchase cards, including GSA SmartPay, and company cards. Tell us it is a federal card order and we keep state sales tax off the quote. Most quotes go out within one business day, and the card is charged when the order ships.

Questions buyers ask

Sources

• FAR 2.101, Definitions (acquisition.gov)
• Federal Register, inflation adjustment of acquisition-related thresholds, August 27, 2025 (govinfo.gov)
• FAR 13.203, Purchase guidelines (acquisition.gov)
• FAR Part 13, Simplified Acquisition Procedures (acquisition.gov)
• GSA SmartPay, recognizing your account for tax purposes (smartpay.gsa.gov)
• GSA SmartPay Smart Bulletin 020, state tax exemption (smartpay.gsa.gov)
• California SCM Volume 2, section 15.10, Fair and Reasonable (dgs.ca.gov)
• California SCM Volume 2, section 14.05.3, SB/DVBE Option (dgs.ca.gov)

Keep reading

• How to Request a Supply Quote That Comes Back Fast and Accurate
• Adding a New Supplier? 10 Questions to Ask First