diff --git a/src/main.cpp b/src/main.cpp
index 68b6b4ee1..f5f1ffd4a 100644
--- a/src/main.cpp
+++ b/src/main.cpp
@@ -731,13 +731,13 @@ bool CTransaction::AcceptToMemoryPool(CTxDB& txdb, bool fCheckInputs, bool* pfMi
         }
 
         // Don't accept it if it can't get into a block
-        if (nFees < GetMinFee(1000))
+        if (nFees < GetMinFee(1000, false, true))
             return error("AcceptToMemoryPool() : not enough fees");
 
         // Continuously rate-limit free transactions
         // This mitigates 'penny-flooding' -- sending thousands of free transactions just to
         // be annoying or make other's transactions take longer to confirm.
-        if (nFees < MIN_TX_FEE)
+        if (nFees < MIN_RELAY_TX_FEE)
         {
             static CCriticalSection cs;
             static double dFreeCount;
@@ -3329,7 +3329,7 @@ CBlock* CreateNewBlock(CReserveKey& reservekey)
 
             // Transaction fee required depends on block size
             bool fAllowFree = (nBlockSize + nTxSize < 4000 || CTransaction::AllowFree(dPriority));
-            int64 nMinFee = tx.GetMinFee(nBlockSize, fAllowFree);
+            int64 nMinFee = tx.GetMinFee(nBlockSize, fAllowFree, true);
 
             // Connecting shouldn't fail due to dependency on other memory pool transactions
             // because we're already processing them in order of dependency
diff --git a/src/main.h b/src/main.h
index 92b73fe5a..117a08475 100644
--- a/src/main.h
+++ b/src/main.h
@@ -29,7 +29,8 @@ static const unsigned int MAX_BLOCK_SIZE_GEN = MAX_BLOCK_SIZE/2;
 static const int MAX_BLOCK_SIGOPS = MAX_BLOCK_SIZE/50;
 static const int64 COIN = 100000000;
 static const int64 CENT = 1000000;
-static const int64 MIN_TX_FEE = 50000;
+static const int64 MIN_TX_FEE = CENT;
+static const int64 MIN_RELAY_TX_FEE = 50000;
 static const int64 MAX_MONEY = 21000000 * COIN;
 inline bool MoneyRange(int64 nValue) { return (nValue >= 0 && nValue <= MAX_MONEY); }
 static const int COINBASE_MATURITY = 100;
@@ -599,12 +600,14 @@ public:
         return dPriority > COIN * 144 / 250;
     }
 
-    int64 GetMinFee(unsigned int nBlockSize=1, bool fAllowFree=true) const
+    int64 GetMinFee(unsigned int nBlockSize=1, bool fAllowFree=true, bool fForRelay=false) const
     {
-        // Base fee is 1 cent per kilobyte
+        // Base fee is either MIN_TX_FEE or MIN_RELAY_TX_FEE
+        int64 nBaseFee = fForRelay ? MIN_RELAY_TX_FEE : MIN_TX_FEE;
+
         unsigned int nBytes = ::GetSerializeSize(*this, SER_NETWORK);
         unsigned int nNewBlockSize = nBlockSize + nBytes;
-        int64 nMinFee = (1 + (int64)nBytes / 1000) * MIN_TX_FEE;
+        int64 nMinFee = (1 + (int64)nBytes / 1000) * nBaseFee;
 
         if (fAllowFree)
         {
@@ -623,11 +626,11 @@ public:
             }
         }
 
-        // To limit dust spam, require MIN_TX_FEE if any output is less than 0.01
-        if (nMinFee < MIN_TX_FEE)
+        // To limit dust spam, require MIN_TX_FEE/MIN_RELAY_TX_FEE if any output is less than 0.01
+        if (nMinFee < nBaseFee)
             BOOST_FOREACH(const CTxOut& txout, vout)
                 if (txout.nValue < CENT)
-                    nMinFee = MIN_TX_FEE;
+                    nMinFee = nBaseFee;
 
         // Raise the price as the block approaches full
         if (nBlockSize != 1 && nNewBlockSize >= MAX_BLOCK_SIZE_GEN/2)