diff --git a/background/background.go b/background/background.go
index 598e4c6..882c8b6 100644
--- a/background/background.go
+++ b/background/background.go
@@ -95,6 +95,17 @@ func blockConnected() {
 		feeTxHash, err := dcrdClient.SendRawTransaction(ticket.FeeTxHex)
 		if err != nil {
 			log.Errorf("SendRawTransaction error: %v", err)
+
+			// Unset fee related fields and update the database.
+			ticket.FeeTxHex = ""
+			ticket.VotingWIF = ""
+			ticket.VoteChoices = make(map[string]string)
+
+			err = db.UpdateTicket(ticket)
+			if err != nil {
+				log.Errorf("UpdateTicket error: %v", err)
+			}
+			log.Infof("Removed fee transaction for ticket %v", ticket.Hash)
 			continue
 		}
 
diff --git a/docs/api.md b/docs/api.md
index 424954c..61d8fa6 100644
--- a/docs/api.md
+++ b/docs/api.md
@@ -134,6 +134,7 @@ fields:
 
 - `ticketconfirmed` is true when the ticket transaction has 6 confirmations.
 - `feetxreceived` is true when the VSP has received a valid fee transaction.
+   If the broadcast of the fee transaction fails, this will be reset to false.
 - `feetxbroadcast` is true when the VSP has broadcast the fee transaction.
 - `feeconfirmed` is true when the fee transaction has 6 confirmations.
 
diff --git a/webapi/payfee.go b/webapi/payfee.go
index 1e5e38e..691e4f1 100644
--- a/webapi/payfee.go
+++ b/webapi/payfee.go
@@ -220,7 +220,19 @@ findAddress:
 		feeTxHash, err := dcrdClient.SendRawTransaction(payFeeRequest.FeeTx)
 		if err != nil {
 			log.Errorf("SendRawTransaction failed: %v", err)
-			sendError(errInternalError, c)
+
+			// Unset fee related fields and update the database.
+			ticket.FeeTxHex = ""
+			ticket.VotingWIF = ""
+			ticket.VoteChoices = make(map[string]string)
+
+			err = db.UpdateTicket(ticket)
+			if err != nil {
+				log.Errorf("UpdateTicket error: %v", err)
+			}
+			log.Infof("Removed fee transaction for ticket %v", ticket.Hash)
+
+			sendErrorWithMsg("could not broadcast fee transaction", errInvalidFeeTx, c)
 			return
 		}
 		ticket.FeeTxHash = feeTxHash