A Breakdown of Taxes on Airline Tickets

When purchasing an airline ticket, the final price reflects more than just the airline’s charge for transportation. A significant portion of the total cost consists of various government-imposed taxes and mandatory fees. These charges are collected by the airlines at the time of purchase but are not retained as revenue. Instead, the airlines act as collection agents, remitting these funds to the respective government agencies responsible for aviation security and infrastructure.

Breakdown of Domestic Flight Taxes and Fees

The price of a domestic airline ticket includes several specific taxes and fees mandated by the U.S. government, each with a distinct purpose.

• The Federal Excise Tax is calculated as 7.5% of the base fare. This tax directly funds the Airport and Airway Trust Fund, which is managed by the Federal Aviation Administration (FAA) to support the national aviation system.
• The Federal Segment Fee is a flat fee charged for each leg of a journey, defined as one takeoff and one landing. For 2025, this fee is $5.20 per domestic segment, with revenue contributing to the FAA’s funding for air traffic control.
• The September 11th Security Fee is levied to fund the Transportation Security Administration (TSA). Passengers pay $5.60 for each one-way trip, and the fee is capped at $11.20 for a round-trip domestic flight to cover screening costs.
• The Passenger Facility Charge (PFC) is collected by airlines on behalf of airports, not the federal government. Airports use these funds for FAA-approved projects, and the amount can vary but is capped at $4.50 per enplanement, with a maximum of $18 per round-trip ticket.

Additional Taxes on International Flights

Journeys that extend beyond the United States are subject to additional layers of government-imposed charges not found on purely domestic tickets. The primary U.S. charge is the International Arrival and Departure Tax. As of 2025, this tax is $22.90 per passenger for flights that begin or end in the United States.

Beyond this flat tax, international tickets include several smaller fees to cover the costs of federal inspection services. Passengers will pay a Customs User Fee of $7.20, an Immigration User Fee of approximately $7.00, and an Animal and Plant Health Inspection Service (APHIS) fee of $3.71 to fund agricultural inspections designed to prevent the entry of foreign pests and diseases.

It is also important to recognize that the ticket price may include taxes levied by the foreign country of arrival or departure. Airlines are required to collect these on behalf of foreign governments. These charges can vary significantly from one country to another and may be listed under various names, such as departure taxes or tourism fees.

Taxes on Award Tickets

Many travelers using frequent flyer miles or points are surprised to find they still owe a cash payment for their “free” ticket. This is because while the points or miles cover the base fare set by the airline, they do not cover the mandatory government-imposed taxes and fees. These out-of-pocket costs are the same charges that apply to a standard revenue ticket and must be paid by the passenger at the time of booking.

For a domestic award ticket, a traveler can expect to pay the applicable September 11th Security Fee, Federal Segment Fees, and any Passenger Facility Charges levied by the departure, connecting, and arrival airports.

On international award tickets, the tax burden is higher. In addition to the domestic fees like the segment fee and PFCs, travelers must pay the U.S. International Arrival and Departure Tax. Furthermore, any applicable customs and immigration user fees are charged, and the total cash outlay can become substantial when foreign government taxes are also included.

Differentiating Taxes from Airline Surcharges

When reviewing a fare breakdown, it is useful to distinguish between government-imposed taxes and carrier-imposed surcharges. While both contribute to the final ticket price, their destination and purpose are entirely different. The taxes and fees discussed previously are collected by the airline and remitted to government agencies to fund specific aviation-related services.

In contrast, carrier-imposed surcharges are additional fees kept by the airline as revenue. These charges are often labeled with names like “fuel surcharge” or “international surcharge,” but they are not tied to a specific government mandate. Airlines have discretion over the amount of these surcharges, which can fluctuate based on market conditions, route, and other commercial factors.

For example, a hypothetical fare breakdown for a $400 ticket might show a $250 base fare, $90 in carrier-imposed surcharges, and $60 in government taxes and fees. In this scenario, the airline retains the $250 base fare and the $90 surcharge, for a total of $340. The remaining $60 is collected on behalf of government entities.