Do You Pay Sales Tax on Airline Tickets?

Many travelers see a low base airfare balloon into a much higher final price at checkout. This increase is due to a variety of government-imposed taxes and fees added to the ticket’s cost. Understanding the breakdown of these costs reveals that while you pay several mandatory charges, a traditional sales tax is not one of them.

The Prohibition of State and Local Sales Tax on Airfare

You do not pay state or local sales tax on airline tickets in the United States. This is due to a federal law known as the Anti-Head Tax Act (AHTA), enacted in 1973. This law prevents state and local governments from levying their own taxes on air transportation, including direct head taxes on passengers or taxes on the sale of air transportation.

The purpose of the AHTA is to maintain a uniform system of taxation for air commerce. This preemption prevents a confusing patchwork of state and local taxes. Instead, the federal government is the sole authority that imposes taxes on air travel, ensuring a consistent approach across the country.

Federal Taxes on Domestic Airline Tickets

While sales tax is not applied, several federal taxes are mandated on every domestic airline ticket, and these are collected by the airline and remitted to the government. The largest of these is the U.S. Federal Excise Tax, a percentage-based tax set at 7.5% of the base airfare. This revenue is a primary funding source for the Airport and Airway Trust Fund, which supports the nation’s aviation infrastructure, including air traffic control operations and airport development projects.

In addition to the excise tax, passengers pay a Federal Segment Fee for each leg of their journey. A “segment” is defined as one takeoff and one landing. For 2025, this fee is $5.20 per domestic segment. For a trip with one connection, a passenger would pay this fee twice on a one-way ticket. The revenue from this fee also contributes to the Airport and Airway Trust Fund.

A third mandatory charge is the September 11th Security Fee, which funds the Transportation Security Administration (TSA). Passengers pay $5.60 for each one-way trip originating in the United States. This fee is capped for a round-trip domestic flight at $11.20, even if there are multiple connections.

Airport and International Travel Charges

Beyond federal taxes, other charges can appear on your ticket depending on your itinerary. One common fee is the Passenger Facility Charge (PFC). This is not a tax but a fee that airports are authorized by the Federal Aviation Administration (FAA) to collect. Airlines collect this fee for the airport, and the revenue funds local airport improvement projects like runway enhancements and terminal expansions. The PFC is capped at $4.50 per segment, with a maximum of $18 per round trip.

For international travel, a different set of taxes applies. The U.S. International Arrival/Departure Tax is levied on all flights arriving in or departing from the United States, and for 2025, this tax is $22.90 per passenger. Additionally, international arrivals are subject to an Animal and Plant Health Inspection Service (APHIS) Fee of $3.71 and an Immigration Fee of $7.00, which fund agricultural inspections and customs processing.

Sales Tax on In-Flight Purchases

While the transportation service itself is exempt from sales tax, this exemption does not extend to goods and services sold during the flight. Ancillary purchases such as alcoholic beverages, premium food items, or Wi-Fi access can be subject to state sales tax.

The application of this tax can be complex, as the transaction occurs while the aircraft is flying over multiple states. To determine which state’s tax laws apply, the jurisdiction is often determined by factors such as the flight’s departure or arrival location or the airline’s primary business location. The airline is responsible for collecting the appropriate sales tax and remitting it to the correct state authority.