Taxation and Regulatory Compliance

What Are the Taxes and Fees on an Airline Ticket?

Gain clarity on your airline ticket's final price. This guide explains the composition of the cost, distinguishing between government and airline charges.

The final price of an airline ticket is composed of the base fare set by the airline, plus a series of government-imposed taxes and fees. These additional charges are not determined by the airline but are mandated by various government entities. Understanding this breakdown shows how ticket revenue funds national aviation infrastructure and security operations. The total amount paid by a passenger is a combination of the airline’s charge and these compulsory government levies.

Federal Taxes on Domestic Flights

When purchasing a ticket for a domestic flight, two federal taxes are applied to the fare. The first is a federal excise tax, calculated as 7.5% of the ticket’s base fare, so the tax amount increases with the ticket price. The revenue generated from this tax is directed into the Airport and Airway Trust Fund (AATF), which supports the nation’s aviation system.

A second charge, the Flight Segment Tax, is $5.20 per segment for 2025. A flight segment is a single takeoff and landing, so a nonstop flight is one segment, while a connecting flight consists of two or more. Revenue from both taxes is used by the Federal Aviation Administration (FAA) for air traffic control, airport improvements, and research.

Government-Imposed Fees

Distinct from federal taxes, several government-mandated fees are also included in the ticket price. The September 11th Security Fee is $5.60 per one-way trip and is used to fund the Transportation Security Administration (TSA). The fee is capped at $11.20 per round trip, so a journey with multiple connections does not result in a higher charge.

Another fee is the Passenger Facility Charge (PFC), which is collected by airlines on behalf of specific airports. Airports use these funds for FAA-approved projects that improve safety or increase capacity. The amount of the PFC can vary by airport, up to a federally mandated maximum of $4.50 per segment. A traveler can be charged for a maximum of four segments per round trip, for a total of up to $18.

International Travel Taxes and Fees

Flights that depart from or arrive in the United States are subject to an international arrival and departure tax of $22.90 for 2025. For flights between the U.S. mainland and Alaska or Hawaii, this rate is $11.40. This fee applies to most international flights, with certain exceptions for travel to nearby destinations in Canada or Mexico. These funds support customs and immigration services.

Beyond the charges levied by the U.S., travelers must also pay taxes and fees imposed by the foreign country they are visiting. These charges can vary significantly from one country to another and may include departure taxes, security fees, or tourism taxes. These are collected by the airline as part of the ticket price and remitted to the respective foreign governments.

Carrier-Imposed Surcharges

Airlines may add their own surcharges, which are separate from government-mandated charges. Often labeled as “carrier-imposed surcharges” or “fuel surcharges,” these fees are not taxes and are not remitted to any government agency. Instead, they are a component of the airline’s total revenue.

Airlines use these charges to manage the volatility of operational costs, with fuel being a primary variable expense. By itemizing a fuel surcharge, airlines can adjust the total price in response to fluctuating fuel costs without constantly altering their published base fares.

Taxes on Award Tickets

Travelers who use frequent flyer miles to book an award ticket are still required to make an out-of-pocket payment. This is because miles or points typically only cover the base fare, while the passenger remains responsible for all applicable government-imposed taxes and fees. This includes the Flight Segment Tax, the September 11th Security Fee, and any Passenger Facility Charges. For international award travel, the passenger is also liable for U.S. and foreign government taxes.

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