What Is the U.S. Flight Segment Tax and How Is It Calculated?

The U.S. flight segment tax is a federal excise tax applied to each flight segment on a passenger’s itinerary. This tax helps fund the national aviation system, including the Federal Aviation Administration (FAA). Unlike taxes based on a percentage of the ticket price, the flight segment tax is a fixed fee charged for each takeoff and landing.

Calculating the Flight Segment Tax

The calculation of the flight segment tax is based on the number of individual flights, or “segments,” in an itinerary. A flight segment is defined as a single takeoff and a single landing. This means a non-stop flight from one city to another is one segment, while a journey with a connection involves two segments.

To determine the total tax, you multiply the number of segments by the current rate. For 2025, the domestic flight segment tax is $5.20 per segment. For example, a round-trip itinerary from Chicago to San Francisco with a connection in Denver on both the outbound and return journeys has a total of four segments.

The total flight segment tax for this itinerary would be four segments multiplied by the $5.20 rate, resulting in a total of $20.80. This amount is collected by the airline at the time of ticketing and is listed separately in the tax breakdown on a passenger’s receipt.

Scope of Application

The flight segment tax primarily applies to domestic air travel, which includes flights operating within the continental United States. The tax is also levied on flights within a “225-mile zone,” which covers parts of Canada and Mexico within 225 miles of the U.S. border, treating these short cross-border flights similarly to domestic ones.

Flights to and from Alaska and Hawaii have specific rules. A domestic segment that begins or ends in Alaska or Hawaii is subject to the segment tax. However, it is also subject to a special U.S. Transportation Tax rate of $11.40 for 2025, instead of the standard 7.5% domestic transportation tax. International flights are subject to a different tax structure.

Exemptions from the Tax

Specific situations exist where the flight segment tax may not apply. A common scenario involves award travel using frequent flyer miles or loyalty points. When a ticket is purchased this way, the 7.5% federal excise tax on the airfare is waived because no fare is paid.

However, fixed-rate government-imposed taxes and fees still apply to award tickets. This includes the flight segment tax, the September 11th Security Fee, and any applicable Passenger Facility Charges. Travelers should anticipate paying these out-of-pocket costs even when using miles. Less common exemptions may be available for flights on certain small aircraft or for official government purposes.

Related Federal Aviation Taxes

The flight segment tax is one of several federal charges on an airline ticket. These are collected by airlines and remitted to government agencies to fund the aviation system. Understanding these other charges provides a more complete picture of air travel costs.

Other prominent taxes and fees include:

• The U.S. Domestic Transportation Tax, which is 7.5% of the base fare for domestic flights.
• The Passenger Facility Charge (PFC), a local fee of up to $4.50 per flight segment, capped at $18.00 per round trip, to fund airport infrastructure projects.
• The September 11th Security Fee, a flat fee of $5.60 per one-way trip that funds the Transportation Security Administration (TSA).
• The U.S. International Arrival/Departure Tax, which is $22.90 for 2025. This same rate also applies to flights between the continental U.S. and territories like Puerto Rico and the U.S. Virgin Islands.