Government taxes and fees on a typical U.S. domestic round-trip airline ticket usually add $30 to $80 on top of the base fare, and international trips add considerably more. The taxes on airline tickets in the United States include a 7.5% federal excise tax on the fare, a flat per-segment tax, a TSA security fee, optional airport-set Passenger Facility Charges, and, for international travel, a stack of customs, immigration, agricultural, and arrival/departure charges. Airlines collect all of it and remit it to the relevant agency; none of the money stays with the carrier.
The 7.5% Federal Excise Tax on the Fare
The largest single charge on a domestic ticket is a 7.5% excise tax on the base fare, authorized by 26 U.S.C. ยง 4261.1Office of the Law Revision Counsel. 26 USC 4261 – Imposition of Tax A $300 fare produces $22.50 in tax. It applies to the fare itself, not to baggage fees, seat upgrades, or other add-ons the airline sells separately. The revenue goes into the Airport and Airway Trust Fund, which pays for FAA operations such as air traffic control and airport improvement grants.2Federal Aviation Administration. Airport and Airway Trust Fund Fact Sheet
The tax covers flights that begin and end within the continental United States, plus flights within a 225-mile border zone that reaches into parts of Canada and Mexico. Flights between the mainland and Alaska or Hawaii use an apportionment: only the portion of the fare corresponding to flight over the U.S. or its territorial waters is taxed at 7.5%.3Internal Revenue Service. Air Transportation Excise Tax – Alaska and Hawaii Flights entirely within Alaska or entirely within Hawaii are taxed on the full fare.
The Per-Segment Tax
The federal government also charges a flat fee for every takeoff-and-landing pair in your itinerary. For 2026, the amount is $5.30 per passenger per segment, and the IRS adjusts it annually for inflation.4Internal Revenue Service. Revenue Procedure 2025-32 – Passenger Air Transportation Excise Tax A “segment” is one flight gate to gate. Nonstop New York to Los Angeles: one segment. One-stop through Dallas: two segments, or $10.60 in segment tax alone.
The tax applies within the continental U.S. and the 225-mile border zone. Segments that begin or end at a qualifying rural airport are exempt. A rural airport generally has fewer than 100,000 departing commercial passengers a year and sits more than 75 miles from any airport that hits that threshold.5US Department of Transportation. Federal Excise Tax – Rural Airports
The TSA September 11 Security Fee
TSA collects $5.60 per one-way trip that originates at a U.S. airport, capped at $11.20 on a round trip.6Transportation Security Administration. Security Fees It funds passenger and baggage screening. Unlike the segment tax, it is per trip, not per flight. A one-stop connection counts as one one-way trip and triggers the fee once.
Long layovers reset it. A break of more than four hours on a continental domestic trip, or more than twelve hours on an international or non-continental route, causes the fee to apply again to the next leg.7Transportation Security Administration. Passenger Fees FAQ An overnight domestic layover, for example, means paying $5.60 twice in one direction of travel.
Passenger Facility Charges
Passenger Facility Charges fund airport-specific projects like new terminals, longer runways, and noise barriers. They are not federal taxes. Each airport authority chooses whether to impose one and sets it at $1, $2, $3, $4, or $4.50 per boarding passenger, with $4.50 as the federal cap.8Office of the Law Revision Counsel. 49 USC 40117 – Passenger Facility Charges
A traveler can be charged PFCs at no more than two airports per direction, so a round trip with two PFC-charging connections in each direction tops out at $18.00. Large and medium hub airports that impose PFCs give up part of their federal Airport Improvement Program grant share in exchange.9eCFR. 14 CFR Part 158 – Passenger Facility Charges
What International Tickets Add
Crossing the U.S. border replaces the domestic segment tax with a set of higher fixed charges for customs, immigration, and agricultural inspection. These apply to arrivals and departures alike.
International Arrival and Departure Tax
For 2026, the charge is $23.40 per passenger, applied separately to the outbound and return legs of an international trip. A round trip between the U.S. and Europe generates $46.80 in this tax alone. A reduced rate of $11.70 applies to flights between the mainland and Alaska or Hawaii, and it is charged only on departure.4Internal Revenue Service. Revenue Procedure 2025-32 – Passenger Air Transportation Excise Tax Passengers transiting through a U.S. airport between two foreign cities are exempt.
Customs and Immigration User Fees
U.S. Customs and Border Protection charges $7.39 per arriving passenger for border processing. Passengers arriving from U.S. territories and possessions are exempt.10U.S. Customs and Border Protection. User Fee Table A separate $7.00 immigration user fee funds inspection services and applies to all passengers regardless of citizenship.
APHIS Agricultural Inspection Fee
The Animal and Plant Health Inspection Service collects a fee to screen international passengers and baggage for agricultural pests and diseases. Through September 30, 2026, the fee is $3.84 per passenger; on October 1, 2026, it rises to $3.98.11eCFR. 7 CFR 354.3 – User Fees for Certain International Services
Foreign Government Taxes
Destination countries impose their own departure taxes, arrival fees, and tourism levies, folded into the ticket price. The United Kingdom’s Air Passenger Duty and Germany’s aviation tax are common examples. Amounts vary widely and are set entirely by foreign governments.
Taxes on Award Tickets Booked With Miles
Miles do not eliminate government charges. On a domestic award ticket, you still owe the per-segment tax, the TSA security fee, and any PFCs, since those are flat amounts. The 7.5% excise tax is the one that drops off, because it is calculated on the amount paid for the fare, and a pure miles redemption involves no cash fare.1Office of the Law Revision Counsel. 26 USC 4261 – Imposition of Tax
International award tickets carry the full slate of arrival and departure taxes, customs and immigration fees, and APHIS charges. Airlines also frequently add carrier-imposed surcharges (often coded “YQ” or “YR” on the fare breakdown) that can run into the hundreds of dollars on long-haul routes. Those surcharges are set by the airline, not the government, and explain why an “award” ticket sometimes comes with a large cash charge at checkout.
When Taxes and Fees Are Refundable
If an airline cancels your flight and you decline rebooking, the carrier must refund the full fare including every government tax and fee and any mandatory carrier surcharge. A 2024 DOT final rule codified this at 14 CFR Part 260, making the refund automatic and prompt.12Federal Register. Refunds and Other Consumer Protections Airlines cannot keep the tax portion on the theory that a particular fee is non-refundable to them.
If you voluntarily cancel a non-refundable ticket, the rules flip. You are generally not entitled to a refund of the fare or the taxes and fees. Some airlines refund the government taxes portion as a courtesy or under their fare rules, but federal law does not require it when the cancellation is your choice and the flight operates as scheduled.13US Department of Transportation. Refunds
Why There’s No State Sales Tax on Your Ticket
No state or local sales tax appears on an airline ticket because federal law prohibits states and local governments from taxing passengers in air commerce, sales of air transportation, or gross receipts from air transportation.14Office of the Law Revision Counsel. 49 USC 40116 – State Taxation The Passenger Facility Charge is the one local-level charge Congress carved out. That’s why flying out of a high-sales-tax state costs the same in taxes as flying out of a state with none.
Reading the Taxes and Fees Line on Your Receipt
Airlines must display the total ticket price, including all taxes, fees, and mandatory carrier surcharges, more prominently than any itemized breakdown.15U.S. Department of Transportation. Buying a Ticket When you see the breakdown, the line labeled “Taxes and Fees” gathers every government charge covered above: the 7.5% excise tax, the segment tax, the TSA fee, PFCs, and any international arrival, departure, customs, immigration, and APHIS charges on your route.
A separate line for “Carrier-Imposed Fees” or “Surcharges” is money the airline sets on its own, such as fuel surcharges or booking fees. Those are not government taxes and are not regulated the same way. The distinction matters when comparing fares: government charges are identical for the same route across airlines, so any price gap comes from the base fare and the carrier’s own surcharges.