Federal taxes and fees on an airline ticket in the United States typically add about 18% to 20% on top of the base fare. On a domestic ticket, that total is built from four main charges: a 7.5% federal excise tax, a flat per-segment tax, a TSA security fee, and airport-imposed Passenger Facility Charges. International itineraries pile on departure and arrival taxes plus several user fees, and foreign governments add their own charges once you leave U.S. airspace.
The 7.5% Federal Excise Tax
The largest single tax on a domestic airline ticket is the federal excise tax of 7.5% on the amount paid for air transportation.1Office of the Law Revision Counsel. 26 USC 4261 – Tax Imposed On a $300 base fare, that’s $22.50 before any other charge is applied.
The 7.5% applies to the full amount paid for transportation, not just the figure the airline labels “base fare.” Carrier-imposed surcharges bundled into getting you from one place to another count as part of the taxable amount. Separately purchased extras like checked baggage or seat upgrades generally are not subject to this tax.
The same tax also reaches flights between the U.S. and points in Canada or Mexico within 225 miles of the nearest point in the continental United States.2eCFR. 26 CFR 49.4262-1 – Taxable Transportation Those short cross-border hops are taxed as domestic.
Federal Segment Tax
On top of the percentage charge, the government adds a flat fee for every flight segment on your itinerary. A segment is one takeoff and one landing. For 2026, the segment tax is $5.30 per passenger per segment.3Internal Revenue Service. Instructions for Form 720 – Quarterly Federal Excise Tax Return
This is where connecting flights cost you extra. A nonstop round trip has two segments and adds $10.60. A round trip with one connection in each direction has four segments and adds $21.20. The rate is adjusted annually for inflation.4Airlines For America. U.S. Government-Imposed Taxes on Air Transportation
TSA Security Fee
The September 11 Security Fee funds TSA screening operations. The charge is $5.60 per one-way trip originating at a U.S. airport, capped at $11.20 for a round trip no matter how many connections you make.5Transportation Security Administration. Security Fees Unlike the segment tax, adding a layover doesn’t raise it. The fee applies to any trip beginning at a U.S. airport, so outbound international flights are included.
Passenger Facility Charges
Passenger Facility Charges are airport-specific. Individual airports apply to the FAA for permission to collect PFCs to fund eligible projects like new terminals, runway expansions, or noise mitigation. The maximum any airport can charge is $4.50 per boarding passenger, and not every airport charges the maximum.6Federal Aviation Administration. Passenger Facility Charge (PFC) Program
Federal law caps PFC collection at two charges per one-way trip and four per round trip, so the maximum is $18.00 per passenger on a round trip.7GovInfo. 49 USC 40117 – Passenger Facility Charges A nonstop round trip between two airports that each charge $4.50 costs $9.00 in PFCs; add a connecting hub each way and the total hits $18.00.
What a Domestic Ticket Actually Looks Like
Here’s a 2026 round trip from Peoria to Raleigh-Durham with a connection at Chicago O’Hare each way, from an Airlines for America breakdown:4Airlines For America. U.S. Government-Imposed Taxes on Air Transportation
- Base fare: $325.21
- 7.5% excise tax: $24.39
- Segment taxes (4 segments × $5.30): $21.20
- TSA security fees (2 one-way trips × $5.60): $11.20
- PFCs (4 enplanements × $4.50): $18.00
- Total taxes and fees: $74.79
- Total ticket price: $400.00
Taxes and fees made up 18.7% of the final price. A nonstop round trip on the same base fare would shave off $10.60 in segment taxes and up to $9.00 in PFCs, meaningfully shrinking the government’s share.
Additional Taxes on International Flights
Cross-border itineraries carry more charges. The U.S. international departure and arrival taxes are each $23.40 per passenger for 2026.3Internal Revenue Service. Instructions for Form 720 – Quarterly Federal Excise Tax Return A round trip starting and ending in the U.S. triggers both, adding $46.80 before any foreign charges. These taxes do not apply to passengers transiting through the U.S. between two foreign points.4Airlines For America. U.S. Government-Imposed Taxes on Air Transportation
International arrivals into the U.S. carry three additional user fees:
- Customs User Fee of $7.39 per arriving passenger, collected by U.S. Customs and Border Protection to fund inspection operations.8U.S. Customs and Border Protection. User Fee Table
- APHIS User Fee of $3.84 per international air passenger, funding agricultural quarantine and inspection.9Animal and Plant Health Inspection Service. Agricultural Quarantine and Inspection (AQI) User Fees Explained
- Immigration User Fee, a per-passenger charge funding immigration inspection, set by regulation and adjusted periodically.
Foreign governments then add their own charges. Value-added taxes, tourism levies, airport departure taxes, and foreign security fees vary widely by country. U.S.-imposed charges alone on an international round trip can exceed $100 per passenger, with foreign taxes pushing the total significantly higher on routes to Europe, Asia, or Latin America.
Special Rules for Alaska and Hawaii
Flights to and from rural airports in Alaska and Hawaii follow a different structure. In place of the standard per-segment tax, these routes carry a separate flat-rate tax applied only to departures. The base statutory amount is $6 per departure, adjusted annually for inflation.1Office of the Law Revision Counsel. 26 USC 4261 – Tax Imposed For 2026, the inflation-adjusted rate is $11.30 per passenger.10National Air Transportation Association. ICYMI: IRS Announces 2026 FET Rates
International flights between the mainland and Alaska or Hawaii get a reduced departure and arrival tax of $11.70 instead of $23.40.4Airlines For America. U.S. Government-Imposed Taxes on Air Transportation The 7.5% excise tax still applies normally.
Award Tickets and Purchased Miles
Redeeming miles for a “free” ticket doesn’t eliminate taxes. You still owe the TSA security fee, PFCs, and any applicable international fees, because those are tied to the act of flying rather than the amount paid. What you avoid is the 7.5% excise tax, since there’s no cash fare to tax.
Buying miles outright flips the picture. Since 1997, a 7.5% federal excise tax has applied to amounts paid for the right to purchase mileage awards redeemable for domestic air transportation. The taxable event is the purchase itself, whether or not the miles are ever redeemed for a flight. The buyer pays, and the airline collects and remits. If purchased miles are later redeemed for non-transportation goods, international flights, or other non-taxable purposes, the purchaser can file a claim for a refund of the excise tax paid on those specific miles.
Which Taxes Are Refundable if You Don’t Fly
If you buy a non-refundable ticket and never use it, some government-imposed fees still must be refunded even when the base fare is forfeited.
Refundable on unused non-refundable tickets: the TSA Security Fee, Customs User Fee, Immigration User Fee, and APHIS User Fee. Not refundable: the 7.5% domestic excise tax, the segment tax, and Passenger Facility Charges.
The refundable charges are user fees for services you never actually received, like screening and customs inspection. The non-refundable charges are excise taxes assessed on the purchase of transportation itself, which took place whether or not you boarded. On a domestic non-refundable ticket, the refundable piece is modest, just $5.60 for a one-way TSA fee, but it adds up more on an unused international ticket.
Reading Tax Codes on Your Receipt
Airlines break out taxes and fees using two-letter industry codes. If you want to verify what you were charged, these are the ones to look for:
- US: the 7.5% domestic excise tax, or the international departure/arrival tax on international tickets.
- ZP: federal segment tax.
- AY: TSA Security Fee.
- XF: Passenger Facility Charge, usually followed by the three-letter airport code and the amount for each airport.
- XA: APHIS User Fee on international arrivals.
- XY: Immigration User Fee on international arrivals.
- YC: Customs User Fee on international arrivals.
If the fees on your receipt don’t match what your itinerary suggests, contact the airline before your travel date. Overcharges happen occasionally, particularly on complex multi-city itineraries where the system may apply an extra PFC or segment tax incorrectly.