Along with traditional income and payroll taxes, airlines and their customers (passengers and shippers) pay many special taxes and fees to a variety of authorities, both at home and abroad. Among the stated purposes of these taxes and fees are homeland (national) security, environmental protection, disease control, infrastructure enhancement, airport and airway operations and maintenance, and agency financing. See The Taxation of Air Transportation by Dr. Kenneth Button for an in-depth review.
U.S. and foreign taxes have grown in number, amount, and scope since the advent of air transport. The amount a passenger pays in taxes and fees on a ticket varies according to his itinerary, including the number of times he or she boards a new flight and at what airports.
The following table illustrates the application of government-imposed taxes and fees on domestic air travel. The fare is hypothetical; taxes and fees shown do not include those levied directly on the airline (e.g., income, property, franchise, sales/use, payroll, fuel).
| Sample Round-Trip Itinerary: Peoria, IL (PIA) - Raleigh/Durham, NC (RDU) via Chicago O'Hare (ORD) |
| Base Airline Fare |
$300.00 |
| : Federal Ticket (Excise) Tax (7.5%) |
22.50 |
| : Passenger Facility Charge (PIA) |
4.50 |
| : Federal Flight Segment Tax (PIA-ORD) |
3.60 |
| : Federal Security Surcharge (PIA-ORD) |
2.50 |
| : Passenger Facility Charge (ORD) |
4.50 |
| : Federal Flight Segment Tax (ORD-RDU) |
3.60 |
| : Federal Security Surcharge (ORD-RDU) |
2.50 |
| : Passenger Facility Charge (RDU) |
4.50 |
| : Federal Flight Segment Tax (RDU-ORD) |
3.60 |
| : Federal Security Surcharge (RDU-ORD) |
2.50 |
| : Passenger Facility Charge (ORD) |
4.50 |
| : Federal Flight Segment Tax (ORD-PIA) |
3.60 |
| : Federal Security Surcharge (ORD-PIA) |
2.50 |
| Total Taxes and Fees |
$64.90 |
| Taxes as % of Fare |
21.6% |
| Taxes as % of Ticket |
17.8% |
Foreign-levied aviation taxes are numerous and varied. The burden is exacerbated by tax "competition" between the U.S. and foreign governments, as well as local airport authorities, and has grown with the advent of post-Sept. 11 security fees. The most comprehensive and current source of tax information available is the IATA List of Ticket and Airport Taxes & Fees. Contact the International Air Transport Association (IATA) directly for pricing information.