Tax News Understanding the Hidden Taxes and Fees Associated with Airline Travel Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxBlogTeam Published Jul 26, 2023 - [Updated Sep 25, 2023] 3 min read Reviewed by Katharina Reekmans, Enrolled Agent Hopping on a flight can be an exciting and convenient way to reach your destination, but it’s imperative to be aware of the hidden taxes and fees that can add up quickly when you book your next trip. Before you ready yourself for the next take-off and landing, let’s define and shed light on these rates and charges that will be applied to your tickets the next time you get ready to head to the airport. Airlines might impose different types of fees and taxes for domestic and international travel. These fees can include both government-imposed fees as well as fees imposed by airline companies, including the Passenger Facility Charge (PFC), the Federal Excise Tax, the International Arrival and Departure Tax, and additional payments (from food costs to checked baggage). Let’s learn more about them: Government Taxes and Fees: There is a September 11 Security Fee (also known as U.S. Passenger Civil Aviation Security Fee) assessed by the U.S. government to help cover security costs. This fee is $5.60 per one-way trip when boarding in the U.S. It is possible that you could have multiple September 11 fees for trips that have multiple stopovers. Passenger Facility Charge (PFC): This program allows fees up to $4.50 for every eligible passenger at commercial airports controlled by public agencies. These PFCs are capped at two charges on a one-way trip or 4 charges on a round trip for a maximum total of $18. These fees are used by airports for things such as enhancing safety, security, capacity, noise reduction, or to increase air carrier competition. The Federal Excise Tax: Federal excise tax is typically imposed on the sale of things like fuel, airline tickets, heavy trucks and highway tractors, indoor tanning, tires, tobacco, and other goods and services. This 7.5% tax on profits is often hidden from the customer as it is typically part of the domestic airfare. The International Arrival and Departure Tax: These taxes are applied to all flights arriving in or departing from the United States, Puerto Rico, or the US Virgin Islands, and the total may vary based upon currency exchange rates at the time of purchase. Airline Fees: Checked baggage fees, seat selection fees (gone are the day when you can just have an aisle or window!), and change fees, to name a few, could pop up on your final receipt. You can avoid or minimize these sneaky and additional fees if you pack light and don’t exceed the weight limit for a carry-on (sometimes a tricky task!), or choose an airline with more flexible change policies. Ancillary Fees: In-flight meals, WiFi, and additional entertainment could be considered ancillary fees. A few ways to lower costs: bring your food onboard (snacks included!) or download any entertainment beforehand so you don’t need to take out your wallet during your next flight. Hidden Booking Charges: When booking your flight, you may incur additional fees from online travel agencies or third-party booking platforms (like Expedia, Travelocity, Orbitz, Kayak, and Hotels.com). These fees can include service charges, convenience fees, or booking fees. To avoid these extra costs, consider booking directly through the airline’s official website or contacting customer service for assistance. But there is good news: Airline Loyalty Programs can help offset some of the hidden taxes and fees. Earning and redeeming miles can lead to discounted fees or even free flights. If you understand each component of your ticket, you can avoid unnecessary expenses and make better decisions when booking your flights. Remember to research the airline’s specific policies and ensure your bag is the appropriate size and weight; these two easy tips could minimize the impact of these hidden costs. Bon voyage! Previous Post Debt Ceiling Deal Passed, Averting Government Debt Default. Find Out… Next Post Does Your State Have a Deadline Extension This Tax Season? Written by TurboTaxBlogTeam More from TurboTaxBlogTeam 12 responses to “Understanding the Hidden Taxes and Fees Associated with Airline Travel” I��m not sure where you are getting your information, but good topic. I must spend some time learning much more or working out more. Thank you for fantastic information I used to be on the lookout for this information for my mission. http://www.itestcomments123.com Reply There are a lot of necessaries in life. Food is necessary. Shelter is necessary. When you spend a Lot of Money on things you want, it is a personal choice. When you have to spend a Lot of Money on what is necessary it can be quite frustrating! Travel and Airfare is a necessary part of life for a lot of people. Getting Cheaper Airfare can make this necessary part of life less frustrating. Reply How can you miss the increase in airline travel fees? How does it help us to see this breakdown on where the funds supposedly go? Basically, they come out of our pockets. Nice little interactive graphic. Applause to designer. Reply Very nice post. I just stumbled upon your blog and wished to say that I have truly enjoyed surfing around your blog posts. In any case I’ll be subscribing to your rss feed and I hope you write again very soon! Reply What’s Happening i’m new to this, I stumbled upon this I have found It absolutely useful and it has helped me out loads. I am hoping to contribute & help different customers like its helped me. Good job. Reply Were you a skilled reporter? You write quite well. Reply You sound like a perfectionist. Great weblog and fantastic writing abilities. Reply I believe this is among the most significant information for me. And i am happy reading your article. But should statement on some common issues, The web site style is wonderful, the articles is truly excellent : D. Just right job, cheers Reply Hi Jadan, We are glad that you found this post useful. Continue to check for more interesting topics. Thank you, Lisa Lewis Reply A million drevirs are exploiting loophole in road tax payments. Jan 22, 2008 . If drevirs skip a month’s tax and renew their disc at the . only a335000 a year each in unpaid road tax 97 barely enough to cover the cost .. Don’t know how these can be called “hidden”, they are listed plain as day in my recipt every time I purchase a ticket. Sometimes, lumped together in a couple section but nothing stopping me from looking up the extra charges. Use of the word “hidden” is just a way of excusing laziness. And frankly, while I don’t like extra fees/taxes, I’m fine with them just summing these into a single line item and then referring me to a Web site for further information. I don’t need every bit of detail available to me on my receipt, which would just make it harder to read and after purchasing a couple tickets I wouldn’t care any longer. Reply its interesting analysis about fiscal matters is reflecting in this writing. Reply Leave a ReplyCancel reply Browse Related Articles Crypto Understanding Crypto and Capital Gains Work 7 Things You Need to Know About the New Business Report… Work Using Form 8829 to Write-Off Business Use of Your Home Tax Tips Roth 403(b) vs. Roth IRA: Which Should You Invest In? Life Interest Rates, Inflation, and Your Taxes Investments Essential Tax Tips for Maximizing Investment Gains Uncategorized TurboTax is Partnering with Saweetie to Elevate Hoop Dr… Business Small Business Owners: Optimize Your Taxes with a Mid-Y… Small Business The Benefits of Employing Your Children and the Tax Bre… Income and Investments Are Olympics Winnings Taxed?
I��m not sure where you are getting your information, but good topic. I must spend some time learning much more or working out more. Thank you for fantastic information I used to be on the lookout for this information for my mission. http://www.itestcomments123.com Reply
There are a lot of necessaries in life. Food is necessary. Shelter is necessary. When you spend a Lot of Money on things you want, it is a personal choice. When you have to spend a Lot of Money on what is necessary it can be quite frustrating! Travel and Airfare is a necessary part of life for a lot of people. Getting Cheaper Airfare can make this necessary part of life less frustrating. Reply
How can you miss the increase in airline travel fees? How does it help us to see this breakdown on where the funds supposedly go? Basically, they come out of our pockets. Nice little interactive graphic. Applause to designer. Reply
Very nice post. I just stumbled upon your blog and wished to say that I have truly enjoyed surfing around your blog posts. In any case I’ll be subscribing to your rss feed and I hope you write again very soon! Reply
What’s Happening i’m new to this, I stumbled upon this I have found It absolutely useful and it has helped me out loads. I am hoping to contribute & help different customers like its helped me. Good job. Reply
I believe this is among the most significant information for me. And i am happy reading your article. But should statement on some common issues, The web site style is wonderful, the articles is truly excellent : D. Just right job, cheers Reply
Hi Jadan, We are glad that you found this post useful. Continue to check for more interesting topics. Thank you, Lisa Lewis Reply
A million drevirs are exploiting loophole in road tax payments. Jan 22, 2008 . If drevirs skip a month’s tax and renew their disc at the . only a335000 a year each in unpaid road tax 97 barely enough to cover the cost ..
Don’t know how these can be called “hidden”, they are listed plain as day in my recipt every time I purchase a ticket. Sometimes, lumped together in a couple section but nothing stopping me from looking up the extra charges. Use of the word “hidden” is just a way of excusing laziness. And frankly, while I don’t like extra fees/taxes, I’m fine with them just summing these into a single line item and then referring me to a Web site for further information. I don’t need every bit of detail available to me on my receipt, which would just make it harder to read and after purchasing a couple tickets I wouldn’t care any longer. Reply