What Is the U.S. Transportation Tax?
If you spotted "U.S. transportation tax" on an airline receipt, you are looking at federal excise tax on your flight. The IRS sources we rely on do not use that exact label for a ticket line. They call it the tax on transportation of persons by air, and for international trips, the tax on use of international air travel facilities. Airlines and booking systems choose their own wording, and the IRS texts do not set rules for how a receipt must show it.
You pay it as part of the ticket price and have nothing to file. The business that took your payment collects it and reports it to the IRS on Form 720, the Quarterly Federal Excise Tax Return.
What the line on your ticket can contain
| Part of the tax | 2026 amount | When it applies | Form 720 line |
|---|---|---|---|
| Percentage tax | 7.5% of the amount paid | Taxable transportation of persons by air | IRS No. 26 |
| Domestic segment tax | $5.30 per segment | Each domestic segment, unless to or from a rural airport | IRS No. 26 |
| International air travel facilities tax | $23.40 per person | International flights that begin or end in the United States | IRS No. 27 |
| Alaska and Hawaii rate | $11.70 per person | Domestic segments beginning or ending in Alaska or Hawaii, departures only | IRS No. 27 |
A segment means a single takeoff and a single landing. So a domestic ticket with a $200 fare and one stop has $15.00 of percentage tax and $10.60 of segment tax, for $25.60 in total. That example is invented. To work through your own price, use the air transportation tax calculator. For a full breakdown of one fare, see how much tax is on a plane ticket.
The segment amount and the two per-person amounts are calendar year 2026 figures. Publication 510 says they generally increase each year for inflation.
What does the 7.5% reach beyond the fare?
Amounts paid for transportation include charges for seat selection, premium economy seating, online booking fees, layover or waiting time, and movement of aircraft in deadhead service. If a charge like these sits outside your base fare, it can still be part of what the tax is figured on.
Package tours follow the same logic. "Free" air travel included in a package holiday tour is still treated as paid for, because the package price includes a charge for it, even when advertised as free.
Who owes it, who collects it, and who files?
Three different roles are easy to confuse. The law puts liability on the traveler, but the paperwork falls on the business taking the money.
| Who | Their role |
|---|---|
| The person paying for the transportation | Liable for the tax. Pays it with the ticket. Files nothing in the ordinary case. |
| The person receiving the payment, usually the airline | Collects the tax, submits it, and files Form 720 for the quarter. |
| Travel agency selling as the airline's agent | Collects the tax and remits it to the airline, which files and pays. |
| Travel agency acting as an independent broker, selling tours on aircraft it charters | Collects the tax, files the returns, and pays it over itself. |
| Independent third party acting for the passenger, paid by the passenger, and outside the airline's control | Not required to collect the tax and pay it to the government. |
| Air carrier providing the initial segment | Becomes liable if the tax is not paid when the payment for the transportation is made, on transportation that begins or ends in the United States. |
Who collects changes in one more case. If payment is made outside the United States for a prepaid order, exchange order, or similar order, the person furnishing the initial transportation under that order must collect the tax. Resellers should read Revenue Ruling 2006-52, which Publication 510 points to on this topic.
When a ticket may not carry the tax
- Uninterrupted international air transportation. This is travel entirely by air that does not begin and end in the United States or the 225-mile zone (parts of Canada and Mexico within 225 miles of the continental U.S. boundary), with no more than a 12-hour scheduled gap at any U.S. station. The percentage and segment taxes do not reach it, though the international tax can.
- Rural airports. The $5.30 does not apply to a segment to or from one. The 7.5% still does.
- Certain special uses. Skydiving flights and certain emergency medical, forestry, and seaplane flights are among the exceptions. Our guide to air transportation tax exemptions lists them.
If you are the business collecting this tax
If you receive payment for air transportation, this tax is yours to report, usually every quarter. The tax for passengers and segments goes on IRS No. 26, and per-person international amounts go on IRS No. 27. Both are in Part I of Form 720, and semimonthly deposits are generally required unless net Part I liability for the quarter is $2,500 or less. Our air transportation tax page has the fuller picture.
EasyFile720 is an IRS-authorized e-file provider for Form 720. It has the rates for the return built in, and it walks you through entering your figures for Part I and Schedule A. The math is calculated for you, and validations catch common mistakes before you submit. Set up an account for free, with no credit card, and pay $39.95 when you file your air transportation tax online.
FAQ
Why is there a U.S. tax on a ticket I bought in another country?▼
For transportation that begins and ends in the United States, the tax applies regardless of whether the payment is made in or outside the United States. The per-person international tax is likewise imposed whether in or outside the United States, on flights that begin or end here.
Can I get this tax back if my flight was not taxable?▼
If tax was collected on air transportation that was not taxable, Publication 510 says the person who paid it may claim a refund. The collector may instead claim a credit or refund if it repaid you or has your consent.
Do free bonus tickets have this tax?▼
Not on free bonus tickets issued to customers who fully qualified. The tax does apply to amounts paid for advance bonus tickets when the customer has not yet traveled enough miles to qualify.
Does my company file anything because employees fly?▼
Not because of buying tickets. Filing falls on the person receiving the payment for the transportation. A company that charters its own flights pays the tax to the charter service, which collects and submits it.
File air transportation tax online
Create a free account with no credit card and build your return. You pay $39.95 only when you file. EasyFile720 is an IRS-authorized e-file provider, and you get an acknowledgment when the IRS accepts your return.
Sources: Instructions for Form 720 (Rev. June 2026); Form 720 (Rev. June 2026); IRS Publication 510 (Rev. December 2025). General information, not tax advice. Confirm how the rules apply to you with a qualified advisor or the IRS.
