Air Transportation Tax: Regular vs. Alternative Method
The 2026 air transportation rates
| Tax | IRS No. | 2026 rate |
|---|---|---|
| Transportation of persons | 26 | 7.5% + $5.30 / segment |
| International air travel facilities | 27 | $23.40 ($11.70 AK/HI) |
| Transportation of property | 28 | 6.25% |
The regular method
Under the regular method, your liability for a semimonthly period is the tax you actually collected during that period. You deposit it via EFTPS on the normal schedule (when net Part I liability exceeds $2,500 for the quarter) and report it on Schedule A. It's the most intuitive approach: collect, deposit, report.
The alternative method
The alternative method bases your liability on amounts billed (for example, tickets sold) rather than amounts collected. The defining rule: tax included in amounts billed during a semimonthly period is considered collected during the first seven days of the second following semimonthly period. That lag gives carriers who bill in advance more breathing room between billing and remittance. Using it means keeping a separate accounting of the billed tax and using the alternative-method entries on Schedule A.
Side by side
| Regular method | Alternative method | |
|---|---|---|
| Liability based on | Tax actually collected | Tax billed (considered collected) |
| Timing | When payment is received | First 7 days of the 2nd following period |
| Best for | Simple, pay-as-collected | Carriers billing in advance |
| Reported on | Schedule A | Schedule A (alternative entries) |
Whichever you choose, EasyFile720 handles the Schedule A liability reporting for you. Estimate your tax first with the air transportation calculator, or read the full air transportation tax guide.
FAQ
What is the difference between the regular and alternative method for air transportation tax?▼
Under the regular method, your semimonthly deposit is based on the tax you actually collected during the period. Under the alternative method, it is based on the tax included in amounts billed during the period — and that billed tax is treated as collected during the first seven days of the second following semimonthly period, which builds in a timing lag. Both are reported on Schedule A of Form 720.
What are the 2026 air transportation tax rates?▼
For 2026: the tax on transportation of persons is 7.5% of the amount paid plus a $5.30 domestic segment fee (IRS No. 26); the international air travel facilities tax is $23.40 per arrival/departure ($11.70 for Alaska and Hawaii) under IRS No. 27; and the tax on transportation of property by air is 6.25% (IRS No. 28).
Who collects the air transportation tax?▼
The carrier or other person receiving payment for the taxable transportation collects the tax from the customer and remits it to the IRS on Form 720, typically with semimonthly EFTPS deposits when liability exceeds $2,500 for the quarter.
File air transportation tax with EasyFile720
We handle IRS Nos. 26, 27, and 28 with the 2026 rates built in, Schedule A liability tracking for either method, and IRS-authorized e-file.
This article reflects the Instructions for Form 720 (Rev. June 2026). The regular and alternative method rules are detailed and fact-specific — confirm your deposit approach with a qualified tax professional. General information, not tax advice.
