Air Transportation Excise Tax Filing — Form 720, 2026
Airlines, charter operators, and air freight carriers must collect and remit federal air transportation excise taxes — including the 7.5% domestic ticket tax, $5.30 per-segment fee, $23.40 international departure tax, and cargo taxes — on Form 720 quarterly.
- Domestic passenger tax: 7.5% of ticket price + $5.30/segment (IRS No. 26)
- International departure & arrival: $23.40/person (IRS Nos. 27 & 28)
- Air cargo: 6.25% of amount paid for domestic air freight (IRS No. 29)
- EasyFile720 covers all four air transportation IRS numbers in one workflow
All Air Transportation Taxes Covered by EasyFile720
Four IRS numbers cover air transportation, split between passenger taxes (domestic and international), cargo, and fractional aircraft. EasyFile720 applies the correct rate to each category automatically.
The primary air transportation tax — 7.5% of the amount paid for domestic air transportation, plus a $5.30 per flight segment fee. A "segment" is a single takeoff and single landing. The segment fee is $5.30 for most routes; flights to/from Alaska and Hawaii are subject to a $11.70 per-departure tax under IRS No. 27 instead.
Who files: Airlines, charter carriers, and any person who collects amounts for domestic air transportation of persons
A flat per-person tax applies to flights departing the U.S. to international destinations (IRS No. 27) and flights arriving in the U.S. from international origins (IRS No. 28). The rate is adjusted annually for inflation. For flights to/from Alaska or Hawaii, different rules apply for legs that are purely domestic.
Who files: Airlines and charter operators departing from or arriving in the U.S. to/from international destinations
Applies to amounts paid for the transportation of property (cargo and freight) by air within the U.S. The 6.25% tax is computed on the total charge to the shipper for the air transportation, excluding separately stated fuel surcharges under limited circumstances. International cargo is generally not subject to this tax.
Who files: Air cargo carriers, freight airlines, and integrated carriers (FedEx, UPS air services) for domestic air freight revenue
Charter flights and fractional ownership programs (e.g., NetJets-style programs) are subject to the 7.5% tax on amounts paid for domestic air transportation. Special rules apply to fractional ownership: the owner of a fractional share pays the tax on amounts paid to the fractional program operator for flight hours used.
Who files: Charter operators who collect payment from passengers, and fractional ownership program managers who collect management and flight fees
Frequent flyer award tickets: When a passenger redeems frequent flyer miles for a domestic ticket, the airline is still required to pay air transportation tax — calculated on the fair market value of the transportation, or alternatively at a flat rate of 7.5% of the award's cash equivalent value. This is a common compliance gap for carriers with large loyalty programs.
Complete 2026 Air Transportation Tax Rate Table
Rates are current for 2026. The international departure/arrival flat fee is adjusted annually by the IRS for inflation via Revenue Procedure each year.
| Tax Type | IRS No. | 2026 Rate | Tax Base | IRC Section |
|---|---|---|---|---|
| Domestic passenger ticket tax | 26 | 7.5% | Amount paid for domestic air transportation | § 4261(a) |
| Domestic flight segment fee | 26 | $5.30/segment | Per takeoff-and-landing leg | § 4261(b) |
| International departure tax | 27 | $23.40/person | Per departing passenger | § 4261(c)(1) |
| International arrival tax | 28 | $23.40/person | Per arriving passenger | § 4261(c)(1) |
| Domestic air cargo / freight | 29 | 6.25% | Amount paid for domestic air freight | § 4271 |
| Alaska/Hawaii reduced segment | 26 | $5.30/segment | Per segment (same rate, specific routing rules) | § 4261(b)(2) |
📐 Worked Example — Domestic Passenger Tax
A charter operator carries 200 passengers on domestic routes in Q3. Average ticket price is $420, with an average of 1.8 segments per passenger.
EasyFile720 calculates the 7.5% and segment fee separately on Form 720 — enter your total taxable ticket revenue and total segment count and the math is done for you.
Who Is Required to File Air Transportation Taxes?
The tax is imposed on the amount paid for air transportation. The person who collects that payment — the airline, charter operator, or ticket agent — is the one required to remit it.
Commercial Airlines
All certificated air carriers selling passenger tickets for domestic and international flights must collect and remit the passenger ticket tax, segment fees, and international departure/arrival taxes quarterly on Form 720.
Charter Operators
Part 135 charter operators who receive payment for passenger air transportation are responsible for collecting and remitting the 7.5% tax and $5.30 segment fee from their charter customers, and filing Form 720 quarterly.
Air Cargo Carriers
Airlines and air freight carriers that provide domestic air cargo services and collect payment for those services must remit the 6.25% cargo tax (IRS No. 29) on the amounts paid for domestic transportation of property.
Ticket agents and OTAs: If a travel agent or online booking platform (OTA) collects the full ticket amount including tax from the passenger, the airline is generally still the party responsible for remitting the tax to the IRS — the agent collects on behalf of the airline. However, if an agent collects payment for charter flights under its own arrangements, the agent may be the person liable for the tax. Review IRC § 4291 for taxpayer liability rules.
Filing Air Transportation Taxes on Form 720
Air transportation taxes are Part I taxes — quarterly filing is required, with semimonthly EFTPS deposits mandatory if your total Part I liability exceeds $2,500 per quarter.
Gather quarterly tax collection records
Compile your total taxable ticket revenue by category: domestic passenger revenue (IRS No. 26), total segments flown, international departure and arrival passenger counts (IRS Nos. 27 & 28), and domestic freight revenue (IRS No. 29).
Enter amounts by IRS number in EasyFile720
Input your total taxable amounts for each applicable IRS number. For IRS No. 26, enter both gross ticket revenue (for the 7.5% calculation) and the total segment count (for the $5.30/segment calculation) separately — EasyFile720 handles both components on the same line.
Verify EFTPS deposit status
EasyFile720 checks whether your combined Part I liability crosses the $2,500 semimonthly deposit threshold. Airlines with high passenger volumes almost always exceed this threshold — semimonthly deposits are required by the 14th of the month following each semimonthly period.
Complete Schedule A & e-file Form 720
EasyFile720 auto-populates Schedule A with your semimonthly liabilities, cross-checks your EFTPS deposit records, and submits your completed Form 720 directly to the IRS.
📅 Quarterly Filing Deadlines
⚡ EFTPS Deposit Requirement
If your net Part I tax liability exceeds $2,500 for the quarter, semimonthly EFTPS deposits are required. For most commercial airlines and large charter operators, this threshold is crossed in the first semimonthly period. Deposits are due by the 14th day following each semimonthly period.
🛣️ Airport & Airway Trust Fund
Revenues from IRS Nos. 26, 27, 28, and 29 flow into the Airport and Airway Trust Fund under 49 U.S.C. § 9502. The fund finances FAA operations, airport improvement grants, and the National Airspace System — the infrastructure that makes commercial aviation possible.
Air Transportation Tax — Common Questions
Ready to file your air transportation excise taxes?
IRS Nos. 26, 27, 28, and 29 — all four air transportation tax lines in one guided quarterly workflow.