US charter taxes and fees

A charter quote starts with the cost of the aircraft and crew for your trip. On top of that come federal taxes, plus the charges that airports, private terminals and service providers make along the way. Knowing which is which makes quotes far easier to compare.

Most US charters carry two federal taxes, the same ones that apply to an airline ticket. One is 7.5% of the amount paid for the flight. The other is a flat tax per passenger for every takeoff and landing. International trips replace the percentage tax with a per-passenger arrival and departure tax, and they add customs and agricultural inspection fees.

Altivo's US quotes are all-in, in US dollars, with federal excise tax and segment fees already included in the total. For scale, a light jet typically charters for $5,500 to $9,850 per hour for the whole aircraft, before taxes and fees. A midsize jet runs about $9,790 to $10,840. The sections below explain what is added to that figure and why.

Section 4261 of the Internal Revenue Code imposes a tax equal to 7.5% of the amount paid for taxable transportation of persons by air. Section 4262 defines taxable transportation as a flight that begins in the United States or the 225-mile zone and ends in the United States or that zone. The zone covers the parts of Canada and Mexico close to the US border.

On a charter, the tax is charged on the price of the whole aircraft, not per seat. Charter a jet for six people and the 7.5% is calculated once on the charter price. The law places the tax on the person making the payment, so it appears on your quote and invoice rather than being absorbed by the operator.

The 7.5% rate is fixed in the statute. Unlike the per-passenger amounts below, it is not indexed to inflation. The FAA's 2026 summary of aviation excise taxes lists the domestic passenger ticket tax at 7.5%.

The second federal tax is the domestic segment tax. A segment is one takeoff and one landing, and the tax is charged per passenger, per segment. For calendar year 2026, IRS Revenue Procedure 2025-32 sets it at $5.30. The amount is indexed to inflation, and the IRS publishes a new figure each year.

Segments add up on a charter. Four passengers flying nonstop from New York to Palm Beach make four passenger segments, or $21.20 in 2026. If the same trip stops for fuel, each passenger flies two segments and the total becomes $42.40.

The segment tax does not apply to a segment that begins or ends at a rural airport. Under section 4261(e), an airport qualifies for a calendar year if fewer than 100,000 commercial passengers departed from it two years earlier. It must also meet one more test: it is not within 75 miles of a larger airport, it was receiving Essential Air Service subsidies when the rule was enacted, or it is not connected by paved roads to another airport. The 7.5% tax still applies on those flights.

A flight between the United States and an overseas destination generally does not pay the 7.5% tax on the international journey. Instead, each passenger pays an international arrival and departure tax. Rev. Proc. 2025-32 sets it at $23.40 per person for 2026, for flights that begin or end in the United States. A round trip abroad includes a departure and an arrival, so expect to pay it twice.

Nearby destinations can work differently. Because taxable transportation includes the 225-mile zone, a short flight to a Canadian or Mexican city close to the border can be taxed like a domestic flight, with the 7.5% tax and segment fees. The international tax does not apply to a trip that is fully taxable under the percentage tax. Your quote should show which treatment applies.

Flights between the mainland and Alaska or Hawaii have their own rate. For 2026 the IRS sets it at $11.70 per person, charged on departures only, and the FAA's 2026 rate table lists the same figure.

International arrivals also carry government inspection fees, which are passed through on the quote. US Customs and Border Protection's notice for fiscal year 2027, effective 1 October 2026, lists a commercial aircraft passenger arrival fee of $7.61. USDA APHIS lists its international air passenger fee for agricultural inspection at $3.98. Which fees apply depends on the aircraft and the routing.

Every US flight Altivo arranges is operated by an FAA Part 135 (or Part 121) air carrier, and that carrier is named on the quote and the contract. The carrier holds operational control: it supplies the aircraft, employs and directs the crew, and flies under its own certificate. When you pay a carrier to fly you, you are buying taxable air transportation, so the 7.5% tax and segment fees apply.

Part 91 is the FAA's general operating rule, used for private flying such as an owner flying their own aircraft. It is tempting to assume Part 91 means no tax, but the IRS does not decide the question by FAA rule part. It applies a facts-and-circumstances test of who has possession, command and control of the aircraft. That test weighs who controls the pilots and crew, who holds title and registration, who insures the aircraft and who bears the operating risk. In Chief Counsel Advice, the IRS said it does not matter whether a flight is operated under Part 91, Part 135 or another part, citing Revenue Ruling 78-75.

In practice, owners who fly their own aircraft with crew they control are generally not buying transportation, so they do not pay the ticket tax. A Part 91 flight provided by someone else can still be taxable. Payments an owner makes to a management company for aircraft management services have their own exemption, and fractional owners pay a fuel surtax instead. Both are covered below.

The tax code contains several exemptions. The one charter clients use most is the small aircraft rule in section 4281. The ticket and segment taxes do not apply to an aircraft with a maximum certificated takeoff weight of 6,000 pounds or less, unless it flies an established line or is a jet. Helicopters and propeller aircraft are not jets under this rule. Many light helicopter and piston charters are therefore exempt, while every jet is taxed. With helicopters typically chartering for $1,490 to $4,510 per hour, the exemption can matter on a short hop.

Other exemptions cover air ambulance flights that provide emergency medical services, flights used only for skydiving, and certain flights for mineral, oil, gas or timber work. The section 4261 taxes also do not apply to a seaplane segment that takes off from and lands on water.

Fractional programs operating under Part 91 Subpart K are outside the ticket tax. Their fuel carries a surtax of 14.1 cents per gallon instead, which the FAA lists in its 2026 rate table. Amounts an aircraft owner pays for management services are exempt under section 4261(e)(5), and the IRS issued final regulations on that exemption in 2021.

None of these exemptions applies to a standard jet charter on a Part 135 carrier. Expect the 7.5% tax and segment fees on every domestic jet charter.

Beyond taxes, a charter price reflects what the operator spends to run your trip. DOT's air charter broker rule, 14 CFR Part 295, requires a broker to name the operating carrier before you contract. On request, the broker must also disclose the total cost including fees and taxes, plus third-party charges such as fuel and landing fees.

Typical line items: landing fees set by each airport, and FBO handling or facility fees for the private terminal and ground services. Ramp or parking fees apply while the aircraft waits. Crew overnight costs cover hotel and meals when the crew stays at your destination. Repositioning covers flying the aircraft to your departure airport, or home again, when it is not based there.

Some items depend on the day. De-icing is charged when the weather requires it and can be a large item for a big cabin on a cold morning. Wi-Fi is billed by usage or as a flat charge. Catering is ordered to your request. International trips add customs, immigration and agricultural inspection fees, plus any overtime charges for arrivals outside normal hours.

Start with the operator. The broker must disclose the corporate name of the air carrier flying your trip before you contract. Check that the carrier holds an FAA Part 135 or Part 121 certificate, and that the aircraft type matches your request.

Next, check the trip itself: flight time on each leg, any repositioning legs, the passenger count and the number of segments. Passenger count and fuel stops change the segment tax, so the quote should be updated if either changes.

Then confirm what the total includes. On Altivo's US quotes, the 7.5% federal excise tax and segment fees sit inside the total. Ask how variable items such as de-icing, extra catering, Wi-Fi and international fees are handled, and read the cancellation terms. A quote that is lower only because it leaves out taxes is not cheaper. It is incomplete.

Compare like with like: the same aircraft category, the same operator standards and the same inclusions. A super-midsize jet at $11,770 to $13,040 per hour and a heavy jet at $15,070 to $18,480 per hour are different products, and the 7.5% tax rises with the price.