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Welcome to the Airline Ticket Tax Project – a study of ticket taxes and user fees added directly to airline tickets. We publish ticket tax statistics in order to inform debate and support policymaking. We do this by analyzing actual ticket records, retroactively computing taxes and other government fees. We believe this to be the only broad-based analysis of ticket taxes that uses a representative sample of actual tickets. The Airline Ticket Tax Project is a research effort in the MIT Global Airline Industry Program. For more information about the project, please contact Joakim Karlsson. Summary of research results The figure below shows the average base fare (BF), total taxes and fees (TTF), and the effective tax rate (ETR) for U.S. flights within the 48 contiguous states. ![]() The dollar value of total taxes and fees has remained relatively constant in real terms. The effective tax rate – the relative share made up by these taxes – has increased from 11% in 1993 to 16% by 2005. It has remained relatively unchanged since then. The increase was due to a significant reduction in airline base fares (a 34% decrease from 1993 to 2005) and the 2002 introduction of a security fee. 2010 update The average effective tax rate for 2010 was 16.0%. From 2009 to 2010, base fares increased by 9% in real terms. Total taxes and fees added $52.86 to the average base fare in 2010, up from $50.91 in 2009. Taxes and fees remain below the 2002 peak of $55.24. Note: All results are expressed in 2010 dollars, to adjust for inflation. |
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Last updated: 04/28/2012 |
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