Federal Excise Tax on Private Charter: What to Expect

When you book a private charter flight inside the United States, the listed aircraft price is almost never the final number. The federal excise tax (FET) is a US government levy that applies to most domestic commercial air transportation, including on-demand charter, and it shows up as a separate line item at checkout.

What Is the Federal Excise Tax?

The federal excise tax on air transportation is collected under Internal Revenue Code Section 4261. For domestic commercial passenger flights, the standard rate is 7.5% of the amount paid for transportation, plus a flat per-segment fee that adjusts annually with inflation. The IRS defines a “segment” as one takeoff and one landing, so a one-way private charter from one airport to another is a single segment.

These taxes are collected by the operator or the platform handling the transaction and remitted directly to the US Treasury. They fund the Airport and Airway Trust Fund, which finances FAA operations, air traffic control, and infrastructure.

Which Charter Flights Are Subject to FET?

FET applies to “taxable transportation”: flights on aircraft operated for hire between US airports. For practical purposes, this means:

– Part 135 on-demand charter: subject to FET at 7.5% plus the per-segment fee.

– Purely international legs: generally not subject to US FET if neither the origin nor the destination is a US airport. A flight from Miami to Nassau clears US airspace but both cities count as international-leg endpoints.

– Mixed domestic and international routing: the domestic portion may be taxable even if the ticket covers a broader itinerary.

Fractional ownership arrangements and dry-lease agreements where the passenger is also the operator are typically not subject to FET, but the legal analysis is specific to each arrangement. For a straightforward on-demand charter booking: the kind available on SkyAccess: the 7.5% domestic FET applies to the aircraft price for US-to-US flights.

How FET Appears on SkyAccess

SkyAccess lists the aircraft price (the operator charge plus the SkyAccess marketplace fee) as the primary figure on each empty leg and charter listing. At checkout, taxes and fees, including the applicable FET and any per-segment fee, are itemized separately before you pay. The booking summary card shows the charter base, then taxes and fees as a distinct line, so you see the full total before completing the transaction.

SkyAccess does not embed FET into the listed price and does not market any flight as “itemized” or “tax-inclusive.” Every applicable government levy appears at checkout alongside the aircraft charge.

What the Per-Segment Fee Looks Like

In addition to the 7.5% rate, the IRS charges a flat per-segment fee. For 2026, this is $5.00 per segment. On a single-segment charter (one takeoff, one landing), that adds $5.00 on top of the percentage-based tax. On a two-leg round trip treated as two separate segments, the fee applies to each segment.

For a light jet empty leg priced at $4,500, the FET calculation looks like this:

– Aircraft price: $4,500

– 7.5% FET: $337.50

– Per-segment fee: $5.00

– Total before any other fees: $4,842.50

The actual checkout total also reflects the SkyAccess marketplace fee and any other applicable charges specific to the flight.

International Flights and FET

SkyAccess lists empty legs and charter flights globally. For flights that depart from a non-US airport or arrive at a non-US airport, US FET does not apply. European and other international jurisdictions have their own taxes and levies, which vary by country. Those appear at checkout in the same itemized format as applicable.

Why FET Exists

The federal excise tax on air transportation dates to 1941. The current 7.5% structure for domestic passenger transportation was established in 1997 as part of a broader aviation funding framework. The Airport and Airway Trust Fund, which FET finances, funds FAA capital programs, ATC modernization, and airport improvement grants. Private charter flights contribute to that fund alongside commercial airline passengers.

Comparing Total Cost on SkyAccess

Because FET is additive, comparing empty leg prices across platforms requires looking at total checkout cost, not listed aircraft prices alone. SkyAccess displays the itemized breakdown at checkout so the comparison is straightforward. The empty leg savings versus a full charter: typically 25 to 75% below a comparable full charter: still hold after taxes, because the tax applies as a percentage of the aircraft charge, and the aircraft charge on an empty leg is already lower.

Common Questions

Does FET apply to empty leg flights? Yes. An empty leg is a commercial Part 135 charter flight. FET applies to the aircraft price for domestic US flights.

Who remits FET to the IRS? The operator or the platform collecting the payment is responsible for remitting the tax. Passengers pay it at checkout; they do not file separately.

Is FET the same as a departure tax? No. Departure taxes are country-specific levies (common in Europe and Latin America). US FET is a federal excise tax on the commercial transportation charge, not a per-departure fee collected at the airport.

Can FET be avoided? For a standard on-demand Part 135 charter between two US airports, no. Dry-lease arrangements eliminate FET but require the passenger to act as the operator, which has its own certification and liability implications.

Where to See Empty Leg Prices

SkyAccess shows 5,000+ live empty-leg listings from 900+ FAA Part 135 (and international equivalent) certified charter operators. Every checkout displays the aircraft charge and the applicable taxes: including FET for US domestic flights: as separate line items before you confirm.

FAQ Schema Questions:

1. What is the federal excise tax on private charter flights?

2. Does FET apply to empty leg flights?

3. How much is the federal excise tax on private jet charter?

4. Who pays the federal excise tax on charter flights?

5. Does FET apply to international private jet flights departing the US?