Segment Fee
The domestic segment fee is a per-passenger, per-segment IRS tax on domestic commercial air transportation. The fee is small ($5.20 per passenger per segment as of 2024) but adds up on multi-leg charter trips with multiple passengers.
Also known as: domestic segment fee, passenger segment fee, irs segment fee, fet segment fee
The segment fee was introduced as part of the 1997 federal aviation tax reform to fund FAA operations. It's a flat per-passenger, per-flight-segment charge — separate from the 7.5% FET on the charter price — that the operator collects and remits to the IRS. A "segment" is one continuous flight between a takeoff and a landing; a one-stop trip is two segments.
The amount is adjusted annually for inflation. As of 2024 the fee is $5.20 per passenger per segment. For a 4-passenger empty-leg flight that's $20.80 added to the invoice; for an 8-passenger trip with one fuel stop it's $83.20 ($5.20 × 8 passengers × 2 segments).
International flights are exempt from the segment fee — they pay the International Departure Tax instead. The segment fee only applies when both the takeoff and landing for the segment are within the United States.
Frequently asked questions
- How much is the IRS segment fee on a private jet charter?
- $5.20 per passenger per segment as of 2024. The IRS adjusts the amount annually for inflation. A segment is one continuous flight between a takeoff and a landing — a one-stop trip has two segments.
Related terms
- Federal Excise Tax (FET)
The Federal Excise Tax (FET) is a 7.5% federal tax on the price of domestic commercial air transportation, including private jet charter and empty leg flights. The tax is collected by the operator and remitted to the IRS; it appears on every empty-leg booking confirmation.
- Empty Leg Flight
An empty leg flight is a one-way private jet flight sold at a discount because the aircraft has to fly without passengers to its next paid booking. Empty legs are typically priced 25–80% below retail charter, with the discount widening as the departure window narrows.
Sources
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