REGULATION · GLOSSARY
Federal Excise Tax (FET)
A 7.5% US tax on domestic commercial air transportation, plus a per-segment fee, collected by the operator and remitted to the IRS.
IN PRACTICE
FET applies to most on-demand charter flights that begin and end in the US (or in the 225-mile zone that extends into Canada and Mexico). Empty legs and pure positioning flights are exempt because there is no passenger paying for transportation.
The tax is calculated on the total amount paid for the air transportation, including pilot, fuel, catering and ground services bundled into the charter price.
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Frequently asked
What does Federal Excise Tax mean in private aviation?
A 7.5% US tax on domestic commercial air transportation, plus a per-segment fee, collected by the operator and remitted to the IRS.
Which authority enforces federal excise tax?
In the United States, the FAA (under 14 CFR) is the lead authority. In Europe, EASA sets the framework, implemented by national CAAs. Operators flying internationally must comply with the regulation of every state they operate to.
Does federal excise tax affect the price or availability of a charter?
Indirectly, yes. Regulatory requirements drive operator costs, callout times and route options, which flow through to charter pricing and aircraft availability.
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