Flight Ops HQ

Glossary

Federal Excise Tax (FET)

Federal excise tax is a U.S. government tax on air transportation charges for many domestic charter flights, collected by the operator and reported on IRS Form 720. The applicable rate and taxable base are set in federal tax law—not by brokers.

Why it matters

Why federal excise tax (fet) matters

FET shows up on most domestic charter invoices—if two proposals differ only because one lists tax separately, you are comparing quote styles, not operators.

Cost

How it affects cost

Federal law sets the rate and taxable base. Repositioning, fuel surcharges, and catering treatment can change what counts toward FET—brokers should explain their line-item structure, not ask you to guess.

Example

A quick example

Invoice A: $38,000 transportation + FET line. Invoice B: $41,200 all-in. Ranking A as cheaper without opening the tax lines is how buyers pick the wrong proposal.

Related terms

Other terms to know

Common questions

Is FET always charged on private charter?

Many domestic U.S. charter transportation charges are subject to FET under federal tax rules. International legs and certain fee treatments differ. Your quote should state tax treatment explicitly.

Is FET included in all-in quotes?

Sometimes bundled, sometimes itemized. All-in and plus-tax quotes are not the same. Ask which structure you are reading before you compare brokers.

Does repositioning count toward FET?

Tax treatment depends on how charges are structured on the invoice. Ask whether positioning hours sit inside or outside the transportation charge used for FET.

Last reviewed May 2026. Estimates use planning assumptions that we revisit periodically.