NBAA Federal Excise Taxes Guide

Updated in December 2023 to reflect the tax rates for calendar year 2024, the NBAA Federal Excise Taxes Guide provides the latest information on how federal excise taxes (FET) apply to business aircraft activity. The guide includes details on how FET applies to commercial air transportation of passengers, including the percentage tax on domestic travel and related exceptions and exclusions, domestic segment fees, and the head tax on international transportation.

Key concepts including possession, command and control; available FET exemptions; and charter broker obligations for air transportation excise taxes are explained in the context of business aircraft operations. Rules on FET are constantly evolving and the guide includes updates on topics such as FET on fractional aircraft ownership program operations and IRS legal interpretations regarding aircraft service and pilot service agreements.

The Federal Excise Taxes Guide is a comprehensive but concise reference that provides NBAA members with summary information about the applicability of excise taxes to common business aircraft operations and scenarios.

Download the NBAA Federal Excise Taxes Guide

FET Resources

Selected IRS FET Publications