Airport Tax

DEFINITION of 'Airport Tax'

A tax levied on passengers for passing through an airport. The tax is generally paid for use of the airport, and is one of a number of taxes that are typically included in the price of an airline ticket. Often, the bulk of the fee is called the landing fee, paid by the aircraft and transferred to the customer via the ticket price, to land at a specific airport. These fees will vary greatly depending on the popularity of the airport. Revenue from airport taxes fund is used for facility maintenance.

BREAKING DOWN 'Airport Tax'

The amount of airport tax levied on a passenger depends on a number of factors, most prominently whether the flight is a domestic or international one. International flights typically carry a higher airport tax. Also, fees can range depending on several other factors, such as the size of the plane and time of day.

RELATED TERMS
  1. Airport Revenue Bond

    A bond issued by a municipality or airport authority that uses ...
  2. Taxes

    An involuntary fee levied on corporations or individuals that ...
  3. Direct Tax

    A tax that is paid directly by an individual or organization ...
  4. Transfer Tax

    Any kind of tax that is levied on the transfer of official documents ...
  5. Land Value Tax - LVT

    A tax on the value of a piece of land. Land value tax inherently ...
  6. Green Levy

    A tax imposed by a government on sources of pollution or carbon ...
Related Articles
  1. Home & Auto

    3 Things Travelers Wish They Had While Flying

    Traveling can sometimes be a hassle if things don't go as smoothly as you'd like. Having certain luxuries can make the trip a little easier.
  2. Investing

    Will Uber Replace Airport Taxis?

    Is Uber ready to move into airport cab service or is it too soon? The company is burning investor cash at astronomical rates, but is it ready to overtake taxis in what is perhaps the last frontier ...
  3. Budgeting

    7 Secret Fees Cutting Into Your Travel Budget

    We're in the midst of the travel-planning season, as solo travelers and families gear up for domestic and international holiday flights.
  4. Savings

    Best Places to Exchange Currency in Houston

    As an international hub, Houston has plenty of currency exchange places serving visitors and residents. Here's where to find the best rates in town.
  5. Budgeting

    Traveling to New York City on a Budget

    Learn fun, new ways to save money while traveling to one of the most popular, and expensive, destinations in the world: New York City.
  6. Savings

    Avoid the Worst Air/Rail Travel Fee Rip-Offs (AAL, ALGT)

    Airline fees can vary tremendously. We've compared them side-by-side – along with Amtrak's new charges – to determine who charges the most (and least).
  7. Savings

    Avoid the High Cost of Cash from Travelex

    All its locations make Travelex the most convenient option for getting foreign currency. But there are cheaper alternatives for changing money.
  8. Professionals

    Types Of Taxes

    These taxes are unavoidable for corporations.
  9. Investing Basics

    The Industry Handbook: The Airline Industry

    Few inventions have changed how people live and experience the world as much as the invention of the airplane. During both World Wars, government subsidies and demands for new airplanes vastly ...
  10. Credit & Loans

    Credit Cards That Get You Into Airport Lounges

    These four credit cards will gain you coveted access to all that free food and peace, while your fellow travelers mill around outside in airport chaos.
RELATED FAQS
  1. Why are most airplane tickets nonrefundable?

    Discover why most airline tickets are nonrefundable. Learn how this practice is a big revenue generator for major airlines. Read Answer >>
  2. What does it mean when airline revenues are adjusted for air traffic liability?

    Understand how the accounting method used by airlines requires them to adjust revenues for air traffic liability and when ... Read Answer >>
  3. How can I use the load factor as an indicator for the profitability of the airline ...

    Learn more about how investors and airlines use load factor. Find out about some of the major expenses of airlines and how ... Read Answer >>
  4. Who first came up with the idea of a progressive tax?

    Learn how the progressive income tax system developed in the United States and became the federal government's primary revenue ... Read Answer >>
  5. What impact does weather have on my investment in the airline industry?

    Learn more about how adverse weather conditions impact airlines and how investors in the airlines industry may suffer losses ... Read Answer >>
  6. What is the difference between income tax and capital gains tax?

    Understand the difference between a person's income tax and his capital gains tax. Learn when a person needs to pay taxes ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center