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Internal Revenue Code · 26 U.S.C.

§ 4261. Imposition of tax

In force Text current through Public Law 119-121 (October 9, 2026) release point 119-121

Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).

Cite as 26 U.S.C. § 4261

At a glance

Read from the text, the source credit and the official notes. Not part of the law.

Status
In force
Enacted
June 30, 1959 by Pub. L. 86–75
Last amended
May 16, 2024 by Pub. L. 118–63
Amendments
54 dated changes in the source credit
Length
11 subsections · 2,435 words · about 11 min to read
Defines
5 terms
Cross-references
cites 8; cited by 9 Code sections and 8 other regulations
Regulations
10 issued under this section
(a) In general

There is hereby imposed on the amount paid for taxable transportation of any person a tax equal to 7.5 percent of the amount so paid.

(b) Domestic segments of taxable transportation
(1) In general

There is hereby imposed on the amount paid for each domestic segment of taxable transportation by air a tax in the amount of $3.00.

(2) Domestic segment

For purposes of this section, the term “domestic segment” means any segment consisting of 1 takeoff and 1 landing and which is taxable transportation described in section 4262(a)(1).

(3) Changes in segments by reason of rerouting If—
(A) transportation is purchased between 2 locations on specified flights, and
(B) there is a change in the route taken between such 2 locations which changes the number of domestic segments, but there is no change in the amount charged for such transportation,
the tax imposed by paragraph (1) shall be determined without regard to such change in route.
(c) Use of international travel facilities
(1) In general

There is hereby imposed a tax of $12.00 on any amount paid (whether within or without the United States) for any transportation of any person by air, if such transportation begins or ends in the United States.

(2) Exception for transportation entirely taxable under subsection (a)

This subsection shall not apply to any transportation all of which is taxable under subsection (a) (determined without regard to sections 4281 and 4282).

(3) Special rule for Alaska and Hawaii

In any case in which the tax imposed by paragraph (1) applies to a domestic segment beginning or ending in Alaska or Hawaii, such tax shall apply only to departures and shall be at the rate of $6.

(d) By whom paid

Except as provided in section 4263(a), the taxes imposed by this section shall be paid by the person making the payment subject to the tax.

(e) Special rules
(1) Segments to and from rural airports
(A) Exception from segment tax

The tax imposed by subsection (b)(1) shall not apply to any domestic segment beginning or ending at an airport which is a rural airport for the calendar year in which such segment begins or ends (as the case may be).

(B) Rural airport For purposes of this paragraph, the term “rural airport” means, with respect to any calendar year, any airport if—
(i) there were fewer than 100,000 commercial passengers departing by air (in the case of any airport described in clause (ii)(III), on flight segments of at least 100 miles) during the second preceding calendar year from such airport, and
(ii) such airport—
(I) is not located within 75 miles of another airport which is not described in clause (i),
(II) is receiving essential air service subsidies as of the date of the enactment of this paragraph, or
(III) is not connected by paved roads to another airport.
(2) Amounts paid outside the United States

In the case of amounts paid outside the United States for taxable transportation, the taxes imposed by subsections (a) and (b) shall apply only if such transportation begins and ends in the United States.

(3) Amounts paid for right to award free or reduced rate air transportation
(A) In general

Any amount paid (and the value of any other benefit provided) to an air carrier (or any related person) for the right to provide mileage awards for (or other reductions in the cost of) any transportation of persons by air shall be treated for purposes of subsection (a) as an amount paid for taxable transportation, and such amount shall be taxable under subsection (a) without regard to any other provision of this subchapter.

(B) Controlled group

For purposes of subparagraph (A), a corporation and all wholly owned subsidiaries of such corporation shall be treated as 1 corporation.

(C) Regulations

The Secretary shall prescribe rules which reallocate items of income, deduction, credit, exclusion, or other allowance to the extent necessary to prevent the avoidance of tax imposed by reason of this paragraph. The Secretary may prescribe rules which exclude from the tax imposed by subsection (a) amounts attributable to mileage awards which are used other than for transportation of persons by air.

(4) Inflation adjustment of dollar rates of tax
(A) In general In the case of taxable events in a calendar year after the last nonindexed year, the $3.00 amount contained in subsection (b) and each dollar amount contained in subsection (c) shall be increased by an amount equal to—
(i) such dollar amount, multiplied by
(ii) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting the year before the last nonindexed year for “calendar year 2016” in subparagraph (A)(ii) thereof.
If any increase determined under the preceding sentence is not a multiple of 10 cents, such increase shall be rounded to the nearest multiple of 10 cents.
(B) Last nonindexed year For purposes of subparagraph (A), the last nonindexed year is—
(i) 2002 in the case of the $3.00 amount contained in subsection (b), and
(ii) 1998 in the case of the dollar amounts contained in subsection (c).
(C) Taxable event

For purposes of subparagraph (A), in the case of the tax imposed by subsection (b), the beginning of the domestic segment shall be treated as the taxable event.

(D) Special rule for amounts paid for domestic segments beginning after 2002

If an amount is paid during a calendar year for a domestic segment beginning in a later calendar year, then the rate of tax under subsection (b) on such amount shall be the rate in effect for the calendar year in which such amount is paid.

(5) Amounts paid for aircraft management services
(A) In general No tax shall be imposed by this section or section 4271 on any amounts paid by an aircraft owner for aircraft management services related to—
(i) maintenance and support of the aircraft owner’s aircraft, or
(ii) flights on the aircraft owner’s aircraft.
(B) Aircraft management services For purposes of subparagraph (A), the term “aircraft management services” includes—
(i) assisting an aircraft owner with administrative and support services, such as scheduling, flight planning, and weather forecasting,
(ii) obtaining insurance,
(iii) maintenance, storage and fueling of aircraft,
(iv) hiring, training, and provision of pilots and crew,
(v) establishing and complying with safety standards, and
(vi) such other services as are necessary to support flights operated by an aircraft owner.
(C) Lessee treated as aircraft owner
(i) In general

For purposes of this paragraph, the term “aircraft owner” includes a person who leases the aircraft other than under a disqualified lease.

(ii) Disqualified lease

For purposes of clause (i), the term “disqualified lease” means a lease from a person providing aircraft management services with respect to such aircraft (or a related person (within the meaning of section 465(b)(3)(C)) to the person providing such services), if such lease is for a term of 31 days or less.

(D) Pro rata allocation

In the case of amounts paid to any person which (but for this subsection) are subject to the tax imposed by subsection (a), a portion of which consists of amounts described in subparagraph (A), this paragraph shall apply on a pro rata basis only to the portion which consists of amounts described in such subparagraph.

(f) Exemption for certain uses No tax shall be imposed under subsection (a) or (b) on air transportation—
(1) by helicopter for the purpose of transporting individuals, equipment, or supplies in the exploration for, or the development or removal of, hard minerals, oil, or gas, or
(2) by helicopter or by fixed-wing aircraft for the purpose of the planting, cultivation, cutting, or transportation of, or caring for, trees (including logging operations),
but only if the helicopter or fixed-wing aircraft does not take off from, or land at, a facility eligible for assistance under the Airport and Airway Development Act of 1970, or otherwise use services provided pursuant to section 44509 or 44913(b) or subchapter I of chapter 471 of title 49, United States Code, during such use. In the case of helicopter transportation described in paragraph (1), this subsection shall be applied by treating each flight segment as a distinct flight.
(g) Exemption for air ambulances providing certain emergency medical transportation No tax shall be imposed under this section or section 4271 on any air transportation for the purpose of providing emergency medical services—
(1) by helicopter, or
(2) by a fixed-wing aircraft equipped for and exclusively dedicated on that flight to acute care emergency medical services.
(h) Exemption for skydiving uses

No tax shall be imposed by this section or section 4271 on any air transportation exclusively for the purpose of skydiving.

(i) Exemption for seaplanes

No tax shall be imposed by this section or section 4271 on any air transportation by a seaplane with respect to any segment consisting of a takeoff from, and a landing on, water, but only if the places at which such takeoff and landing occur have not received and are not receiving financial assistance from the Airport and Airways Trust Fund.

(j) Exemption for aircraft in fractional ownership aircraft programs

No tax shall be imposed by this section or section 4271 on any air transportation if tax is imposed under section 4043 with respect to the fuel used in such transportation. This subsection shall not apply after September 30, 2028.

(k) Application of taxes
(1) In general The taxes imposed by this section shall apply to—
(A) transportation beginning during the period—
(i) beginning on the 7th day after the date of the enactment of the Airport and Airway Trust Fund Tax Reinstatement Act of 1997, and
(ii) ending on September 30, 2028, and
(B) amounts paid during such period for transportation beginning after such period.
(2) Refunds

If, as of the date any transportation begins, the taxes imposed by this section would not have applied to such transportation if paid for on such date, any tax paid under paragraph (1)(B) with respect to such transportation shall be treated as an overpayment.

(Aug. 16, 1954, ch. 736, 68A Stat. 506; July 25, 1956, ch. 725, §§ 1, 4(b), 70 Stat. 644, 646; Pub. L. 86–75, § 4, June 30, 1959, 73 Stat. 158; Pub. L. 86–564, title II, § 202(a)(3), June 30, 1960, 74 Stat. 290; Pub. L. 87–72, § 3(a)(3), June 30, 1961, 75 Stat. 193; Pub. L. 87–508, § 5(a), (b), June 28, 1962, 76 Stat. 115; Pub. L. 88–52, § 3(a)(3), June 29, 1963, 77 Stat. 72; Pub. L. 88–348, § 2(a)(3), June 30, 1964, 78 Stat. 237; Pub. L. 89–44, title III, § 303(a), June 21, 1965, 79 Stat. 148; Pub. L. 91–258, title II, § 203(a), May 21, 1970, 84 Stat. 238; Pub. L. 94–455, title XIX, § 1904(a)(7), Oct. 4, 1976, 90 Stat. 1812; Pub. L. 96–298, § 1(b), July 1, 1980, 94 Stat. 829; Pub. L. 97–248, title II, § 280(a), Sept. 3, 1982, 96 Stat. 564; Pub. L. 98–369, div. A, title X, § 1018(b), July 18, 1984, 98 Stat. 1021; Pub. L. 99–514, title XVIII, § 1878(c)(2), Oct. 22, 1986, 100 Stat. 2903; Pub. L. 100–223, title IV, §§ 402(a)(1), 404(a), (c), Dec. 30, 1987, 101 Stat. 1532, 1533; Pub. L. 101–239, title VII, § 7503(a), Dec. 19, 1989, 103 Stat. 2362; Pub. L. 101–508, title XI, § 11213(a)(1), (d)(1), Nov. 5, 1990, 104 Stat. 1388–432, 1388–435; Pub. L. 103–272, § 5(g)(2), July 5, 1994, 108 Stat. 1374; Pub. L. 104–188, title I, § 1609(b), (d), (e), Aug. 20, 1996, 110 Stat. 1841, 1842; Pub. L. 105–2, § 2(b)(1), Feb. 28, 1997, 111 Stat. 5; Pub. L. 105–34, title X, § 1031(b)(1), (c)(1), (2), title XIV, § 1435(a), title XVI, § 1601(f)(4)(D), Aug. 5, 1997, 111 Stat. 929, 930, 1052, 1091; Pub. L. 108–176, title IX, § 902(a), Dec. 12, 2003, 117 Stat. 2598; Pub. L. 109–59, title XI, §§ 11121(c), 11122(a), 11123(a), Aug. 10, 2005, 119 Stat. 1951, 1952; Pub. L. 109–135, title IV, § 412(vv), Dec. 21, 2005, 119 Stat. 2640; Pub. L. 110–161, div. K, title I, § 116(b)(1), Dec. 26, 2007, 121 Stat. 2381; Pub. L. 110–190, § 2(b)(1), Feb. 28, 2008, 122 Stat. 643; Pub. L. 110–253, § 2(b)(1), June 30, 2008, 122 Stat. 2417; Pub. L. 110–330, § 2(b)(1), Sept. 30, 2008, 122 Stat. 3717; Pub. L. 111–12, § 2(b)(1), Mar. 30, 2009, 123 Stat. 1457; Pub. L. 111–69, § 2(b)(1), Oct. 1, 2009, 123 Stat. 2054; Pub. L. 111–116, § 2(b)(1), Dec. 16, 2009, 123 Stat. 3031; Pub. L. 111–153, § 2(b)(1), Mar. 31, 2010, 124 Stat. 1084; Pub. L. 111–161, § 2(b)(1), Apr. 30, 2010, 124 Stat. 1126; Pub. L. 111–197, § 2(b)(1), July 2, 2010, 124 Stat. 1353; Pub. L. 111–216, title I, § 101(b)(1), Aug. 1, 2010, 124 Stat. 2349; Pub. L. 111–249, § 2(b)(1), Sept. 30, 2010, 124 Stat. 2627; Pub. L. 111–329, § 2(b)(1), Dec. 22, 2010, 124 Stat. 3566; Pub. L. 112–7, § 2(b)(1), Mar. 31, 2011, 125 Stat. 31; Pub. L. 112–16, § 2(b)(1), May 31, 2011, 125 Stat. 218; Pub. L. 112–21, § 2(b)(1), June 29, 2011, 125 Stat. 233; Pub. L. 112–27, § 2(b)(1), Aug. 5, 2011, 125 Stat. 270; Pub. L. 112–30, title II, § 202(b)(1), Sept. 16, 2011, 125 Stat. 357; Pub. L. 112–91, § 2(b)(1), Jan. 31, 2012, 126 Stat. 3; Pub. L. 112–95, title XI, §§ 1101(b)(1), 1103(c), Feb. 14, 2012, 126 Stat. 148, 151; Pub. L. 113–295, div. A, title II, § 221(a)(104), Dec. 19, 2014, 128 Stat. 4053; Pub. L. 114–55, title II, § 202(b)(1), (c)(2), Sept. 30, 2015, 129 Stat. 525; Pub. L. 114–141, title II, § 202(b)(1), (c)(2), Mar. 30, 2016, 130 Stat. 324, 325; Pub. L. 114–190, title I, § 1202(b)(1), (c)(2), July 15, 2016, 130 Stat. 619; Pub. L. 115–63, title II, § 202(b)(1), (c)(2), Sept. 29, 2017, 131 Stat. 1171; Pub. L. 115–97, title I, §§ 11002(d)(1)(FF), 13822(a), Dec. 22, 2017, 131 Stat. 2060, 2182; Pub. L. 115–141, div. M, title I, § 202(b)(1), (c)(2), div. U, title IV, § 401(b)(42), Mar. 23, 2018, 132 Stat. 1048, 1049, 1204; Pub. L. 115–254, div. B, title VIII, § 802(b)(1), (c)(3), Oct. 5, 2018, 132 Stat. 3429; Pub. L. 118–15, div. B, title II, § 2212(b)(1), (c)(3), Sept. 30, 2023, 137 Stat. 85; Pub. L. 118–34, title II, § 202(b)(1), (c)(3), Dec. 26, 2023, 137 Stat. 1115, 1116; Pub. L. 118–41, title II, § 202(b)(1), (c)(3), Mar. 8, 2024, 138 Stat. 23, 24; Pub. L. 118–63, title XIII, § 1302(b)(1), (c)(3), May 16, 2024, 138 Stat. 1433, 1434.)

Terms defined here

Where the text says “the term … means”. Select a term to jump to its definition.

Regulations under this section

Treasury regulations (26 CFR) issued under § 4261

Cross-references

Computed from the citations in the text of Title 26 and 26 CFR.

This section cites 8 other sections

Cited by 9 Code sections

Cited in 8 regulations not issued under it

Amendment history

From the source credit and the official notes, newest first.

  1. Amended by Pub. L. 118–63Parts changed in 2024: (j) (k)(1)(A)(ii)
  2. Amended by Pub. L. 118–41
  3. Amended by Pub. L. 118–34Parts changed in 2023: (j) (k)(1)(A)(ii)
  4. Amended by Pub. L. 118–15
  5. Amended by Pub. L. 115–254Parts changed in 2018: (b)(1) (j) (k)(1)(A)(ii)
  6. Amended by Pub. L. 115–141
  7. Amended by Pub. L. 115–97Parts changed in 2017: (e)(4)(A)(ii) (e)(5) (j) (k)(1)(A)(ii)
  8. Amended by Pub. L. 115–63
  9. Amended by Pub. L. 114–190Parts changed in 2016: (j) (k)(1)(A)(ii)
  10. Amended by Pub. L. 114–141
  11. Amended by Pub. L. 114–55Parts changed in 2015: (j) (k)(1)(A)(ii)
  12. Amended by Pub. L. 113–295Parts changed in 2014: (e)(1)(C) (e)(5)
  13. Amended by Pub. L. 112–95Parts changed in 2012: (j) (j)(1)(A)(ii) (k)
  14. Amended by Pub. L. 112–91
  15. Amended by Pub. L. 112–30Parts changed in 2011: (j)(1)(A)(ii)
  16. Amended by Pub. L. 112–27
  17. Amended by Pub. L. 112–21
  18. Amended by Pub. L. 112–16
  19. Amended by Pub. L. 112–7
  20. Amended by Pub. L. 111–329Parts changed in 2010: (j)(1)(A)(ii)
  21. Amended by Pub. L. 111–249
  22. Amended by Pub. L. 111–216
  23. Amended by Pub. L. 111–197
  24. Amended by Pub. L. 111–161
  25. Amended by Pub. L. 111–153
  26. Amended by Pub. L. 111–116Parts changed in 2009: (j)(1)(A)(ii)
  27. Amended by Pub. L. 111–69
  28. Amended by Pub. L. 111–12
  29. Amended by Pub. L. 110–330Parts changed in 2008: (j)(1)(A)(ii)
  30. Amended by Pub. L. 110–253
  31. Amended by Pub. L. 110–190
  32. Amended by Pub. L. 110–161Parts changed in 2007: (j)(1)(A)(ii)
  33. Amended by Pub. L. 109–135Parts changed in 2005: (e)(1)(B)(i) (e)(1)(B)(ii)(III) (e)(4)(C) (f) (i)
  34. Amended by Pub. L. 109–59
  35. Amended by Pub. L. 108–176Parts changed in 2003: (e)(4)(D)
  36. Amended by Pub. L. 105–34Parts changed in 1997: (a) (b) (c) (e) (g) (g)(1)(A)(ii) (g)(2) (h) (i)
  37. Amended by Pub. L. 105–2
  38. Amended by Pub. L. 104–188Parts changed in 1996: (e) (f) (g)
  39. Amended by Pub. L. 103–272Parts changed in 1994: (e)
  40. Amended by Pub. L. 101–508Parts changed in 1990: (a) (g)
  41. Amended by Pub. L. 101–239Parts changed in 1989: (c)
  42. Amended by Pub. L. 100–223Parts changed in 1987: (e) (f) (g)
  43. Amended by Pub. L. 99–514Parts changed in 1986: (e)(1)
  44. Amended by Pub. L. 98–369Parts changed in 1984: (e)(1)
  45. Amended by Pub. L. 97–248Parts changed in 1982: (e) (f)
  46. Amended by Pub. L. 96–298Parts changed in 1980: (e)
  47. Amended by Pub. L. 94–455Parts changed in 1976: (a) (b) (c)
  48. Amended by Pub. L. 91–258Parts changed in 1970: (a) (b) (c) (e)
  49. Amended by Pub. L. 89–44
  50. Amended by Pub. L. 88–348
  51. Amended by Pub. L. 88–52
  52. Amended by Pub. L. 87–508Parts changed in 1962: (a) (c)
  53. Amended by Pub. L. 87–72
  54. Amended by Pub. L. 86–564
  55. Enacted by Pub. L. 86–75

Where it sits in the Code

  1. Subtitle D Miscellaneous Excise Taxes
  2. Chapter 33 FACILITIES AND SERVICES
  3. Subchapter C Transportation by Air
  4. Part I PERSONS

Nearby sections

Official notes

The Law Revision Counsel's notes for this section (amendments, effective dates and related laws) are long, so they have their own page.