Skip to content

Reduced Taxes on Airline Tickets

July 23, 2011
2 min read
Reduced Taxes on Airline Tickets
The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don’t cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.

I have to be honest, I haven't been closely following the drama in Washington over the budget, but I did read an interesting blog post from Gary at View from the Wing about the the possibility of less taxes being collected on airline tickets. And as of today, fewer government taxes on airline tickets, which is great news to consumers.

I can vouch for this firsthand, because yesterday I booked two domestic airline tickets on delta.com and the the fee breakdown was:

Fare: 442.79 USD
Tax: 43.91 TX
Total: 486.70 USD

The same exact itinerary today:

Fare: 433.49 USD
Tax: 7.00 TX
Total: 440.49 USD

Luckily Delta allows 24 hour risk-free cancellations, so I re-booked the itinerary at the lower rate (plus the fare dropped - whether that was due to the tax implications, I do not know) and then canceled my more expensive itinerary, saving me $92.42. Not bad!

Daily Newsletter
Reward your inbox with the TPG Daily newsletter
Join over 700,000 readers for breaking news, in-depth guides and exclusive deals from TPG’s experts

If you are in the market for airline tickets, today could be a good day to make your bookings and take advantage of these savings. I'm not sure what the savings would be on an international ticket, but saving 10% was a nice little bonus for me since fares have been sky-high this summer!

TPG featured card

Rewards rate
5X milesEarn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel
2X milesEarn unlimited 2X miles on every purchase, every day
Intro offer
Open Intro bonus
Enjoy a $250 travel credit & earn 75K bonus miles
Annual fee
$95
Regular APR
19.49% - 28.49% (Variable)
Recommended credit
Open Credit score description
670-850Excellent, Good

Pros

  • Stellar welcome offer of 75,000 miles after spending $4,000 on purchases in the first three months from account opening. Plus, a $250 Capital One Travel credit to use in your first cardholder year upon account opening.
  • You'll earn 2 miles per dollar on every purchase, which means you won't have to worry about memorizing bonus categories
  • Rewards are versatile and can be redeemed for a statement credit or transferred to Capital One’s transfer partners

Cons

  • Highest bonus-earning categories only on travel booked via Capital One Travel
  • LIMITED-TIME OFFER: Enjoy $250 to use on Capital One Travel in your first cardholder year, plus earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening - that’s equal to $1,000 in travel
  • Earn unlimited 2X miles on every purchase, every day
  • Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel
  • Miles won't expire for the life of the account and there's no limit to how many you can earn
  • Receive up to a $120 credit for Global Entry or TSA PreCheck®
  • Use your miles to get reimbursed for any travel purchase—or redeem by booking a trip through Capital One Travel
  • Enjoy a $50 experience credit and other premium benefits with every hotel and vacation rental booked from the Lifestyle Collection
  • Transfer your miles to your choice of 15+ travel loyalty programs
  • Top rated mobile app