Which statement is true about the U.S. Domestic Ticket Tax calculation?

Which statement is true about the U.S. Domestic Ticket Tax calculation?

• A. It is 5% of the base fare
• B. It is 7.5% of the base fare
• C. It is 10% of the base fare
• D. It is 15% of the base fare

Answer: (B)

The question tests how the U.S. Federal Excise Tax on domestic air travel is calculated. The tax is applied to the base fare, not to the total ticket price or to any taxes and surcharges that are added later. The rate is seven and a half percent, so the tax amount equals 0.075 times the base fare. This tax is collected by the airline and shown as a separate line item on the ticket. So, the correct approach is to take the base fare and multiply by 7.5%.

The question tests how the U.S. Federal Excise Tax on domestic air travel is calculated. The tax is applied to the base fare, not to the total ticket price or to any taxes and surcharges that are added later. The rate is seven and a half percent, so the tax amount equals 0.075 times the base fare. This tax is collected by the airline and shown as a separate line item on the ticket. So, the correct approach is to take the base fare and multiply by 7.5%.