Summer travel time is prime tax time

May 22, 2014

Are you heading out this coming Memorial Day weekend? I hope you have a great break from your job or whatever you're trying to escape.

One thing you won't be able to avoid, however, is taxes.

If you're flying, you already know about the tax ding on your travel budget.

The biggest cost is for fuel (just scroll down the slide above), with 21 percent of your ticket price paying to fill up the jet.

Tax adds to ticket prices: Federal taxes, however, are a close second at 20 percent of your airfare.

There's the 7.5 percent federal ticket tax, along with a "flight segment tax," an airport passenger fee and a charge to cover airline security.

If you're traveling abroad, it gets worse, thanks to a variety of charges for Customs and immigration.

And by summer, taxes might even take over the top spot in your air travel costs.

A hike in security fees takes effect in July, meaning that the typical $300 domestic airline ticket will include $63 in ticket taxes and other government levies. That's effectively 26 percent of the base fare of $237.40, notes Condé Nast Traveler.

Road costs, too: Ever increasing airfares are one of the reasons that most of us will be traveling this Memorial Day weekend and beyond by auto.

AAA analysts expect more than 36 million Americans will take a trip this long holiday weekend, which the travel association counts as beginning today, May 22, and running through Memorial Day Monday, May 26.

Of those travelers, which AAA says should hit a new post-recession high, an impressive 88 percent, or almost 31 million, will do so by car. That's an increase from last year's 31.4 million Memorial Day drivers.

That's going to be a lot of traffic at gas stations across the United States.

And, as is usually the case when the summer vacation season begins, pump prices will be at least a tad higher.

TheStreet.com reports that this Memorial Day weekend California gasoline prices are 11 cents higher, Floridians are paying 16 cents more, New Yorkers are paying 14 cents a gallon more and Massachusetts motorists are facing gas prices that are about 17 cents more. Even here in Texas, pump prices are up about 3 cents a gallon.

Part of that price, is of course taxes, thanks to both the federal gasoline tax of 18.4 cents per gallon and each state's various taxes and fees.

Paying the taxman to stay: And if you don't crash at a relative's place, you'll have to cover some taxes in your lodging bill.

The hubby and I got a taste of those taxes when we headed to Houston for a few days at the end of April. Our downtown hotel bill included 15 percent in taxes per each night.

Sunset at Houston Astros game at Minute Maid Park late April 2014

It was a nice establishment, an easy walk to the Astros park, so that daily tax amount came to essentially the cost of a dinner for two (sans wine) for each day's stay.

We expected it, so we budgeted for the added tax costs. You should, too.

If you don't think about travel taxes — on transportation, food, lodging, amusement offerings — before you head out, the surprise levies could put a damper on your excursions.

You also might find these items of interest:

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
The latest Dirty Dozen tax scam list is familiar because too many are still falling for the schemes

March 5, 2026

Tax filing season is also peak time for tax scams. Be on the lookout for…

Read More
Hello Tax Season 2026

Happy New Tax Year! Are you ready to file your 2025 tax return? I know, too early to ask. But Tax Day 2026 will be here before we realize it. The Internal Revenue Service deadline to file and pay any tax we owe is the regular April 15 date this year. It’s also Tax Day for most of the states that collect income taxes from their residents, which is most of the states! If that seems too far away right now, don’t worry. As is the case every tax season, the ol’ blog’s tips and other tax reminders should help all of us meet our state and federal responsibilities. Procrastinators also will want to keep an eye on the countdown clock just below. It tracks how much time we have until April’s Tax Day, just in case we put off our annual tax task until the absolutely final hours and decide we need to instead get an extension request into the IRS by that date. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
Leave the first comment