Sorry, No Airline Ticket Tax Refund
Legislation ending the FAA shutdown reinstated air transportation taxes retroactively.
I hate to be the one to break it to you, but you won't be getting an airline tax refund. No one will.
It's like the government and airlines are shouting a collective "Psyche!" First, it appeared that airline passengers might get a tax holiday on tickets purchased after Congress adjourned July 22 without passing legislation authorizing the Federal Aviation Administration's operating authority, leaving the administration without the ability to impose airline taxes. But most airlines decided not to pass on savings to travelers. Instead, they raised base fares to offset tax savings (see Airline Travelers Not Getting a Tax Holiday).
Then it seemed that people who bought airline tickets on or before July 22 for travel on or after July 23 were due a refund of the federal taxes they paid on their tickets (see Want an Airline Tax Refund? Be Patient). But Congress reinstated the FAA's operating authority today and, according to the IRS, reinstated airline ticket taxes retroactively. So passengers won't get a refund, after all.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
On the bright side, "the IRS intends to provide relief for passengers and airlines with respect to ticket taxes that were not paid or collected because of the lapse," according to an August 5 IRS statement. What that means is that the IRS won't be collecting back taxes from those who purchased airline tickets during the tax lapse.
The IRS expects airlines to resume collecting ticket taxes by 12:01 a.m. August 8.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Award-winning journalist, speaker, family finance expert, and author of Mom and Dad, We Need to Talk.
Cameron Huddleston wrote the daily "Kip Tips" column for Kiplinger.com. She joined Kiplinger in 2001 after graduating from American University with an MA in economic journalism.
-
Humanoid Robots Are About to be Put to the TestThe Kiplinger Letter Robot makers are in a full-on sprint to take over factories, warehouses and homes, but lofty visions of rapid adoption are outpacing the technology’s reality.
-
A Value Focus Clips Returns for This Mairs & Power Growth FundRough years for UnitedHealth and Fiserv have weighed on returns for one of our favorite mutual funds.
-
Small-Cap Stocks Gain Momentum. That's Good News for This iShares ETFThe clouds appear to be parting for small-cap stocks, which bodes well for one of our favorite exchange-traded funds.
-
Why It's Worth Booking a Winter VacationTravel Smart In the early months of the year, travel demand dips — and so do prices.
-
5 Ways to Save on a Trip to the 2026 Olympics in ItalyA guide to going to the Milan-Cortina 2026 Winter Olympics without breaking the bank.
-
The Best (and Worst) Airlines for Flight Delays and CancellationsWhich airlines should you book and which should you avoid if you want to make it to your destination on time?
-
Four Luxury Spa Resorts for Well-Heeled TravelersWe hand-picked these U.S. luxury spa resorts for their serenity, amenities and dedication to the comfort of older travelers.
-
Child-Free Cruises Perfect For Your Retirement CelebrationHow to find a bespoke ocean or river vacation for adults. Many of these options are smaller, charming river cruises, expeditions, or niche experiences.
-
Noctourism: The New Travel Trend For Your Next Trip"Noctourism" is a new trend of building travel and vacations around events and plans that take place at night. Take a look at some inspiring noctourism ideas.
-
My Husband and I Retired at 67 With $3.2 Million, But He's Frugal About Travel. How Can I Convince Him to Loosen Up?We asked financial planning experts for advice.
-
Cruise Lines Sue to Block Hawaii’s New Climate Tourism TaxState Tax Your vacation to the Aloha State could come at a higher price tag next year. Here’s why.