News > An obscure rule helps explain why airlines charge so much for checked bags

An obscure rule helps explain why airlines charge so much for checked bags

Airlines pay the federal government 7.5% of the ticket price when flying people domestically, alongside other fees. However, the US Code of Federal Regulations specifically excludes baggage from the 7.5% transportation tax as long as “the charge is separable from the payment for the transportation of a person and is shown in the exact amount.” By splitting out the cost of bags, airlines avoided paying about half a billion dollars in taxes just last year.