- American households with four phones on a “family share” plan pay nearly $294 per year in taxes, fees, and government surcharges, down slightly from $305 in 2022.
- Nationally, taxes, fees, and government surcharges make up a record-high 24.5 percent tax on taxable voice services.
- Illinois residents have the highest wireless taxes at 33.8 percent, followed by residents in Arkansas at 32.2 percent and Washington at 32.1 percent. Idaho residents pay the lowest wireless taxes at 13.7 percent. Texas had the largest increase in taxes, going from 24.1 to 28.3 percent, due to a large increase in the state Universal Service Fund charge.
- The Federal Universal Service Fund charge rate decreased for the first time since 2017, dropping from 12.2 percent to 10.8 percent. However, state and local wireless tax rates increased from 13.2 percent to 13.7 percent. The federal Permanent Internet Tax Freedom Act prevents state and local governments from imposing taxes and fees on wireless internet access.
- The average charge from wireless providers has decreased by 26 percent since 2012, but wireless taxes, fees, and government surcharges have increased from 17.2 percent to 24.5 percent of the average bill.
- Roughly 78 percent of low-income adults and 72 percent of all adults live in wireless-only households, making wireless taxes regressive and burdensome for low-income families.
Source Tax Foundation
