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Excise Taxes and Fees on Wireless Services Up Again in 2025

  • Increase in Wireless Taxes: As of 2025, taxes, fees, and government surcharges on wireless services have reached a record high of 27.60% of the average bill, translating to over $330 annually for households on a typical family share plan. States like Illinois impose the highest taxes, while Idaho has the lowest.
  • Regressive Nature of Wireless Taxes: The report highlights that wireless taxes are regressive, disproportionately affecting low-income households that rely heavily on wireless services. As many as 83% of low-income adults live in wireless-only households, making these taxes a significant burden during a time when access to wireless communication is essential.
  • Call for Tax Structure Reevaluation: The article advocates for a reassessment of existing wireless tax structures, urging policymakers to shift from targeted wireless taxes to broader consumption taxes that would alleviate the financial strain on consumers and encourage investment in wireless infrastructure, ultimately benefiting the economy in the long term.

Source Tax Foundation



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