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Excise Taxes and Fees on Wireless
Services Increase Again in 2022
Key Findings
• A typical American household with four phones on a “family share” plan,
paying $100 per month for taxable wireless service, would pay nearly $305
per year in taxes, fees, and government surcharges—up slightly from $300 in
2021.
• Nationally, taxes, fees, and government surcharges make up a record-high
25.4 percent tax on taxable voice services. Illinois continues to have the
highest wireless taxes in the country at 34.9 percent, followed by Washington
at 32.9 percent, and Arkansas at 32.2 percent. Idaho has the lowest wireless
tax at 15.0 percent.
•
Indiana had the largest wireless tax reduction of any state in 2022—from 12.3
percent to 11.4 percent—because it repealed the utility gross receipts tax.
• For the first time since 2012, state and local wireless tax rates did not
increase, dropping slightly from 13.16 percent to 13.15 percent. However,
the Federal Universal Service Fund (FUSF) charge increased again, to 12.24
percent of taxable wireless service.
• The federal Permanent Internet Tax Freedom Act prevents state and local
governments from imposing taxes and fees on wireless internet access.
Without this federal prohibition, taxes and fees that apply to wireless voice
services could be applied to internet access and significantly increase the tax
burden on wireless bills.
• Since 2012, the average charge from wireless providers decreased by 24
percent, from $47.00 per line per month to $35.74 per line. However, during
this same time, wireless taxes, fees, and government surcharges