Phone Bill Higher Than Normal? Wireless Taxes and Fees Just Hit a New Record
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Your cellphone bill is probably higher this year — even if your wireless company didn't raise the monthly rate. That’s because wireless taxes and fees have surged to an all-time high.
According to a new report by the Tax Foundation, a nonprofit think tank, the national average tax rate for wireless services in 2021 is 24.96%.
This marks the fourth consecutive year of increases and the highest rate ever, the study found. In 2020, the national rate was 22.6%. Consumers will pay $11.3 billion overall in taxes and fees for wireless services (including cellphone plans) in 2021.
“A typical American household with four cellphones on a ‘family share’ plan, paying $100 per month for taxable wireless service, would pay nearly $300 per year in taxes, fees, and government surcharges—up from $270 in 2020,” the report stated.
The study also notes that the increased tax burden isn’t distributed evenly. Location is a major factor.
