The Federal Universal Service Fund (FUSF) surcharge increased from 9.1 percent to 9.8 percent of the typical wireless voice bill-a 9 percent increase in 2020, following a 36 percent increase in 2019.įortunately for wireless consumers, price competition continues to push down the average monthly per-line cost of wireless voice service. State and local taxes on wireless services increased slightly, from 12.7 percent to 12.8 percent, the seventh consecutive increase. An American household with four wireless phones paying $100 per month for wireless voice service can expect to pay about $270 per year in wireless taxes, fees, and surcharges-up from $260 in 2019. Taxes, fees, and government surcharges on wireless consumers increased again in 2020, jumping from 21.7 percent to 22.6 percent of a customer’s bill. In Chicago, a family with four lines of taxable wireless service paying $100 per month is subjected to over $500 per year in taxes and fees. Excessive taxes and fees, especially the very high per-line charges, impose a disproportionate burden on low-income consumers. However, wireless taxes have increased by 50 percent, from 15.1 percent to 22.6 percent of the average bill.Īt the end of 2019, over 67 percent of low-income adults had wireless as their phone service, and 58 percent of all adults were wireless-only. Since 2008, average monthly wireless service bills per subscriber have dropped by 26 percent, from $50 per line to about $37 per line.
Illinois has the highest wireless taxes in the country at 32.2 percent, followed by Arkansas at 30.0 percent, Washington at 29.7 percent, Nebraska at 29.1 percent, and New York at 28.6 percent.
Nationally, these impositions make up about 22.6 percent of the average bill-the highest rate ever. A typical American household with four phones on a “family share” plan, paying $100 per month for taxable wireless service, can expect to pay about $270 per year in taxes, fees, and surcharges-up from $260 in 2019.
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