More than ever, the reliance is on wireless connections for access to family, healthcare, education, and business. By the end of 2024, there were a record 579 million wireless connections across the country. In fact, Americans are connecting more than ever, with 21 million new wireless connections added last year alone. Yet, the latest Tax Foundation report indicates a stark new high in wireless taxes and fees, even though the cost of service has never been lower.

Wireless Costs are Lower than Ever

While the cost of everyday essentials is rising, the price of wireless services has been steadily decreasing over the past decade thanks to an increasingly competitive market. In practice, this allows wireless users to select the best option that fits their needs and budget.

Since 2012, the average charge from wireless providers has decreased 29 percent, from $47.00 to $33.36 per line.

So are you wondering why you don’t see lower prices on your monthly bill?

The Burden of Wireless Taxes Reach Record-High

During this same period of record-low service prices, the cost of taxes, fees, and surcharges on an average bill skyrocketed by 27.60 percent.

As a result, any benefit from lower service costs is wiped out by these increasingly overwhelming taxes and fees on your bill. According to the report, taxpayers will see a startling disparity in how much they pay in wireless taxes compared to general sales tax, approximately 1.8 times higher.

Breaking Down the Numbers

In total, Americans will pay $12.5 billion in taxes to state and local governments in 2025. When the numbers are broken down, more than half of that total –$7.1 billion– accounts for just wireless and telecommunication services.

How much you pay, though, depends on where you live. In 17 states, wireless taxes are more than twice as high as sales taxes.

Curious how these taxes are impacting your bill? See how your state compares:

 

The Impact on Low-Income Communities

Smartphones are often the easiest and least expensive way for low-income families to stay online, making them a crucial link for access to healthcare, education, and work. These disproportionate fees affect everyone, but are especially hard on families who can least afford them.

According to the Centers for Disease Control and Prevention, low-income adults rely on wireless service even more than the general population, with 83 percent living in wireless-only households compared to 78 percent of the general adult population.

Join ACTwireless Today

The taxes and fees outlined in the new Tax Foundation report are staggering, especially at a time when the cost of wireless service is lower than ever. And we all feel the impact. Working together, we can combat excessive wireless taxes and continue to expand access for everyone, ensuring that high taxes and fees never stand in the way of getting or staying connected.