Do You Pay Taxes on Cruise Ship?

By Anna Duncan

Cruise ship passengers who travel for leisure may wonder if they have to pay taxes on their cruise. This depends on the country of departure, the length of time spent on the ship, and other factors.

When a passenger takes a cruise from a port in the U.S., they are subject to U. taxation, regardless of the nationality of the cruise line or the ultimate destination of the voyage. The Internal Revenue Service (IRS) considers cruises that begin and end in U. ports to be “domestic trips” and therefore taxable.

For cruises that depart from a U. port but end in an international location, passengers can still be subject to taxation depending on how long they spend at sea. A passenger who spends fewer than 24 hours total at sea will not be taxed on their cruise income, but any amount over 24 hours will be considered taxable income.

When a passenger takes a cruise from an international port, such as Canada or Mexico, they may not be subject to taxation in the U., depending on the location and length of their voyage. Generally speaking, cruises that do not stop at any U. ports will not be taxed in the United States.

Conclusion:
In conclusion, whether or not you must pay taxes on your cruise depends on where you board your ship and how long it is at sea for its journey – cruises departing from US ports are generally subject to US taxation regardless of where they ultimately end up while those departing from international ports may not necessarily be subject to US taxation if no US ports are visited during the journey.