You just earned 80,000 Membership Rewards points on your Amex Platinum. You go to transfer them to Air Canada Aeroplan for a business class flight to Tokyo. Then you see it: a $48 fee for “Excise Tax Offset.” That’s real money—and it’s happening to thousands of people right now in 2026 because American Express charges $0.0006 per point (capped at $99) to cover the federal excise tax on points transfers. Here’s the blunt truth: you can avoid this fee entirely, and I’m going to show you exactly how.
Photo by Precondo CA on Unsplash
What Is the Amex Excise Tax Offset Fee?
This isn’t a new fee—it’s been around since 2020—but it’s catching more people off guard in 2026 because Amex has been pushing more cardholders toward transfer partners. The fee is triggered by the federal excise tax (FET) that airlines and hotels must pay on the value of points they issue. Instead of eating that cost, Amex passes it to you.
Here’s the math: For every point you transfer to an airline or hotel partner, Amex charges $0.0006. Transfer 100,000 points? That’s $60. Transfer 165,000 points? You hit the $99 cap. For reference, that’s the same as a one-way checked bag fee on some airlines.
The fee applies to transfers to all airline and hotel partners: Aeroplan, Avianca LifeMiles, British Airways Avios, Delta SkyMiles, Hilton Honors, Marriott Bonvoy, and everyone else on the Amex transfer list. It does not apply when you redeem points directly through Amex Travel for flights, hotels, or statement credits.
The 2026 Context: Why This Matters Right Now
I’m writing this on April 27, 2026, and three things make this fee especially painful this year:
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Transfer bonuses are back in full force. Amex has been running 25-30% transfer bonuses to partners like British Airways and Air Canada since January. More people are transferring larger chunks of points, which means more people are hitting that $99 cap.
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Inflation on award prices. Award seats on popular routes (New York to London, Los Angeles to Tokyo) have gone up 15-20% since 2024. You’re already paying more miles—now you’re paying cash on top of that.
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Amex raised annual fees. The Platinum Card’s annual fee is now $695 (up from $695 in 2023, but with fewer credits that actually offset it). Every dollar counts.
How to Avoid the Excise Tax Offset Fee (3 Proven Methods)
I’ve tested all three of these methods personally. They work.
Method 1: Use the “Marriott Bonvoy” Workaround
This is the most popular strategy, and it works because Marriott is a hotel partner, not an airline partner. Here’s the trick:
- Transfer your Amex points to Marriott Bonvoy (no excise fee).
- Then transfer Marriott points to an airline partner (Marriott absorbs the excise tax on their end).
The catch? Marriott’s transfer ratio is terrible: 3 Marriott points = 1 airline mile for most partners. But if you’re transferring a large balance and the $99 cap would apply, this can still work in your favor.
Example: You want to transfer 180,000 Amex points to Delta SkyMiles. Direct transfer: $99 fee (capped). Alternative: Transfer 180,000 Amex points to Marriott (free), then transfer 60,000 Marriott points to Delta (you get 20,000 Delta miles). You lose 160,000 Delta miles compared to a direct transfer. Not worth it unless you have a specific need.
Best for: Small transfers (under 30,000 points) where the math works out.
Method 2: Book Through Amex Travel Instead
This is the simplest solution. When you book flights or hotels directly through Amex Travel using your points, the excise tax offset fee does not apply. You pay the exact point amount shown.
Pros:
- Zero fees on any booking
- You still earn points on the cash portion (if any)
- Amex Platinum gives you 5x points on flights booked through Amex Travel
Cons:
- You don’t get access to airline elite benefits (upgrades, priority boarding) unless you add your frequent flyer number
- Amex Travel pricing can be 5-10% higher than booking direct
- No access to partner award space (you can’t book ANA first class through Amex Travel, for example)
Best for: Domestic flights and simple itineraries where you don’t need partner award space.
Method 3: Transfer in Smaller Batches (The “Salami Slice”)
This one is tedious but effective. The fee is $0.0006 per point, with a maximum of $99 per transfer. But here’s the loophole: the $99 cap is per transfer, not per day or per account.
So if you need to transfer 200,000 points, instead of doing one transfer (fee: $99), you can do four transfers of 50,000 points each. Each transfer costs $30 ($0.0006 × 50,000). Total: $120. Wait—that’s worse.
Actually, the cap works against you on large transfers. The fee is linear until you hit $99. So this method only helps if you’re transferring a small amount where the fee would be minimal anyway.
Real scenario where this helps: You’re transferring 10,000 points to test a booking. Fee: $6. That’s annoying but not terrible. If you were transferring 165,000 points, you’d pay $99 no matter what.
Best for: Small test transfers or when you’re moving points incrementally over several days.
Comparison Table: Which Method Should You Use?
| Method | Fee | Best Transfer Size | Complexity | Best For |
|---|---|---|---|---|
| Direct Transfer to Airline | $0.0006/point (cap $99) | Any size | Simple | Large transfers where $99 is acceptable |
| Marriott Workaround | $0 (but terrible ratio) | Under 30k points | Medium | Small transfers to airlines you use |
| Amex Travel Booking | $0 | Any size | Simple | Domestic flights, no partner needs |
| Salami Slice | $0.0006/point (no cap savings) | Under 20k points | Tedious | Test transfers only |
Photo by Anton Shuvalov on Unsplash
When Should You Just Pay the Fee?
I’m not going to tell you to always avoid the fee. Sometimes paying $60 or $99 is the right move. Here’s when:
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You’re transferring to a high-value partner. ANA first class to Tokyo can cost 120,000-150,000 points one way. That’s a $72-90 fee. But the cash value of that flight is $8,000+. Pay the fee.
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You’re booking last-minute. If you need to transfer points right now to secure an award seat that’s about to disappear, don’t waste time with workarounds. Pay the $99 and lock it in.
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You’re transferring to a partner with a transfer bonus. If British Airways is offering a 30% bonus on Amex transfers, that 100,000-point transfer becomes 130,000 Avios. The $60 fee is 0.06% of the value you’re getting. Worth it.
Real Numbers: What I Paid in 2026
Last month, I transferred 80,000 Amex points to Air Canada Aeroplan to book a business class seat from Newark to Frankfurt. The fee: $48. I paid it because the cash price of that seat was $3,200. The $48 felt like a rounding error.
Two weeks later, I transferred 15,000 points to Avianca LifeMiles for a domestic flight in Colombia. Fee: $9. I paid it because the Marriott workaround would have cost me more in lost value.
But last week, I transferred 200,000 points to British Airways Avios during a 30% bonus promotion. The fee: $99. That hurt, but I got 260,000 Avios out of it. I’d do it again.
FAQ: Your Questions Answered
Q: Does the excise tax fee apply to all Amex cards? A: Yes. Every card that earns Membership Rewards points—Platinum, Gold, Green, Everyday Preferred, Business Platinum—charges this fee on transfers to airline and hotel partners. The fee structure is identical across all cards.
Q: Can I avoid the fee by transferring to a family member’s account? A: No. Amex does not allow you to transfer points to another person’s loyalty account. You can only transfer to accounts in your own name.
Q: Does the fee apply to transfers to Hilton or Marriott? A: Yes. Hotel partners are also subject to the excise tax offset fee. The same $0.0006 per point rate applies. However, Marriott’s internal transfer program (Marriott to airlines) does not trigger an additional fee from Amex.
Q: What if I use my points for statement credits instead of transfers? A: No fee applies to statement credits, but the value is terrible. Statement credits give you 0.6 cents per point. Transferring to a good airline partner gives you 1.5-2.5 cents per point. Don’t use statement credits unless you’re desperate.
Q: Is there any way to get the fee refunded? A: No. Amex does not refund excise tax offset fees once the transfer is complete. Always check the fee amount before confirming the transfer.
The Bottom Line
The Amex excise tax offset fee is annoying, but it’s not a reason to stop using your Membership Rewards points. The fee is $0.0006 per point, capped at $99 per transfer. For most people, the value you get from transferring to airline partners far exceeds this cost.
If you’re transferring under 30,000 points, consider using Amex Travel instead. If you’re transferring a massive amount (200,000+), just pay the $99 and move on. The Marriott workaround sounds clever but usually costs you more in lost value than you save in fees.
For 2026, the smartest move is to plan your transfers during bonus promotions when the extra points outweigh the fee. And always check the fee before clicking “confirm”—it shows up right before you finalize the transfer.
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Last updated: 2026-04-27