Texas residents pay $2.40 per gallon in taxes on distilled spirits

Texas distilled spirits drinkers pay the equivalent of $2.40 per gallon in state excise taxes on their stiff drinks, according to a new analysis from the Tax Foundation based on January 2020 data.

The distilled spirits tax in Texas was 46th highest among the 50 states, the Tax Foundation study found.

How distilled spirits are taxed varies among the states, with some states basing levies on volume and others imposing per-bottle fees or retailer license fees. States can also impose taxes based on alcohol content and the location of purchase, the analysis reports.

Two states – New Hampshire and Wyoming – have government-run stores that sell distilled spirits at prices that are comparable to buying the products without taxes, according to the analysis.

2020 Distilled Spirits Excise Taxes by State

Rank State Distilled Spirits Tax (Dollars per Gallon)
1 Washington $33.22
2 Oregon $21.95
3 Virginia $19.89
4 Alabama $19.11
5 Utah $15.92
6 North Carolina $14.58
7 Iowa $13.03
8 Alaska $12.80
9 Maine $11.96
10 Michigan $11.95
11 Idaho $10.91
12 Ohio $9.83
13 Montana $9.75
14 Minnesota $9.01
15 Illinois $8.55
16 Arkansas $8.41
17 Kentucky $8.33
18 Mississippi $8.11
19 Vermont $7.68
20 West Virginia $7.62
21 Pennsylvania $7.21
22 Florida $6.50
23 New York $6.44
24 New Mexico $6.06
25 Hawaii $5.98
26 Oklahoma $5.56
27 New Jersey $5.50
28 South Carolina $5.42
29 (tie) Connecticut $5.40
29 (tie) Rhode Island $5.40
31 North Dakota $5.12
32 Maryland $5.03
33 South Dakota $4.67
34 Delaware $4.50
35 Tennessee $4.46
36 Massachusetts $4.05
37 Georgia $3.79
38 Nebraska $3.75
39 Nevada $3.60
40 California $3.30
41 Wisconsin $3.25
42 Louisiana $3.03
43 Arizona $3.00
44 Indiana $2.68
45 Kansas $2.50
46 Texas $2.40
47 Colorado $2.28
48 Missouri $2.00
49 (tie) New Hampshire N/A
49 (tie) Wyoming N/A

Source: Tax Foundation

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