New Jersey Alcohol Sales Taxes 2018 New Jersey: Alcohol Excise Taxes

New Jersey:

New Jersey Liquor, Wine, and Beer Taxes

In addition to (or instead of) traditional sales taxes, alcoholic beverages like wine, beer, and liquor are subject to excise taxes on both the New Jersey and Federal levels. Excise taxes on alcohol are implemented by every state, as are excises on cigarettes and motor fuels like gasoline.

Excise taxes are applied on a per-unit basis, generally per gallon for liquids, and unlike sales taxes are collected from the merchant who sells the alcohol rather than the end consumer. However, in almost all cases, excise taxes are passed on directly to the consumer in the form of raised alcohol prices.


New Jersey Alcohol Sales Taxes 2018 Current New Jersey Alcohol Excise Tax Rates

New Jersey has relatively high taxes on alcohol compared to other states in the United States

The primary excise taxes on alcohol in New Jersey are on wine, beer, and liquor (which includes most types of hard alcohol).


New Jersey Wine sales tax rate
Ranked 19th
highest

New Jersey Wine Tax - $0.88 / gallon

  New Jersey's general sales tax of 6.625% also applies to the purchase of wine.

In New Jersey, wine vendors are responsible for paying a state excise tax of $0.88 per gallon, plus Federal excise taxes, for all wine sold.


New Jersey Beer sales tax rate
Ranked 39th
highest

New Jersey Beer Tax - $0.12 / gallon

  New Jersey's general sales tax of 6.625% also applies to the purchase of beer.

In New Jersey, beer vendors are responsible for paying a state excise tax of $0.12 per gallon, plus Federal excise taxes, for all beer sold.


New Jersey Liquor sales tax rate
Ranked 9th
highest

New Jersey Liquor Tax - $5.50 / gallon

  New Jersey's general sales tax of 6.625% also applies to the purchase of liquor.

In New Jersey, liquor vendors are responsible for paying a state excise tax of $5.50 per gallon, plus Federal excise taxes, for all liquor sold.


Federal Alcohol Sales Taxes 2018 Federal Alcohol Excise Taxes

The price of all alcohol sold in New Jersey also includes Federal alcohol excise taxes, which are collected from the brewer / distiller by the Alcohol and Tobacco Tax and Trade Bureau and generally passed on to the consumer in the beverage's price. Some tax discounts are available to small brewers. Federal excise tax rates on beer, wine, and liquor are as follows:

Beer $18.00 per 31-gallon barrel, or $0.05 per 12-oz can
Wine $1.07 - $3.40 per gallon, or $0.21 - $0.67 per 750ml bottle, depending on alcohol content
Distilled Spirits $13.50 per proof-gallon, or $2.14 per 750ml 80-proof bottle

† A proof gallon is a gallon of liquid that is 100 proof, or 50% alcohol. The tax is adjusted, depending on the percentage of alcohol of the product.



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Source: http://www.salestaxhandbook.com/new-jersey/alcohol