Texas Alcohol Sales Taxes 2018 Texas: Alcohol Excise Taxes

Texas:

Texas 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 Texas 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.


Texas Alcohol Sales Taxes 2018 Current Texas Alcohol Excise Tax Rates

Texas has average taxes on alcohol compared to other states in the United States

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


Texas Wine sales tax rate
Ranked 45th
highest

Texas Wine Tax - $0.20 / gallon

  Texas' general sales tax of 6.25% also applies to the purchase of wine.

In Texas, wine vendors are responsible for paying a state excise tax of $0.20 per gallon, plus Federal excise taxes, for all wine sold.

Additional Taxes: Over 14% – $0.408/gallon, sparkling wine – $0.516/gallon; 6.7% on-premise tax; $0.05/drink on airline sales


Texas Beer sales tax rate
Ranked 25th
highest

Texas Beer Tax - $0.20 / gallon

  Texas' general sales tax of 6.25% also applies to the purchase of beer.

In Texas, beer vendors are responsible for paying a state excise tax of $0.20 per gallon, plus Federal excise taxes, for all beer sold.

Additional Taxes: 14.95% on-premise tax; $0.05/drink on airline sales


Texas Liquor sales tax rate
Ranked 29th
highest

Texas Liquor Tax - $2.40 / gallon

  Texas' general sales tax of 6.25% also applies to the purchase of liquor.

In Texas, liquor vendors are responsible for paying a state excise tax of $2.40 per gallon, plus Federal excise taxes, for all liquor sold.

Additional Taxes: 6.7% on-premise and $0.05/drink on airline sales


Federal Alcohol Sales Taxes 2018 Federal Alcohol Excise Taxes

The price of all alcohol sold in Texas 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/texas/alcohol