The Tax Bite
on Everyday Products….LIQUOR

Taxes on distilled spirits are among the highest taxes imposed on any product. On average 60 percent of what you pay for a bottle of distilled spirits goes to the government in taxes rather than for the liquor.

Based on the most recent available data, the typical retail price of a 750-Milliliter bottle of 80-proof distilled spirits was $9.37. This includes a special federal excise tax on the bottle of $2.16, accounting for 23 percent of the total price.

In addition, state and local excise taxes on liquor plus sales taxes would average another $1.98, or 21 percent of the total price. Together, these federal, state and local excise and sales taxes constitute 44 percent of what you pay for a bottle of liquor. Consumers nationwide currently pay almost $10 billion per year in such taxes.

But that is not all. Taxes imposed on liquor producers, such as federal and state income taxes, federal payroll taxes, property taxes and other taxes account for the other $1.62 in the total price of a bottle of liquor.

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