Center for State Tax Policy

Excise Taxes

Excise taxes are special taxes on specific goods or activities—such as gasoline, tobacco or gambling—rather than general tax bases such as income or consumption. Excise taxes are often included in the final price of products and services, and are often hidden to consumers.

Overall, excise taxes account for less than 10 percent of all federal receipts. All 50 states and many local municipalities levy excise taxes of various kinds. Studies show excise taxes are disproportionately borne by low-income taxpayers, making them one of the most regressive components of the U.S. tax system.


Related Articles

States Taxing Sports Betting: Lessons From Other Revenue Streams

May 23, 2018

Soda Taxes Are Not a Sensible Solution to Combat Obesity

May 17, 2018

D.C. Proposes Sales Tax Increase, Other Tax Changes

May 16, 2018

D.C. Council Forwards Hefty Cigarette Tax Increase

May 15, 2018

Increasing the Cigarette Tax to Fund Road Maintenance in Mississippi? Not So Fast.

May 1, 2018

How High Are Recreational Marijuana Taxes in Your State?

April 26, 2018

Should Bottled Spring Water Be Subject to Severance, Extraction, or Excise Taxes?

April 23, 2018

Kentucky Legislature Overrides Governor’s Veto to Pass Tax Reform Package

April 16, 2018

Mississippi House Speaker Proposes “Tax Swap” to Fund Bridge Repair

April 16, 2018

Three Tax Plans Under Consideration in Missouri

April 11, 2018

Vapor Taxes by State, 2018

March 28, 2018

Gross Receipts Taxes in the Marijuana Industry Found to Cause Distortionary Effects

March 26, 2018

How High are Spirits Taxes in Your State?

March 22, 2018

Facts and Figures 2018: How Does Your State Compare?

March 21, 2018

Kentucky Needs Tax Reform, Not Cigarette Tax Hikes

February 28, 2018

Watch: Tax Foundation Excise Tax Event

February 26, 2018

Mississippi’s Pro-Growth Tax Swap Proposal

February 15, 2018

Testimony: Should D.C. Have the Highest State Cigarette Tax in the Country?

February 1, 2018

How High Are Cigarette Tax Rates in Your State?

January 25, 2018

State Tax Changes That Took Effect on January 1, 2018

January 2, 2018