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

Trends in State Tax Policy, 2018

December 14, 2017

Wireless Taxes and Fees in 2017

November 8, 2017

Cigarette Taxes and Cigarette Smuggling by State, 2015

November 6, 2017

Op-ed: Is the Soda Tax Bubble Bursting?

October 16, 2017

How High Are Excise Tax Collections Where You Live?

September 28, 2017

Maine Continues to Discuss Marijuana Legalization Details

September 26, 2017

Analyzing Washington State’s Tax Climate (Video)

September 25, 2017

Sparks Continue to Fly in Oklahoma Cigarette Fee Debate

August 4, 2017

Soda Tax Experiment Failing in Philadelphia Amid Consumer Angst and Revenue Shortfalls

August 3, 2017

Massachusetts Increases Marijuana Tax Rate

August 1, 2017

Oregon’s New Bike Tax and the Future of Transportation Taxes

July 24, 2017

How Are Your State’s Roads Funded?

July 13, 2017

How High Are Vapor Excise Taxes in Your State?

June 29, 2017

A Bevy of Tax Bills To Raise Long-Term Revenue in Delaware

June 28, 2017

State Tax Changes Taking Effect July 1, 2017

June 27, 2017

Oklahoma Cigarette Fee Under Fire

June 26, 2017

South Dakota Lights Up Revenue Uncertainty with Proposed Tobacco Tax Hike

June 23, 2017

Lessons Learned? Nevada Tax Strategy for Recreational and Medical Marijuana

June 23, 2017

How High Are Spirits Taxes in Your State?

June 22, 2017

Statewide Soda Tax Stirs Debate in Massachusetts

June 19, 2017