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

Iowa Governor Proposes Second Round of Tax Reform

Proposal to Increase New York Beer Tax

Tax Trends at the Dawn of 2020

Virginia Governor Looks to Excise Taxes

State Tax Changes as of January 1, 2020

Kansas Tax Modernization: A Framework for Stable, Fair, Pro-Growth Reform

Cigarette Taxes and Cigarette Smuggling by State, 2017

Washington D.C.’s Beverage Excise Tax Is Not Good Policy

Excise Taxes Not the Answer for Streaming Services

Wireless Taxes and Fees Jump Sharply In 2019

Results of 2019 State and Local Tax Ballot Initiatives

How Does Your State Treat Groceries, Candy, and Soda?

State and Local Tax Ballot Measures to Watch on Election Day 2019

Understanding the Price of Your Plane Ticket

California Cities Want to Cash in on Marijuana

States Move on Recreational Marijuana

Washington Voters to Weigh in on 12 Tax Questions This November

Colorado Voters to Consider Sports Betting

Marijuana Revenues Could Take a Hit

No Good Options as Chicago Seeks Revenue