Alabama State Excise Taxes 2016 - Fuel, Cigarette, and Alcohol Taxes
16.00¢ per gallon
43¢ per pack
$18.22 per gal
$1.70 per gal
$1.05 per gal
What is an Excise Tax?
An excise tax is a tax directly levied on certain goods by a state or federal government. The most prominent excise taxes collected by the Alabama state government are the fuel tax on gasoline and the so-called "sin tax" collected on cigarettes and alcoholic beverages.
An excise tax is not the same thing as the Alabama Sales Tax.The Alabama Sales Tax is collected as a percentage of the final purchase price of all qualifying sales, and is collected directly from the end consumer of the product.
Alabama's excise taxes, on the other hand, are flat per-unit taxes that must be paid directly to the Alabama government by the merchant before the goods can be sold. Merchants may be required to attach tax stamps to taxable merchandise to show that the excise tax was paid.
Even though excise taxes are collected from businesses, virtually all Alabama merchants pass on the excise tax to the customer through higher prices for the taxed goods.
Alabama per capita excise tax
Alabama collects an average of $510 in yearly excise taxes per capita, higher then 60% of the other 50 states.
Alabama General Excise Taxes - Gasoline, Cigarettes, and More
Alabama collects general excise taxes on the sale of motor fuel (gasoline and diesel), cigarettes (per pack), and cell phone service plans. Other general taxes, similar to excise taxes, may be collected on other items including gas guzzlers, vehicle sales, transportation tickets, firearms, tanning salons, and more.
Alabama Gas Tax40th highest gas tax
The Alabama excise tax on gasoline is 16.00¢ per gallon, one of the lowest gas taxes in the country. Alabama's excise tax on gasoline is ranked #40 out of the 50 states. The Alabama gas tax is included in the pump price at all gas stations in Alabama.
Alabama Cigarette Tax46th highest cigarette tax
The Alabama excise tax on cigarettes is $0.43 per 20 cigarettes, one of the lowest cigarettes taxes in the country. Alabama's excise tax on cigarettes is ranked #46 out of the 50 states. The Alabama cigarette tax of $0.43 is applied to every 20 cigarettes sold (the size of an average pack of cigarettes). If a pack contains more then 20 cigarettes, a higher excise tax will be collected.
Alabama Cellphone Tax38th highest cellphone tax
The average tax collected on cell phone plans in Alabama is $7.45 per phone service plan, lower then 76% of the other 50 states. Alabama's average cellphone tax is ranked #38 out of the 50 states. The Alabama cellphone tax is already included in the service plan price you pay to your service provider, and may be listed as "Misc. taxes and Fees" or "Other" on your monthly bill.
Alabama Car Tax
Alabama collects a registration fee and a title fee on the sale or transfer of cars and motorcycles, which are essentially renamed excise taxes. Unlike standard excise taxes, however, the end consumer must pay the tax directly to the Alabama Department of Transportation and receive documentation (registration and title papers) proving the fees were paid.
Alabama Alcohol Excise Taxes - Liquor, Wine, and Beer
Alabama collects special excise taxes on the sale of all types of alcohol, subdivided into specific taxes on wine, beer, and liquor (hard alcohol other then wine and beer). Alcohol taxes are sometimes collectively referred to as "sin taxes", which also include excise taxes on cigarettes, gambling, drugs, and certain other items.
Please note that the IRS also collects a federal excise taxes on alcoholic beverages, which are included separately from Alabama's alcohol taxes in the final purchase price.
Alabama Beer Tax3rd highest beer tax
The Alabama excise tax on beer is $1.05 per gallon, one of the highest beer taxes in the country. Alabama's beer excise tax is ranked #3 out of the 50 states. Alabama's beer tax includes a local surtax of $0.52 imposed statewide. The Alabama beer tax is already added to the purchase price of all beer bought in Alabama, whether in kegs, bottles, or cans.
Alabama Wine Tax5th highest wine tax
The Alabama excise tax on Wine is $1.70 per gallon, one of the highest wine taxes in the country. Alabama's excise tax on wine is ranked #5 out of the 50 states. The Alabama wine tax is already added to the purchase price of all wine bought in Alabama.
Alabama Liquor Tax4th highest liquor tax
The Alabama excise tax on liquor is $18.22 per gallon, one of the highest liquor taxes in the country. Alabama's excise tax on Spirits is ranked #4 out of the 50 states. All spirits and hard alcohol in Alabama are sold by state-owned distributers. Tne excise tax is calculated by the Distilled Spirits Council of the United States (DISCUS). The Alabama liquor tax applies to all hard alcohol (alchoholic beverages other then beer and wine), and is already included in the purchase price by the retailer.
Alabama Excise Tax Deductions & Refunds
Can I deduct my Alabama Excise taxes?
Unlike the Alabama Sales Tax, excise taxes are not generally deductible on Alabama income tax returns or on your federal tax return. However, the IRS occasionally allows certain excise taxes to be deducted for certain tax years.
- Vehicle Tax Deduction
- Alabama sales and excise taxes on cars or vehicles bought during 2009 may be deducted once from your federal tax return. You cannot deduct excise taxes for vehicles bought during other years.
- Phone Tax Deduction
- You may deduct excise taxes paid on long-distance phone calls between the years of 2003 and 2006 from your federal tax return.
Can I get a Alabama Excise Tax Refund?
While sales tax refunds are available for goods that are purchased in Alabama and exported, Alabama excise taxes paid on goods are generally non-refundable. Incentives may exist allowing certain state of federal excise taxes to be refunded on goods bought for specific uses, but such incentives change frequently.
Alabama Excise Tax - References
- Tax Foundation, State Excise Tax Collections Per Capita, Updated 2009
- Tax Foundation, Gasoline Excise Taxes, Updated 2012
- Tax Foundation, Cigarette Excise Taxes, Updated 2012
- Tax Foundation, Liquor Excise Taxes, Updated 2011
- Tax Foundation, Beer Excise Tax Rates, Updated 2012
- Tax Foundation, Average Wine Taxes, Updated 2011
- Tax Foundation, Average Cell Phone Taxes, Updated 2010