Kentucky State Excise Taxes 2016 - Fuel, Cigarette, and Alcohol Taxes
26.20¢ per gallon
60¢ per pack
$7.35 per gal
$3.18 per gal
83¢ per gal
- What are Kentucky's Excise Taxes?
- Kentucky General Excise Taxes
- Kentucky Alcohol Taxes
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 Kentucky 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 Kentucky Sales Tax.The Kentucky 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.
Kentucky's excise taxes, on the other hand, are flat per-unit taxes that must be paid directly to the Kentucky 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 Kentucky merchants pass on the excise tax to the customer through higher prices for the taxed goods.
Kentucky per capita excise tax
Kentucky collects an average of $545 in yearly excise taxes per capita, higher then 66% of the other 50 states.
Kentucky General Excise Taxes - Gasoline, Cigarettes, and More
Kentucky 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 firearms, vehicle sales, transportation tickets, gas guzzlers, tanning salons, and more.
Kentucky Gas Tax23rd highest gas tax
The Kentucky excise tax on gasoline is 26.20¢ per gallon, higher then 54% of the other 50 states. Kentucky's excise tax on gasoline is ranked #23 out of the 50 states. The Kentucky gas tax is included in the pump price at all gas stations in Kentucky.
Kentucky Cigarette Tax39th highest cigarette tax
The Kentucky excise tax on cigarettes is $0.60 per 20 cigarettes, lower then 78% of the other 50 states. Kentucky's excise tax on cigarettes is ranked #39 out of the 50 states. The Kentucky cigarette tax of $0.60 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.
Kentucky Cellphone Tax21st highest cellphone tax
The average tax collected on cell phone plans in Kentucky is $10.42 per phone service plan, higher then 58% of the other 50 states. Kentucky's average cellphone tax is ranked #21 out of the 50 states. The Kentucky 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.
Kentucky Car Tax
Kentucky 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 Kentucky Department of Transportation and receive documentation (registration and title papers) proving the fees were paid.
Kentucky Alcohol Excise Taxes - Liquor, Wine, and Beer
Kentucky 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 Kentucky's alcohol taxes in the final purchase price.
Kentucky Beer Tax6th highest beer tax
The Kentucky excise tax on beer is $0.83 per gallon, one of the highest beer taxes in the country. Kentucky's beer excise tax is ranked #6 out of the 50 states. In addition to the excise levied on beer, Kentucky charges an additional 11% tax on all alcoholic beverages. The Kentucky beer tax is already added to the purchase price of all beer bought in Kentucky, whether in kegs, bottles, or cans.
Kentucky Wine Tax1st highest wine tax
The Kentucky excise tax on Wine is $3.18 per gallon, one of the highest wine taxes in the country. Kentucky's excise tax on wine is ranked #1 out of the 50 states. In addition to the excise levied on wine, Kentucky charges an additional 11% tax on all alcoholic beverages. This amount is converted into a per-gallon rate and included here. The Kentucky wine tax is already added to the purchase price of all wine bought in Kentucky.
Kentucky Liquor Tax17th highest liquor tax
The Kentucky excise tax on liquor is $7.35 per gallon, higher then 66% of the other 50 states. Kentucky's excise tax on Spirits is ranked #17 out of the 50 states. In addition to the excise levied on spirits, Kentucky charges an additional 11% tax on all alcoholic beverages. This is included in our excise tax number as a gallonage rate. The Kentucky 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.
Kentucky Excise Tax Deductions & Refunds
Can I deduct my Kentucky Excise taxes?
Unlike the Kentucky Sales Tax, excise taxes are not generally deductible on Kentucky 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
- Kentucky 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 Kentucky Excise Tax Refund?
While sales tax refunds are available for goods that are purchased in Kentucky and exported, Kentucky 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.
Kentucky 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