Minnesota State Excise Taxes 2016 - Fuel, Cigarette, and Alcohol Taxes
28.50¢ per gallon
$2.90 per pack
$8.59 per gal
$1.17 per gal
47¢ per gal
- What are Minnesota's Excise Taxes?
- Minnesota General Excise Taxes
- Minnesota 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 Minnesota 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 Minnesota Sales Tax.The Minnesota 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.
Minnesota's excise taxes, on the other hand, are flat per-unit taxes that must be paid directly to the Minnesota 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 Minnesota merchants pass on the excise tax to the customer through higher prices for the taxed goods.
Minnesota per capita excise tax
Minnesota collects an average of $599 in yearly excise taxes per capita, one of the highest average per capita excise taxes in the country.
Minnesota General Excise Taxes - Gasoline, Cigarettes, and More
Minnesota 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, tanning salons, vehicle sales, firearms, transportation tickets, and more.
Minnesota Gas Tax20th highest gas tax
The Minnesota excise tax on gasoline is 28.50¢ per gallon, higher then 60% of the other 50 states. Minnesota's excise tax on gasoline is ranked #20 out of the 50 states. The Minnesota gas tax is included in the pump price at all gas stations in Minnesota.
Minnesota Cigarette Tax7th highest cigarette tax
The Minnesota excise tax on cigarettes is $2.90 per 20 cigarettes, one of the highest cigarettes taxes in the country. Minnesota's excise tax on cigarettes is ranked #7 out of the 50 states. The Minnesota cigarette tax of $2.90 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.
Minnesota Cellphone Tax26th highest cellphone tax
The average tax collected on cell phone plans in Minnesota is $9.38 per phone service plan, lower then 52% of the other 50 states. Minnesota's average cellphone tax is ranked #26 out of the 50 states. The Minnesota 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.
Minnesota Car Tax
Minnesota 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 Minnesota Department of Transportation and receive documentation (registration and title papers) proving the fees were paid.
Minnesota Alcohol Excise Taxes - Liquor, Wine, and Beer
Minnesota 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 Minnesota's alcohol taxes in the final purchase price.
Minnesota Beer Tax11th highest beer tax
The Minnesota excise tax on beer is $0.47 per gallon, higher then 78% of the other 50 states. Minnesota's beer excise tax is ranked #11 out of the 50 states. The Minnesota beer tax is already added to the purchase price of all beer bought in Minnesota, whether in kegs, bottles, or cans.
Minnesota Wine Tax16th highest wine tax
The Minnesota excise tax on Wine is $1.17 per gallon, higher then 68% of the other 50 states. Minnesota's excise tax on wine is ranked #16 out of the 50 states. The Minnesota excise tax rate on wine includes a sales tax specifically for alcoholic beverages and case / bottle fees that can vary on the size of the container. The Minnesota wine tax is already added to the purchase price of all wine bought in Minnesota.
Minnesota Liquor Tax13th highest liquor tax
The Minnesota excise tax on liquor is $8.59 per gallon, higher then 74% of the other 50 states. Minnesota's excise tax on Spirits is ranked #13 out of the 50 states. The Minnesota excise tax rate on hard alcohol includes a sales tax specifically for alcoholic beverages and case / bottle fees that can vary on the size of the container. The Minnesota 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.
Minnesota Excise Tax Deductions & Refunds
Can I deduct my Minnesota Excise taxes?
Unlike the Minnesota Sales Tax, excise taxes are not generally deductible on Minnesota 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
- Minnesota 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 Minnesota Excise Tax Refund?
While sales tax refunds are available for goods that are purchased in Minnesota and exported, Minnesota 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.
Minnesota 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