North Carolina State Excise Taxes 2016 - Fuel, Cigarette, and Alcohol Taxes
37.50¢ per gallon
45¢ per pack
$12.30 per gal
$1.00 per gal
62¢ per gal
- What are North Carolina's Excise Taxes?
- North Carolina General Excise Taxes
- North Carolina 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 North Carolina 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 North Carolina Sales Tax.The North Carolina 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.
North Carolina's excise taxes, on the other hand, are flat per-unit taxes that must be paid directly to the North Carolina 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 North Carolina merchants pass on the excise tax to the customer through higher prices for the taxed goods.
North Carolina per capita excise tax
North Carolina collects an average of $398 in yearly excise taxes per capita, lower then 64% of the other 50 states.
North Carolina General Excise Taxes - Gasoline, Cigarettes, and More
North Carolina 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 tanning salons, vehicle sales, transportation tickets, gas guzzlers, firearms, and more.
North Carolina Gas Tax6th highest gas tax
The North Carolina excise tax on gasoline is 37.50¢ per gallon, one of the highest gas taxes in the country. North Carolina's excise tax on gasoline is ranked #6 out of the 50 states. The North Carolina gas tax is included in the pump price at all gas stations in North Carolina.
North Carolina Cigarette Tax44th highest cigarette tax
The North Carolina excise tax on cigarettes is $0.45 per 20 cigarettes, one of the lowest cigarettes taxes in the country. North Carolina's excise tax on cigarettes is ranked #44 out of the 50 states. The North Carolina cigarette tax of $0.45 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.
North Carolina Cellphone Tax25th highest cellphone tax
The average tax collected on cell phone plans in North Carolina is $9.43 per phone service plan, higher then 50% of the other 50 states. North Carolina's average cellphone tax is ranked #25 out of the 50 states. The North Carolina 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.
North Carolina Car Tax
North Carolina 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 North Carolina Department of Transportation and receive documentation (registration and title papers) proving the fees were paid.
North Carolina Alcohol Excise Taxes - Liquor, Wine, and Beer
North Carolina 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 North Carolina's alcohol taxes in the final purchase price.
North Carolina Beer Tax8th highest beer tax
The North Carolina excise tax on beer is $0.62 per gallon, one of the highest beer taxes in the country. North Carolina's beer excise tax is ranked #8 out of the 50 states. The North Carolina beer tax is already added to the purchase price of all beer bought in North Carolina, whether in kegs, bottles, or cans.
North Carolina Wine Tax21st highest wine tax
The North Carolina excise tax on Wine is $1.00 per gallon, higher then 58% of the other 50 states. North Carolina's excise tax on wine is ranked #21 out of the 50 states. The North Carolina wine tax is already added to the purchase price of all wine bought in North Carolina.
North Carolina Liquor Tax7th highest liquor tax
The North Carolina excise tax on liquor is $12.30 per gallon, one of the highest liquor taxes in the country. North Carolina's excise tax on Spirits is ranked #7 out of the 50 states. All liquor stores in North Carolina are state-owned, so excise taxes for hard alcohol sales are set by the Distilled Spirits Council of the United States (DISCUS). The North Carolina 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.
North Carolina Excise Tax Deductions & Refunds
Can I deduct my North Carolina Excise taxes?
Unlike the North Carolina Sales Tax, excise taxes are not generally deductible on North Carolina 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
- North Carolina 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 North Carolina Excise Tax Refund?
While sales tax refunds are available for goods that are purchased in North Carolina and exported, North Carolina 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.
North Carolina 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