Texas State Excise Taxes 2016 - Fuel, Cigarette, and Alcohol Taxes
20.00¢ per gallon
$1.41 per pack
$2.40 per gal
20¢ per gal
20¢ 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 Texas 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 Texas Sales Tax.The Texas 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.
Texas' excise taxes, on the other hand, are flat per-unit taxes that must be paid directly to the Texas 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 Texas merchants pass on the excise tax to the customer through higher prices for the taxed goods.
Texas per capita excise tax
Texas collects an average of $543 in yearly excise taxes per capita, higher then 64% of the other 50 states.
Texas General Excise Taxes - Gasoline, Cigarettes, and More
Texas 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, tanning salons, transportation tickets, gas guzzlers, and more.
Texas Gas Tax42nd highest gas tax
The Texas excise tax on gasoline is 20.00¢ per gallon, one of the lowest gas taxes in the country. Texas' excise tax on gasoline is ranked #42 out of the 50 states. The Texas gas tax is included in the pump price at all gas stations in Texas.
Texas Cigarette Tax24th highest cigarette tax
The Texas excise tax on cigarettes is $1.41 per 20 cigarettes, higher then 52% of the other 50 states. Texas' excise tax on cigarettes is ranked #24 out of the 50 states. The Texas cigarette tax of $1.41 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.
Texas Cellphone Tax10th highest cellphone tax
The average tax collected on cell phone plans in Texas is $12.43 per phone service plan, one of the highest cellphone taxes in the country. Texas' average cellphone tax is ranked #10 out of the 50 states. The Texas 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.
Texas Car Tax
Texas 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 Texas Department of Transportation and receive documentation (registration and title papers) proving the fees were paid.
Texas Alcohol Excise Taxes - Liquor, Wine, and Beer
Texas 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 Texas' alcohol taxes in the final purchase price.
Texas Beer Tax28th highest beer tax
The Texas excise tax on beer is $0.20 per gallon, lower then 56% of the other 50 states. Texas' beer excise tax is ranked #28 out of the 50 states. The Texas beer tax is already added to the purchase price of all beer bought in Texas, whether in kegs, bottles, or cans.
Texas Wine Tax43rd highest wine tax
The Texas excise tax on Wine is $0.20 per gallon, one of the lowest wine taxes in the country. Texas' excise tax on wine is ranked #43 out of the 50 states. The Texas wine tax is already added to the purchase price of all wine bought in Texas.
Texas Liquor Tax45th highest liquor tax
The Texas excise tax on liquor is $2.40 per gallon, one of the lowest liquor taxes in the country. Texas' excise tax on Spirits is ranked #45 out of the 50 states. The Texas state taxes on hard alcohol vary based on alcohol content, place of production, size of container, and place purchased. The Texas 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.
Texas Excise Tax Deductions & Refunds
Can I deduct my Texas Excise taxes?
Unlike the Texas Sales Tax, excise taxes are not generally deductible on Texas 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
- Texas 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 Texas Excise Tax Refund?
While sales tax refunds are available for goods that are purchased in Texas and exported, Texas 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.
Texas 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