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Texas State Excise Taxes 2024 - Fuel, Cigarette, and Alcohol Taxes

Gasoline:
20.00¢ per gallon		 Cigarettes:
$1.41 per pack		 Liquor:
$2.40 per gal		 Wine:
20¢ per gal		 Beer:
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.

Gas sales tax in Texas - Texas oil and gasoline excise taxes

Texas Gas Tax

42nd 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.

Tax on buying cigarettes in Texas - Texas cigarette excise taxes

Texas Cigarette Tax

24th 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.

Tax on phone service in Texas - Texas phone taxes

Texas Cellphone Tax

10th 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.

Automobile / Vehicle Tax In Texas - Texas car road tax

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.

Tax on beer in Texas - Texas beer excise taxes

Texas Beer Tax

28th 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.

Tax on buying wine in Texas - Texas wine excise taxes

Texas Wine Tax

43rd 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.

Tax on buying liquor in Texas - Texas Liquor & Spirits excise taxes

Texas Liquor Tax

45th 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.

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Texas Excise Tax - References

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