Iowa, Illinois rank in top-half of states with the highest ‘sin taxes’

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

You might be at a gas station or local liquor store, and realize you’re running low on cigarettes. You consult the options behind the counter, hear the price from the store clerk and accept it as fact. While the expense isn’t likely subject to negotiation, it isn’t simply a function of profit or sales maximization either.

The fact is: Certain products carry an especially high ‘sin tax.’ Some sin taxes are still pretty low — like $0.02 per gallon on beer in Wyoming. Others, like the $14.24 per gallon liquor tax in Washington, are much higher.

To see how the U.S. states rank in terms of sin taxes levied, the team at Credio looked at taxes on tobacco, liquor, wine and beer in each state using data from TaxPolicyCenter.org and the Federation of Tax Administrators. The states are ranked from lowest to highest aggregate sin tax, with rates represented in dollars per unit.

Note: The N/A notation for a given tax indicates that the state government controls all sales. Given the pricing controls that are in place for these states, no direct tax rate is calculated. The sin tax is then based on the tax rates for the other available categories. Revenue in these states is generated from various other taxes, fees, price mark-ups and net profits.

#50. Wyoming

 

Tobacco Tax (Dollars per Pack): $0.60
Liquor Tax (Dollars per Gallon): N/A
Wine Tax (Dollars per Gallon): N/A
Beer Tax (Dollars per Gallon): $0.02
State Sales Tax: 4.00%

#49. Missouri

 

Tobacco Tax (Dollars per Pack): $0.17
Liquor Tax (Dollars per Gallon): $2.00
Wine Tax (Dollars per Gallon): $0.42
Beer Tax (Dollars per Gallon): $0.06
State Sales Tax: 4.23%

#48. Pennsylvania

 

Tobacco Tax (Dollars per Pack): $1.60
Liquor Tax (Dollars per Gallon): N/A
Wine Tax (Dollars per Gallon): N/A
Beer Tax (Dollars per Gallon): $0.08
State Sales Tax: 6.00%

#47. Idaho

 

Tobacco Tax (Dollars per Pack): $0.57
Liquor Tax (Dollars per Gallon): N/A
Wine Tax (Dollars per Gallon): $0.45
Beer Tax (Dollars per Gallon): $0.15
State Sales Tax: 6.00%

#46. Colorado

 

Tobacco Tax (Dollars per Pack): $0.84
Liquor Tax (Dollars per Gallon): $2.28
Wine Tax (Dollars per Gallon): $0.28
Beer Tax (Dollars per Gallon): $0.08
State Sales Tax: 2.90%

#45. Kentucky

 

Tobacco Tax (Dollars per Pack): $0.60
Liquor Tax (Dollars per Gallon): $1.92
Wine Tax (Dollars per Gallon): $0.50
Beer Tax (Dollars per Gallon): $0.08
State Sales Tax: 6.00%

#44. Ohio

 

Tobacco Tax (Dollars per Pack): $1.25
Liquor Tax (Dollars per Gallon): N/A
Wine Tax (Dollars per Gallon): $0.32
Beer Tax (Dollars per Gallon): $0.18
State Sales Tax: 5.75%

#43. Oregon

 

Tobacco Tax (Dollars per Pack): $1.31
Liquor Tax (Dollars per Gallon): N/A
Wine Tax (Dollars per Gallon): $0.67
Beer Tax (Dollars per Gallon): $0.08
State Sales Tax: 0.00%

#42. North Dakota

 

Tobacco Tax (Dollars per Pack): $0.44
Liquor Tax (Dollars per Gallon): $2.50
Wine Tax (Dollars per Gallon): $0.50
Beer Tax (Dollars per Gallon): $0.16
State Sales Tax: 5.00%

#41. Minnesota

 

Tobacco Tax (Dollars per Pack): $0.03
Liquor Tax (Dollars per Gallon): $5.03
Wine Tax (Dollars per Gallon): $0.30
Beer Tax (Dollars per Gallon): $0.15
State Sales Tax: 6.88%

#40. Louisiana

 

Tobacco Tax (Dollars per Pack): $0.36
Liquor Tax (Dollars per Gallon): $2.50
Wine Tax (Dollars per Gallon): $0.11
Beer Tax (Dollars per Gallon): $0.32
State Sales Tax: 4.00%

#39. Kansas

 

Tobacco Tax (Dollars per Pack): $0.79
Liquor Tax (Dollars per Gallon): $2.50
Wine Tax (Dollars per Gallon): $0.30
Beer Tax (Dollars per Gallon): $0.18
State Sales Tax: 6.50%

#38. West Virginia

 

Tobacco Tax (Dollars per Pack): $0.55
Liquor Tax (Dollars per Gallon): N/A
Wine Tax (Dollars per Gallon): $1.00
Beer Tax (Dollars per Gallon): $0.18
State Sales Tax: 6.00%

#37. Indiana

 

Tobacco Tax (Dollars per Pack): $1.00
Liquor Tax (Dollars per Gallon): $2.68
Wine Tax (Dollars per Gallon): $0.47
Beer Tax (Dollars per Gallon): $0.12
State Sales Tax: 7.00%

#36. California

 

Tobacco Tax (Dollars per Pack): $0.87
Liquor Tax (Dollars per Gallon): $3.30
Wine Tax (Dollars per Gallon): $0.20
Beer Tax (Dollars per Gallon): $0.20
State Sales Tax: 7.50%

#35. New Hampshire

 

Tobacco Tax (Dollars per Pack): $1.78
Liquor Tax (Dollars per Gallon): N/A
Wine Tax (Dollars per Gallon): N/A
Beer Tax (Dollars per Gallon): $0.30
State Sales Tax: 0.00%

#34. Mississippi

 

Tobacco Tax (Dollars per Pack): $0.68
Liquor Tax (Dollars per Gallon): N/A
Wine Tax (Dollars per Gallon): $0.35
Beer Tax (Dollars per Gallon): $0.43
State Sales Tax: 7.00%

#33. Texas

 

Tobacco Tax (Dollars per Pack): $1.41
Liquor Tax (Dollars per Gallon): $2.40
Wine Tax (Dollars per Gallon): $0.20
Beer Tax (Dollars per Gallon): $0.20
State Sales Tax: 6.25%

#32. Maryland

 

Tobacco Tax (Dollars per Pack): $2.00
Liquor Tax (Dollars per Gallon): $1.50
Wine Tax (Dollars per Gallon): $0.40
Beer Tax (Dollars per Gallon): $0.09
State Sales Tax: 6.00%

#31. Utah

 

Tobacco Tax (Dollars per Pack): $1.70
Liquor Tax (Dollars per Gallon): N/A
Wine Tax (Dollars per Gallon): N/A
Beer Tax (Dollars per Gallon): $0.41
State Sales Tax: 4.70%

#30. Michigan

 

Tobacco Tax (Dollars per Pack): $2.00
Liquor Tax (Dollars per Gallon): N/A
Wine Tax (Dollars per Gallon): $0.51
Beer Tax (Dollars per Gallon): $0.20
State Sales Tax: 6.00%

#29. Nevada

 

Tobacco Tax (Dollars per Pack): $0.80
Liquor Tax (Dollars per Gallon): $3.60
Wine Tax (Dollars per Gallon): $0.70
Beer Tax (Dollars per Gallon): $0.16
State Sales Tax: 6.85%

#28. Montana

 

Tobacco Tax (Dollars per Pack): $1.70
Liquor Tax (Dollars per Gallon): N/A
Wine Tax (Dollars per Gallon): $1.06
Beer Tax (Dollars per Gallon): $0.14
State Sales Tax: 0.00%

#27. Virginia

 

Tobacco Tax (Dollars per Pack): $0.30
Liquor Tax (Dollars per Gallon): N/A
Wine Tax (Dollars per Gallon): $1.51
Beer Tax (Dollars per Gallon): $0.26
State Sales Tax: 4.30%

#26. Wisconsin

 

Tobacco Tax (Dollars per Pack): $2.52
Liquor Tax (Dollars per Gallon): $3.25
Wine Tax (Dollars per Gallon): $0.25
Beer Tax (Dollars per Gallon): $0.06
State Sales Tax: 5.00%

#25. Arkansas

 

Tobacco Tax (Dollars per Pack): $1.15
Liquor Tax (Dollars per Gallon): $2.50
Wine Tax (Dollars per Gallon): $0.75
Beer Tax (Dollars per Gallon): $0.23
State Sales Tax: 6.50%

#24. Maine

 

Tobacco Tax (Dollars per Pack): $2.00
Liquor Tax (Dollars per Gallon): N/A
Wine Tax (Dollars per Gallon): $0.60
Beer Tax (Dollars per Gallon): $0.35
State Sales Tax: 5.50%

#23. Vermont

 

Tobacco Tax (Dollars per Pack): $2.75
Liquor Tax (Dollars per Gallon): N/A
Wine Tax (Dollars per Gallon): $0.55
Beer Tax (Dollars per Gallon): $0.27
State Sales Tax: 6.00%

#22. Nebraska

 

Tobacco Tax (Dollars per Pack): $0.64
Liquor Tax (Dollars per Gallon): $3.75
Wine Tax (Dollars per Gallon): $0.95
Beer Tax (Dollars per Gallon): $0.31
State Sales Tax: 5.50%

#21. Arizona

 

Tobacco Tax (Dollars per Pack): $2.00
Liquor Tax (Dollars per Gallon): $3.00
Wine Tax (Dollars per Gallon): $0.84
Beer Tax (Dollars per Gallon): $0.16
State Sales Tax: 5.60%

#20. Delaware

 

Tobacco Tax (Dollars per Pack): $1.60
Liquor Tax (Dollars per Gallon): $3.75
Wine Tax (Dollars per Gallon): $0.97
Beer Tax (Dollars per Gallon): $0.16
State Sales Tax: 0.00%

#19. Iowa

 

Tobacco Tax (Dollars per Pack): $1.36
Liquor Tax (Dollars per Gallon): N/A
Wine Tax (Dollars per Gallon): $1.75
Beer Tax (Dollars per Gallon): $0.19
State Sales Tax: 6.00%

#18. North Carolina

 

Tobacco Tax (Dollars per Pack): $0.45
Liquor Tax (Dollars per Gallon): N/A
Wine Tax (Dollars per Gallon): $1.00
Beer Tax (Dollars per Gallon): $0.62
State Sales Tax: 4.75%

#17. South Dakota

 

Tobacco Tax (Dollars per Pack): $1.53
Liquor Tax (Dollars per Gallon): $3.93
Wine Tax (Dollars per Gallon): $0.93
Beer Tax (Dollars per Gallon): $0.27
State Sales Tax: 4.00%

#16. Georgia

 

Tobacco Tax (Dollars per Pack): $0.37
Liquor Tax (Dollars per Gallon): $3.79
Wine Tax (Dollars per Gallon): $1.51
Beer Tax (Dollars per Gallon): $0.32
State Sales Tax: 4.00%

#15. Alabama

 

Tobacco Tax (Dollars per Pack): $0.43
Liquor Tax (Dollars per Gallon): N/A
Wine Tax (Dollars per Gallon): $1.70
Beer Tax (Dollars per Gallon): $0.53
State Sales Tax: 4.00%

#14. Oklahoma

 

Tobacco Tax (Dollars per Pack): $1.03
Liquor Tax (Dollars per Gallon): $5.56
Wine Tax (Dollars per Gallon): $0.72
Beer Tax (Dollars per Gallon): $0.40
State Sales Tax: 4.50%

#13. Massachusetts

 

Tobacco Tax (Dollars per Pack): $3.51
Liquor Tax (Dollars per Gallon): $4.05
Wine Tax (Dollars per Gallon): $0.55
Beer Tax (Dollars per Gallon): $0.11
State Sales Tax: 6.25%

#12. New Jersey

 

Tobacco Tax (Dollars per Pack): $2.70
Liquor Tax (Dollars per Gallon): $5.50
Wine Tax (Dollars per Gallon): $0.88
Beer Tax (Dollars per Gallon): $0.12
State Sales Tax: 7.00%

#11. South Carolina

 

Tobacco Tax (Dollars per Pack): $0.57
Liquor Tax (Dollars per Gallon): $2.72
Wine Tax (Dollars per Gallon): $0.90
Beer Tax (Dollars per Gallon): $0.77
State Sales Tax: 6.00%

#10. Connecticut

 

Tobacco Tax (Dollars per Pack): $3.40
Liquor Tax (Dollars per Gallon): $5.40
Wine Tax (Dollars per Gallon): $0.72
Beer Tax (Dollars per Gallon): $0.24
State Sales Tax: 6.35%

#9. New York

 

Tobacco Tax (Dollars per Pack): $4.35
Liquor Tax (Dollars per Gallon): $6.44
Wine Tax (Dollars per Gallon): $0.30
Beer Tax (Dollars per Gallon): $0.14
State Sales Tax: 4.00%

#8. Rhode Island

 

Tobacco Tax (Dollars per Pack): $3.50
Liquor Tax (Dollars per Gallon): $5.40
Wine Tax (Dollars per Gallon): $1.40
Beer Tax (Dollars per Gallon): $0.11
State Sales Tax: 7.00%

#7. Illinois

 

Tobacco Tax (Dollars per Pack): $1.98
Liquor Tax (Dollars per Gallon): $8.55
Wine Tax (Dollars per Gallon): $1.39
Beer Tax (Dollars per Gallon): $0.23
State Sales Tax: 6.25%

#6. New Mexico

 

Tobacco Tax (Dollars per Pack): $1.66
Liquor Tax (Dollars per Gallon): $6.06
Wine Tax (Dollars per Gallon): $1.70
Beer Tax (Dollars per Gallon): $0.41
State Sales Tax: 5.13%

#5. Florida

 

Tobacco Tax (Dollars per Pack): $1.34
Liquor Tax (Dollars per Gallon): $6.50
Wine Tax (Dollars per Gallon): $2.25
Beer Tax (Dollars per Gallon): $0.48
State Sales Tax: 6.00%

#4. Tennessee

 

Tobacco Tax (Dollars per Pack): $0.62
Liquor Tax (Dollars per Gallon): $4.40
Wine Tax (Dollars per Gallon): $1.21
Beer Tax (Dollars per Gallon): $1.15
State Sales Tax: 7.00%

#3. Washington

 

Tobacco Tax (Dollars per Pack): $3.03
Liquor Tax (Dollars per Gallon): $14.24
Wine Tax (Dollars per Gallon): $0.87
Beer Tax (Dollars per Gallon): $0.26
State Sales Tax: 6.50%

#2. Hawaii

 

Tobacco Tax (Dollars per Pack): $3.20
Liquor Tax (Dollars per Gallon): $5.98
Wine Tax (Dollars per Gallon): $1.38
Beer Tax (Dollars per Gallon): $0.93
State Sales Tax: 4.00%

#1. Alaska

 

Tobacco Tax (Dollars per Pack): $2.00
Liquor Tax (Dollars per Gallon): $12.80
Wine Tax (Dollars per Gallon): $2.50
Beer Tax (Dollars per Gallon): $1.07
State Sales Tax: 0.00%

Overview of Sin Taxes in the United States

 

Compare Tax Preparers on Credio

Content distributed by Tribune Media Wire via Graphiq