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Tax collectors toast your choice of alcoholic beverages

November 29, 2013

Did you finish off that bottle of Pinot Grigio with yesterday's turkey feast? Are you about to open another one to go with leftovers?

Or maybe your prefer beer. Or you really, really need something a little stronger to deal with your crazy uncle's incessant political rants.

Whatever potent potable you do select, a part of the price will go to tax collectors.

Tax percentages on a bottle of distilled spirits_Distilled Spirits CouncilIf you opt for the hard stuff, a substantial portion of what you pay covers various taxes, according to the Distilled Spirits Council of the United States (DSCUS).

The national trade association for producers and marketers of distilled spirits says that in 2012, the retail price of a typical 750 milliliter bottle of 80 proof spirits was $14.42. DSCUS calculated that more than half that cost — $7.83 or 54 percent — went to taxes.

After handing over a portion to federal, states and indirect taxes (e.g., personal and corporate income, payroll and property taxes), the private share take of $6.59 cents on that bottle is split by distillers, importers, wholesalers and retailers.

Best, worst tax places to buy booze: Of course, the tax amounts will vary depending on where you live.

If you're buying your booze in Wyoming, then be sure to give thanks for the negligible taxes that state assesses alcoholic beverages.

In fact, a recent study by Nerdwallet named Wyoming as the best state from a tax perspective to buy booze.

All alcohol sales are controlled through the state, notes the finance site, resulting in rock-bottom tax rates on beer, wine and liquor. Wyoming collects 2 cents per beer and has a negative effective tax rate on spirits due to significant pricing controls.

Joining the Cowboy State in Nerdwallet's list of the top five states with the lowest alcohol taxes are Missouri, New Hampshire, Colorado and Vermont.

At the other end of the adult beverages tax scale is Washington.

The Evergreen State, says Nerdwallet, has hefty taxes on spirits. You'll pay a 3.4 cent tax on a glass of wine and 7.1 cents extra for each stein of beer. If it's hard liquor you want, be ready to hand over 41.3 cents in tax for each cocktail you enjoy while in Washington.

Joining Washington on the finance site's list of states with highest taxes on alcohol are Alabama, Alaska, Oregon and Virginia.

Taxes aren't likely to stop any of from buying a bottle of wine, vodka or a six pack of our favorite microbrew.

But just know when you do, tax collectors will be joining you in saying "cheers!"

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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