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The states with the highest ‘sin taxes’

Posted at 11:33 AM, Mar 23, 2016
and last updated 2016-03-23 11:33:00-04

smoking

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 designates 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