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Tax Rates

Tax Rates by Commodity

Beer | Wine | Distilled Spirits  | Tobacco Products | Cigarette Papers/Tubes | Firearms/Ammunition

 

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Note – This is for informational purposes only - For beer, wine, and distilled spirits, some reduced tax rates and tax credits are only available if you meet criteria related to production, processing, or foreign assignments. Reduced tax rates and tax credits may also be limited if you are part of a controlled group or a Single Taxpayer arrangement. See the CBMA page for more information. For distilled spirits, your effective tax rate may be lower based on tax credits for eligible wine or eligible flavor content. See TTB Industry Circular 2018-4.

 

ALCOHOL – Tax Rates for Calendar Years 2018 to Present (view Historic Tax Rates)

BEER – Reduced Tax Rates on Domestic Removals or Imports (2018 to Present)

 

Barrels per Calendar Year

Beer produced and removed by a domestic brewer who produces 2,000,000 barrels or less per calendar year

First 60,000
(Rate per Barrel)

Over 60,000 up to 2,000,000
(Rate per Barrel)

$3.50

$16.00

Beer removed by:

  • A domestic brewer who produces over 2,000,000 barrels per calendar year and who produced the beer

  • An electing U.S. importer with a reduced rate appropriately assigned to them by a foreign brewer

First 6,000,000
(Rate per Barrel)

$16.00

BEER – General Tax Rate on Domestic Removals or Imports

Beer removed by:

  • A domestic brewer who did not produce the beer

  • A U.S. importer who is not assigned a reduced rate by a foreign brewer

  • A brewer who exhausted its own reduced rate entitlement for the calendar year or an importer who has already taken advantage of assigned reduced rates

All Barrels
(Rate per Barrel)

$18.00

 

 

WINE – Tax Rates and Tax Credits on Domestic Removals or Imports (2018 to Present)

Tax Class 

Tax Rate per Wine Gallon

Tax Credits per Calendar Year
(and Effective Tax Rates per Wine Gallon After Applicable Credits)

  • Domestic wine producers are entitled to tax credits on wine they produce and may transfer their tax credits to other wineries or to bonded wine cellars that receive their wine in bond
  • Electing U.S. importers may take advantage of tax credits appropriately assigned to them by a foreign winery

First 30,000
Wine Gallons

Over 30,000 up to 130,000
Wine Gallons

Over 130,000 up to 750,000
Wine Gallons

Still Wine

16% and under alcohol by volume
(0.392g CO2/100mL or less)

$1.07

$1 credit
($0.07)

90¢ credit
($0.17)

53.5¢ credit
($0.535)

Over 16 - 21% alcohol by volume
(0.392g CO2/100mL or less

$1.57

$1 credit
($0.57)

90¢ credit
($0.67)

53.5¢ credit
($1.035)

Over 21 - 24% alcohol by volume
(0.392g CO2/100mL or less)

$3.15

$1 credit
($2.15)

90¢ credit
($2.25)

53.5¢ credit
($2.615)

Mead
No more than 0.64g CO2/100mL; derived solely from honey and water; containing no fruit product or fruit flavoring; and containing less than (not equal to) 8.5% alcohol by volume 

$1.07

$1 credit
($0.07)

90¢ credit
($0.17)

53.5¢ credit
($0.535)

Low alcohol by volume wine
No more than 0.64g CO2/100mL; derived primarily from grapes or from grape juice concentrate and water; containing no fruit product or fruit flavoring other than grape; and containing less than (not equal to) 8.5% alcohol by volume 

$1.07

$1 credit
($0.07)

90¢ credit
($0.17)

53.5¢ credit
($0.535)

Artificially Carbonated Wine

Over 0.392g CO2/100mL - injected or otherwise added

$3.30

$1 credit
($2.30)

90¢ credit
($2.40)

53.5¢ credit
($2.765)

Sparkling Wine 

Over 0.392g CO2/100mL - naturally occurring

$3.40

$1 credit
($2.40)

90¢ credit
($2.50)

53.5¢ credit
($2.865)

Hard Cider 

No more than 0.64g CO2/100mL; derived primarily from apples/pears or apple/pear juice concentrate and water; containing no other fruit product or fruit flavoring other than apple/pear; and containing at least 0.5% and less than (not equal to) 8.5% alcohol by volume

$0.226

6.2¢ credit
($0.164)

5.6¢ credit
($0.17)

3.3¢ credit
($0.193)

 

DISTILLED SPIRITS – Reduced Tax Rates on Domestic Removals or Imports (2018 to Present)

  • Proprietors of domestic distilled spirits plants (DSPs) may take advantage of reduced rates when they remove limited quantities of distilled spirits that they distilled or processed (beginning in 2022, processors must meet minimum processing requirements)
  • Electing U.S. importers may take advantage of reduced rates appropriately assigned to them by a foreign distilled spirits operation

Proof Gallons per Calendar Year

First 100,000 Proof Gallons
(Rate per Proof Gallon)

Over 100,000 up to 22,230,000 Proof Gallons
(Rate per Proof Gallon)

$2.70

$13.34

DISTILLED SPIRITS – General Tax Rate on Domestic Removals or Imports

  • Applies to DSP proprietors who remove distilled spirits that they did not distill or process (or beginning in 2022, processed only by bottling)
  • Applies to U.S. importers who are not assigned a reduced rate by a foreign distilled spirits operation
  • Applies to DSP proprietors who exhaust their reduced rate entitlement for the calendar year and to importers who have already taken advantage of assigned reduced rates

All Proof Gallons
(Rate per Proof Gallon)

$13.50

TOBACCO – Current Tax Rates (view Historic Tax Rates)

Tobacco Products

1,000 units

Pack of 20

Small Cigarettes

$50.33

$1.01

Large Cigarettes

$105.69

$2.11

Small Cigars

$50.33

$1.01

Tobacco Products

1000 units

Each

Large Cigars

52.75% of sales price but not to
exceed $402.60 per 1,000

$.4026 maximum

Tobacco Products

1 lb.

1 Ounce Tin or Pouch

Pipe Tobacco

$2.8311

$0.1769

Chewing Tobacco

$0.5033

$0.0315

Snuff

$1.51

$0.0944

Roll-your-own Tobacco

$24.78

$1.5488

 

Cigarette Papers and Tubes

Tax

Cigarette  Paper

50 papers1

Cigarette papers up to 6½" long

$0.0315

Cigarette papers over 6½" long

Use rates above, but count each 2¾ inches, or fraction thereof, of the length of each as one cigarette paper.

Cigarette  Tubes

50 Tubes2

Cigarette tubes up to 6½" long

$0.0630

Cigarette tubes over 6½" long

Use rates above, but count each 2¾ inches, or fraction thereof, of the length of each as one cigarette tube.

1Tax rate for less than 50 papers is the same. The tax is not prorated.
2Tax rate for less than 50 tubes is the same. The tax is not prorated.

FIREARMS AND AMMUNITION – Current Tax Rates

Firearms and Ammunition

Tax

Pistols and Revolvers

10% of sale price

Other Firearms and  Ammunition

11% of sale price

 

 

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Page last reviewed: December 22, 2020
Page last updated: December 22, 2020
Maintained by: National Revenue Center, Tax Audit Division