Iowa residents pay $13.03 per gallon in taxes on distilled spirits, among highest in U.S.

Iowa distilled spirits drinkers pay the equivalent of $13.03 per gallon in state excise taxes on their stiff drinks, according to a new analysis from the Tax Foundation based on January 2020 data.

The distilled spirits tax in Iowa was seventh highest among the 50 states, the Tax Foundation study found.

How distilled spirits are taxed varies among the states, with some states basing levies on volume and others imposing per-bottle fees or retailer license fees. States can also impose taxes based on alcohol content and the location of purchase, the analysis reports.

Two states – New Hampshire and Wyoming – have government-run stores that sell distilled spirits at prices that are comparable to buying the products without taxes, according to the analysis.

2020 Distilled Spirits Excise Taxes by State

RankStateDistilled Spirits Tax (Dollars per Gallon)1Washington$33.222Oregon$21.953Virginia$19.894Alabama$19.115Utah$15.926North Carolina$14.587Iowa$13.038Alaska$12.809Maine$11.9610Michigan$11.9511Idaho$10.9112Ohio$9.8313Montana$9.7514Minnesota$9.0115Illinois$8.5516Arkansas$8.4117Kentucky$8.3318Mississippi$8.1119Vermont$7.6820West Virginia$7.6221Pennsylvania$7.2122Florida$6.5023New York$6.4424New Mexico$6.0625Hawaii$5.9826Oklahoma$5.5627New Jersey$5.5028South Carolina$5.4229 (tie)Connecticut$5.4029 (tie)Rhode Island$5.4031North Dakota$5.1232Maryland$5.0333South Dakota$4.6734Delaware$4.5035Tennessee$4.4636Massachusetts$4.0537Georgia$3.7938Nebraska$3.7539Nevada$3.6040California$3.3041Wisconsin$3.2542Louisiana$3.0343Arizona$3.0044Indiana$2.6845Kansas$2.5046Texas$2.4047Colorado$2.2848Missouri$2.0049 (tie)New HampshireN/A49 (tie)WyomingN/A

Source: Tax Foundation

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