Virginia residents pay $19.89 per gallon in taxes on stiff drinks, third highest in U.S.

Virginia distilled spirits drinkers pay the equivalent of $19.89 per gallon in state excise taxes on their drinks, according to a new analysis from the Tax Foundation based on January 2021 data.

The distilled spirits tax in Virginia was third highest among the 50 states, the Tax Foundation study found. Distilled spirits, such as gin and vodka, typically have an alcohol content of 40 percent or more.

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.

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2021 Distilled Spirits Excise Taxes by State

Rank	State	Excise Tax per Gallon
1	Washington	$35.31
2	Oregon	$21.95
3	Virginia	$19.89
4	Alabama	$19.11
5	Utah	$15.92
6	North Carolina	$14.58
7	Iowa	$13.03
8	Alaska	$12.80
9	Maine	$11.96
10	Michigan	$11.95
11	Idaho	$10.91
12	Montana	$9.83
13	Ohio	$9.83
14	Minnesota	$8.61
15	Illinois	$8.55
16	Kentucky	$8.41
17	Arkansas	$8.33
18	Mississippi	$8.11
19	Vermont	$7.68
20	West Virginia	$7.62
21	Pennsylvania	$7.41
22	Florida	$6.50
23	New York	$6.44
24	New Mexico	$6.06
25	Hawaii	$5.98
26	Connecticut	$5.94
27	Oklahoma	$5.56
28	New Jersey	$5.50
29	South Carolina	$5.42
30	Rhode Island	$5.40
31	North Dakota	$5.12
32	Maryland	$5.03
33	South Dakota	$4.73
34	Delaware	$4.50
35	Tennessee	$4.46
36	Massachusetts	$4.05
37	Georgia	$3.79
38	Nebraska	$3.75
39	Nevada	$3.60
40	California	$3.30
41	Wisconsin	$3.25
42	Louisiana	$3.03
43	Arizona	$3.00
44	Indiana	$2.68
45	Kansas	$2.50
46	Texas	$2.40
47	Colorado	$2.28
48	Missouri	$2.00
49 (tie)	New Hampshire	$0.00
49 (tie)	Wyoming	$0.00