Alcohol tax in Texas works in layers. On-premise sellers owe a 6.7 percent mixed beverage gross receipts tax and an 8.25 percent mixed beverage sales tax, both filed monthly with the Texas Comptroller. Underneath those, the state charges volume-based excise taxes on distilled spirits, wine, and beer at the wholesale level, so the price of a bottle already carries tax before any bar marks it up. Individuals bringing alcohol in for personal use face their own quantity limits and a small excise charge.
The 6.7% Mixed Beverage Gross Receipts Tax
Any business holding a mixed beverage permit owes 6.7 percent on the total it takes in from alcoholic drinks served on the premises, along with the ice and nonalcoholic mixers sold with them. It applies to gross receipts, so every dollar of beverage revenue counts toward the taxable amount. The law allows the permittee to add the tax to the sales price and collect it from the customer.1State of Texas. Texas Tax Code Chapter 183 – Mixed Beverage Taxes – Section 183.023
Complimentary drinks have to be reported on the gross receipts return for informational purposes, and the taxable ingredients used to make them get reported on the business’s limited sales and use tax return as a taxable purchase.2Texas Comptroller of Public Accounts. Mixed Beverage Taxes Frequently Asked Questions There is no exemption from the gross receipts tax for any type of entity, including nonprofits and government organizations acting as permittees.3Texas Comptroller of Public Accounts. Mixed Beverage Sales Tax
The 8.25% Mixed Beverage Sales Tax
Separately, every mixed beverage sold for on-premise consumption carries an 8.25 percent sales tax on the sales price.4State of Texas. Texas Tax Code 183.041 – Tax Imposed on Sales of Mixed Beverages and Related Items This one appears as a line on the customer’s bill. It is distinct from the state’s general 6.25 percent sales tax and is not reduced by local sales tax caps.
A handful of purchasers are exempt. Federal government agencies and departments, including military branches, do not owe the 8.25 percent on their purchases. Texas state and local government entities, public school districts, and state-funded universities also qualify. Foreign diplomatic personnel with a valid tax exemption card from the U.S. Department of State are exempt unless the card specifically excludes alcohol.3Texas Comptroller of Public Accounts. Mixed Beverage Sales Tax Personal purchases by government employees, even on official travel, do not qualify. Most nonprofits are not exempt either, because alcohol purchases rarely relate to a nonprofit’s exempt purpose.
Wholesale Excise Taxes on Spirits, Wine, and Beer
Before anything reaches a retailer, the state collects a volume-based excise tax on the first sale within or into Texas. Wholesalers and distributors pay it, and the cost is baked into what retailers and bars pay for inventory.
Distilled spirits are taxed at $2.40 per gallon, with a minimum of five cents per package for miniature bottles of two ounces or less.5State of Texas. Texas Alcoholic Beverage Code 201.03 – Tax on Distilled Spirits The rate is based on volume alone, so a gallon of bottom-shelf vodka and a gallon of premium single malt owe the same tax.
Wine is taxed by alcohol content and carbonation:6State of Texas. Texas Alcoholic Beverage Code 201.04 – Tax on Vinous Liquor
- 14 percent alcohol or less: $0.204 per gallon
- Over 14 percent alcohol: $0.408 per gallon
- Sparkling or carbonated wine: $0.516 per gallon
Beer is taxed at $6.00 per barrel on the first sale.7Justia Law. Texas Alcoholic Beverage Code Chapter 203 – Tax on Beer A standard barrel holds 31 gallons, which works out to roughly 19 cents per gallon. Smaller kegs and cases are prorated proportionally.
Bringing Alcohol Into Texas for Personal Use
If you’re an individual, not a business, you can bring alcohol into Texas from another state or country without a permit, but only within set limits: one gallon of distilled spirits, three gallons of wine, and 24 twelve-ounce bottles of beer (or the equivalent volume) per trip.8State of Texas. Texas Alcoholic Beverage Code 107.07 – Importation for Personal Use You have to physically accompany the alcohol into the state, and you can only use this allowance once every 30 days. You still owe state excise tax on what you bring in, plus a $3 administrative fee, and the required tax stamps have to be affixed.
Where Sales Are Allowed
Not every part of Texas allows alcohol sales. Counties, cities, and justice-of-the-peace precincts can vote to restrict or prohibit sales of specific beverage types through local option elections.9Office of the Texas Secretary of State. Local Option Liquor Elections As of early 2025, Texas has 60 completely wet counties and three completely dry counties, with the rest somewhere in between.10Texas Alcoholic Beverage Commission. TABC Publishes Interactive Wet/Dry Map In a dry or partially wet jurisdiction, certain permits simply aren’t available regardless of the paperwork, so the TABC’s interactive wet/dry map is worth checking before signing a lease.
Filing Deadlines and Forms
Mixed beverage tax reports and payments are due by the 20th of the month following each reporting period. A bar reporting March activity, for example, must file and pay by April 20.11Texas Comptroller of Public Accounts. Mixed Beverage Gross Receipts Tax You must file even if you had no sales for the month.
Two separate forms cover the two mixed beverage taxes. Form 67-100, the Texas Mixed Beverage Gross Receipts Tax Report, covers the 6.7 percent tax. Form 67-103, the Texas Mixed Beverage Sales Tax Report, covers the 8.25 percent consumer-facing tax.13Texas Comptroller of Public Accounts. Texas Mixed Beverage Tax Forms
Whether you can file on paper depends on how much you paid the previous state fiscal year, which runs September 1 through August 31. If your combined mixed beverage tax payments reached $50,000 or more, the Comptroller requires you to file through Webfile, the state’s online portal.12Texas Comptroller of Public Accounts. File and Pay Businesses below that threshold can use Webfile voluntarily or mail paper returns. Payment options include electronic funds transfer, credit card, or check.
Late Penalties and Interest
Missing the monthly deadline is expensive. The Comptroller assesses a $50 flat penalty on any late report, even if you owe no tax for that period.14Texas Comptroller of Public Accounts. Mixed Beverage Taxes – What You Can Expect If you owe tax and pay one to 30 days late, the penalty is 5 percent of the amount due. After 30 days, it doubles to 10 percent.
Interest starts accruing on the 61st day after the original due date. For the 2026 calendar year, the annual interest rate on delinquent tax payments is 7.75 percent.15Texas Comptroller of Public Accounts. Interest Owed and Earned That rate resets each January based on the prime rate plus one percent.
Record Retention
Permit holders must keep all records related to alcoholic beverage sales, invoices, and tax filings for at least two years, and those records have to be available for TABC inspection during normal business hours. That includes purchase invoices, sales receipts, inventory logs, and copies of every tax report submitted. Keeping records for four years is the safer practice because the Comptroller can audit that far back. Save the confirmation number from each Webfile submission alongside your monthly records as proof of timely payment.