Washington alcohol tax rates are among the steepest in the country, with spirits carrying the heaviest load: a 20.5 percent spirits sales tax plus a $3.7708-per-liter volume tax at retail. Wine and beer are taxed by volume through excise taxes that are folded into the shelf price before the general retail sales tax is applied at the register. A $30 bottle of vodka ends up costing close to $39 once the state’s spirits taxes are added.
Spirits: Two Taxes Stacked
Liquor sold in the original package is subject to two state taxes and is exempt from the general retail sales tax. RCW 82.08.150 states that the retail sales tax under RCW 82.08.020 does not apply to spirits sold in the original package; the spirits-specific taxes take its place.1Washington State Legislature. RCW 82.08.150 – Tax on Certain Sales of Intoxicating Liquors
The spirits sales tax is a percentage of the selling price:
- Retail consumers pay 20.5 percent, which combines a 15 percent base, a 2.1 percent surtax, and a 3.4 percent additional rate.2Washington Department of Revenue. Liquor Sales Tax
- On-premises retailers, meaning bars and restaurants buying for resale, pay 13.7 percent.3Washington Department of Revenue. Spirits (Hard Liquor) Sales Tax
On top of that, the spirits liter tax adds a flat charge per liter of container volume: $3.7708 per liter for retail consumers and $2.4408 per liter for on-premises retailers.4Washington Department of Revenue. Spirits Sales
What a 750 ml Bottle Actually Costs
Take a bottle priced at $30 before taxes. The 20.5 percent spirits sales tax adds $6.15. The liter tax on 0.75 liters adds another $2.83. Together, those two taxes come to $8.98, bringing the shelf-plus-tax total to $38.98.
Wine and Cider Excise Tax
Wine is taxed by volume, with the rate set by what kind of wine it is. Distributors and wineries pay the excise tax before the bottle reaches the shelf, so it doesn’t appear as a separate line at checkout.5Washington State Department of Revenue. Wine Tax
- Table wine: $0.2292 per liter. This covers still wines at 14 percent alcohol or less, plus any non-fortified wine and sparkling wine.
- Fortified wine: $0.4536 per liter. This applies to wines above 14 percent ABV that have had spirits, brandy, or alcohol added.
- Cider: $0.0814 per liter. Washington defines cider as wine made from apples or pears with an alcohol content between 0.5 and 8.5 percent ABV, and flavored, sparkling, and carbonated ciders all qualify for this lower rate.6Washington State Legislature. RCW 66.24.210 – Imposition of Taxes on Sales of Wine and Cider
Because the excise tax is baked into the shelf price, Washington’s general retail sales tax is then calculated on that excise-inclusive amount at the register.
Beer Excise Tax
Washington taxes beer at $8.08 per 31-gallon barrel, which works out to about 26 cents per gallon or roughly two to three cents per 12-ounce can. The rate combines a $1.30 base, an additional $2.00, and a further $4.78 per barrel.7Washington Department of Revenue. Beer Tax – RCW 66.24.290
Small-Brewery Rate
Qualifying small breweries are exempt from the $4.78-per-barrel additional tax on the first 60,000 barrels sold in Washington each fiscal year. A separate additional tax of $1.482 per barrel still applies to those first 60,000 barrels, so the effective small-brewery rate is about $4.78 per barrel rather than $8.08. To qualify, the beer must be produced in the United States by a brewery that meets the federal small brewer definition under 26 U.S.C. § 5051.8Legal Information Institute. Washington Administrative Code 314-19-035 – Reduced Tax Rate for Beer
Retail Sales Tax on Beer and Wine
Beer and wine are ordinary taxable goods under Washington’s retail sales tax. The state base rate is 6.5 percent, and local city, county, and transit add-ons push the combined rate higher; in many urban areas the total reaches 10 percent or more. That sales tax is applied to the excise-inclusive shelf price, so the tax at the register is calculated on a price that already contains a tax.
A $15 six-pack in an area with a 10.25 percent combined sales tax picks up another $1.54 at checkout, for a total of $16.54.
Spirits are not subject to this general sales tax. The spirits sales tax and liter tax are the only state-level taxes on liquor sold in the original package.1Washington State Legislature. RCW 82.08.150 – Tax on Certain Sales of Intoxicating Liquors
Federal Excise Taxes
The federal government imposes its own excise taxes on every alcoholic beverage sold in the United States. Producers or importers pay them, and the cost is built into the wholesale price before the product reaches Washington shelves. Rates apply uniformly across states.
Distilled spirits are taxed on “proof gallons” (one gallon at 50 percent alcohol) on a tiered schedule made permanent in 2020: $2.70 per proof gallon on the first 100,000, $13.34 on the next tier up to 22.23 million, and $13.50 above that.9TTB: Alcohol and Tobacco Tax and Trade Bureau. Tax and Fee Rates
Wine is taxed per wine gallon, with rates that climb with alcohol content and carbonation:
- Still wine, 16% ABV or under: $1.07 per wine gallon
- Still wine, over 16% to 21% ABV: $1.57 per wine gallon
- Still wine, over 21% to 24% ABV: $3.15 per wine gallon
- Sparkling wine (naturally carbonated): $3.40 per wine gallon
- Artificially carbonated wine: $3.30 per wine gallon
Small wine producers can claim tax credits on their first 750,000 wine gallons, which reduces the effective rate substantially.9TTB: Alcohol and Tobacco Tax and Trade Bureau. Tax and Fee Rates
The standard federal beer tax is $18.00 per barrel. Domestic brewers producing two million barrels or fewer per year pay $3.50 on their first 60,000 barrels and $16.00 beyond that. Larger brewers producing over two million barrels pay $16.00 per barrel on their first six million.9TTB: Alcohol and Tobacco Tax and Trade Bureau. Tax and Fee Rates
How Washington Compares Nationally
Washington’s spirits taxes are the highest of any state. Converting the percentage spirits sales tax, the liter tax, and the license fees into a per-gallon equivalent puts the effective rate at roughly $36.98 per gallon of distilled spirits.4Washington Department of Revenue. Spirits Sales
Wine and beer are more moderate. The $0.2292-per-liter table wine rate and the $8.08-per-barrel beer rate sit closer to the national middle, though layering retail sales tax on top of the excise-inclusive shelf price still pushes final consumer costs above most neighboring states.