Excise Tax Calculator
An excise tax is a fixed amount levied per unit of a specific good, such as per gallon of fuel, per pack of cigarettes, or per barrel of beer. Unlike a percentage sales tax, the excise rate does not change with the price of the good. Total excise tax equals the per-unit rate multiplied by the number of units. Enter the per-unit excise rate and the quantity to calculate the total excise tax owed.
Excise tax formula
Total Excise Tax = Per-Unit Rate x Quantity
The per-unit rate is set by statute and does not vary with the market price. For example, the federal excise tax on gasoline is $0.184 per gallon. For 1,000 gallons, the excise tax is $184.00. Add any applicable state excise tax at its own per-gallon rate for the combined total.
Common US excise tax rates
- Federal gasoline: $0.184 per gallon (IRS)
- Federal diesel: $0.244 per gallon (IRS)
- Federal cigarettes: $1.0066 per pack of 20 (IRS)
- Federal beer: $3.50-$18 per barrel depending on volume (IRS)
- Federal wine: $1.07-$3.40 per wine gallon depending on alcohol content (IRS)
State excise rates are set separately and are added on top of the federal rates. Verify current rates in IRS Publication 510 and your state's Department of Revenue.
Excise tax FAQ
What is an excise tax?
An excise tax is a per-unit or per-volume tax levied on specific goods, typically at the point of production or sale. Unlike a sales tax (which is a percentage of price), an excise tax is a fixed amount per unit regardless of price. Common examples include federal and state taxes on gasoline, alcohol, and tobacco.
How is excise tax different from sales tax?
Sales tax is ad valorem (a percentage of the sale price). Excise tax is specific (a fixed dollar amount per unit of measure, such as per gallon, per pack, or per liter). Excise taxes are typically included in the product's price and paid by the producer, not collected separately at the cash register.
What products are subject to federal excise tax?
The IRS levies federal excise taxes on fuels, alcohol, tobacco, firearms, air travel, heavy vehicles, and certain other goods. Federal excise tax rates are published in IRS Publication 510. States impose their own excise taxes in addition to the federal rate.
Who pays excise tax?
Excise taxes are typically imposed on the manufacturer, importer, or retailer and are built into the product's price. The economic burden usually passes to the consumer through higher prices, even though the producer remits the tax to the government.
Are excise taxes deductible?
Excise taxes paid in the course of a business are generally deductible as an ordinary business expense on federal income tax returns. Excise taxes on personal purchases (such as fuel taxes included in the pump price) are not separately deductible by individuals.
Official sources
- IRS Publication 510 (Excise Taxes): IRS Pub 510.
- IRS Form 720 (Quarterly Federal Excise Tax Return): About Form 720.
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.