10/15/2018

How Much Does Your State Collect in Excise Taxes?

Unlike a tax on a general base (like income or consumption), an excise tax is a tax on a specific good or activity. Excise taxes are commonly levied on cigarettes, alcoholic beverages, soda, gasoline, insurance premiums, amusement activities, and pari-mutuels (betting), among other goods and activities.

Excise taxes make up a relatively small portion of state and local tax collections—about 11 percent—but per capita collections vary widely from state to state.

Vermont has the highest state and local excise tax collections at $1,068 per capita, followed by Nevada at $945 and Hawaii at $923. At $303 per capita, Arizona collected the least in per capita state and local excise taxes, followed by Idaho ($313) and Nebraska ($322).

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