An excise tax is a U.S. tax on goods such as alcohol and tobacco that is collected from producers or sellers.
Excise taxes apply to particular products, services, or activities rather than to most purchases across an entire economy. Federal examples include taxes connected with alcoholic beverages, tobacco products, motor fuels, firearms, and certain transportation services. States and local governments impose many additional excise taxes.
The tax may be calculated per unit, such as a fixed amount per gallon, or as a percentage of value. Although the legal liability may fall on a manufacturer, wholesaler, or retailer, some of the cost can be reflected in the final price paid by consumers.
Excise taxes can raise revenue and can also pursue policy goals. Taxes on tobacco and alcohol, for example, are often defended as a way to account for health or social costs. They are distinct from broad sales taxes applied to many categories of retail purchases.