Washington State Excise Tax: What It Is and What It Covers

Washington State excise tax is a tax on the sale of specific goods — not a general sales tax on everything you buy. The state charges excise tax on things like gasoline, cigarettes, alcohol, and certain other products. When you buy these items in Washington, the excise tax is added to the price at the register or pump, separate from the regular sales tax.

The excise tax rate varies by product. Gasoline has one rate, cigarettes have another, and beer, wine, and spirits each have their own rates. Some excise taxes are a flat amount per unit (like a certain number of cents per gallon or per pack), while others are a percentage of the sale price. The money collected goes to specific state programs — for example, gas tax revenue funds transportation projects, and tobacco tax revenue funds health programs.

Unlike income tax, which Washington does not have, excise taxes are built into the price of the product itself. You do not file paperwork or report excise taxes on your own — the seller collects and sends it to the state.

Key Takeaways

  • Washington State excise tax applies only to specific products like gasoline, cigarettes, alcohol, and a few others — not to most everyday purchases.
  • Each product has its own tax rate: gasoline is taxed per gallon, cigarettes per pack, and alcohol varies by type and proof.
  • The excise tax is included in the final price you pay; you do not calculate or report it yourself.
  • Revenue from excise taxes funds specific state programs, such as transportation (from gas tax) and public health (from tobacco tax).

Excise Tax Rates on Gasoline and Fuel

Washington charges excise tax on gasoline, diesel, and other motor fuels. The rate is set per gallon and changes periodically based on state law. As of 2024, the rate varies depending on fuel type and whether you are in a county with additional local fuel tax. The state portion is the same statewide, but some counties add their own fuel tax on top.

The gas tax you see at the pump includes both the state excise tax and any local tax. Retailers are required to collect this tax and send it to the Department of Revenue. The revenue funds the Transportation Improvement Account and other state transportation projects.

If you buy fuel outside Washington and bring it into the state, you do not owe additional excise tax on that fuel. However, if you are a fuel distributor or retailer, different rules explore to how you report and pay the tax.

Excise Tax on Cigarettes and Tobacco Products

Washington taxes cigarettes and other tobacco products at a rate per pack or unit. Cigarettes are taxed per pack of 20 cigarettes. Cigars, chewing tobacco, snuff, and other tobacco products are taxed differently — usually as a percentage of the wholesale price or per unit, depending on the product type.

The tobacco excise tax rate has increased several times over the past decade. Retailers collect the tax at the point of sale and remit it to the Department of Revenue. Revenue from tobacco tax funds the Tobacco Prevention and Control Program, which supports smoking cessation and prevention efforts.

If you order cigarettes or tobacco from out of state and have them shipped to Washington, state law requires the seller to collect and remit the excise tax, even if the sale happens online or by mail. If the out-of-state seller does not collect it, you may be responsible for reporting and paying the tax yourself.

Excise Tax on Alcohol: Beer, Wine, and Spirits

Washington taxes beer, wine, and spirits, but the rates differ by type and alcohol content. Beer is taxed per barrel (31 gallons). Wine is taxed per gallon and the rate depends on alcohol content — still wine (under 14% alcohol) has one rate, and fortified wine (14% or higher) has a higher rate. Spirits are taxed per proof gallon, which accounts for both volume and alcohol strength.

Wholesalers and distributors collect the excise tax when they sell to retailers, and retailers include it in the price you pay. The tax is built into the shelf price, so you see the final amount at checkout. Revenue from alcohol excise tax funds alcohol and drug treatment programs, public health initiatives, and other state programs.

If you manufacture beer, wine, or spirits in Washington — even for personal use — different rules explore. Home beer and wine production is permitted under federal law in limited quantities, but Washington State excise tax rules for home producers differ from those for commercial producers.

Other Products Subject to Washington Excise Tax

Beyond gasoline, cigarettes, and alcohol, Washington charges excise tax on a smaller list of other goods. These include certain vehicles (like electric vehicles, which have a different tax structure), vapor products (e-cigarettes and similar devices), and some other specific items. The rates and rules for these products vary.

Vapor products, for example, are taxed as a percentage of the wholesale price. Electric vehicle excise tax is a one-time tax on the purchase of a new electric vehicle, set at a percentage of the sale price, though certain vehicles and buyers may be exempt under state law.

If you are unsure whether a product you buy is subject to excise tax, the Washington Department of Revenue website lists all taxable items and current rates. Retailers are responsible for knowing which products they sell are taxed and collecting the correct amount.

How Excise Tax Differs from Sales Tax

Washington has no state income tax, but it does have a state sales tax that applies to most purchases. Sales tax is a general tax on the sale of goods and services, while excise tax is a tax on specific products only. You pay sales tax on most things you buy — groceries, clothing, electronics — but you pay excise tax only on the items the state has designated.

When you buy a taxable product like gasoline or cigarettes, you pay both excise tax and sales tax. The excise tax is separate and in addition to sales tax. For example, when you buy a pack of cigarettes, the price includes the cigarette excise tax plus the local sales tax. Both are collected by the retailer and sent to the state.

The sales tax rate varies by county and city in Washington, ranging from about 8% to over 10%. The excise tax rate is set by the state and is the same statewide (though some counties add local fuel tax). Understanding the difference matters if you are comparing prices across states or trying to understand your receipt.

Who Pays Excise Tax and How It Is Collected

You pay excise tax as a consumer when you buy a taxable product. The retailer, gas station, or seller collects the tax from you at the point of sale and is responsible for sending it to the Washington Department of Revenue. You do not file a separate form or report excise tax on your personal tax return.

Businesses that sell excise-taxed products must register with the Department of Revenue and report their sales and taxes regularly — usually monthly or quarterly, depending on the product and the business size. Wholesalers and distributors also collect and report excise tax on their sales to retailers.

If a seller fails to collect excise tax, the Department of Revenue can pursue the business for back taxes and penalties. In rare cases, if you buy from an unregistered seller who does not collect tax, you may be responsible for reporting and paying it yourself, though this is uncommon for consumer purchases.

Frequently Asked Questions

Is excise tax included in the price shown on the shelf or pump?

Yes. For gasoline and most other excise-taxed products, the price displayed at the pump or on the shelf already includes the excise tax. You do not pay extra at checkout — the tax is part of the total amount shown. For alcohol, the excise tax is included in the wholesale price that retailers pay, so it is built into the shelf price you see.

Can I get a refund of excise tax I paid?

Refunds of excise tax are rare for consumer purchases. However, certain businesses — such as farmers using fuel for agricultural purposes or manufacturers using materials in production — may be able to claim refunds or exemptions under specific circumstances. You would need to contact the Washington Department of Revenue to learn whether your situation qualifies.

Do I pay Washington excise tax if I buy something online and have it shipped to Washington?

It depends on the product. For alcohol and cigarettes ordered online, the seller is required by Washington law to collect and remit excise tax, even if the seller is out of state. For other products, the rules vary. If you are unsure, check with the seller or the Department of Revenue before ordering.

What happens to the money collected from excise taxes?

Each excise tax funds specific state programs. Gas tax revenue goes to transportation projects and infrastructure. Tobacco tax revenue funds smoking prevention and cessation programs. Alcohol tax revenue supports treatment and public health programs. The state legislature decides how to allocate the money each year in the budget.

Does Washington have an excise tax on groceries or clothing?

No. Groceries and most clothing are not subject to excise tax in Washington. They are subject to sales tax, which varies by location. Excise tax applies only to the specific products the state has designated — primarily gasoline, cigarettes, alcohol, and a few others.