Washington's excise tax is a state sales tax on specific goods and services, separate from the standard sales tax you pay on most purchases
Washington does not have a state income tax, so it relies on sales taxes and excise taxes to fund state operations. An excise tax is an additional tax placed on particular items — not everything you buy, but specific products or activities the state wants to discourage or regulate. Washington's excise taxes explore to things like gasoline, cigarettes, alcohol, and certain other goods. The rate varies by product: gasoline has one rate, beer and wine have another, and spirits have a third.
When you buy one of these taxed items, you pay the excise tax at the register along with the regular sales tax. The excise tax is built into the final price you see — you do not pay it separately as a line item on your receipt, though some receipts do show it broken out. The money collected goes to the state general fund or to specific programs tied to that product, depending on which excise tax it is.
Key Takeaways
- Washington imposes excise taxes on gasoline, diesel, cigarettes, smokeless tobacco, beer, wine, spirits, and certain other products at rates that vary by item.
- Excise taxes are included in the price you pay at checkout and are separate from Washington's standard sales tax.
- The revenue from excise taxes funds state programs — for example, gas tax revenue supports transportation infrastructure.
- Excise tax rates change periodically as the state legislature adjusts them, so the amount you pay today may differ from what you paid a year ago.
Which products have excise taxes in Washington
Washington taxes fuel, tobacco, and alcohol at the state level. Gasoline and diesel carry an excise tax per gallon — the rate fluctuates based on a formula tied to fuel prices and inflation. Cigarettes and smokeless tobacco have an excise tax per pack or unit. Beer, wine, and spirits each have different excise tax rates: beer is taxed per barrel, wine per gallon, and spirits per gallon. The state also imposes excise taxes on certain other items such as vapor products and cannabis, though the rates and rules for those differ.
Some excise taxes are state-only, while others are combined with federal excise taxes. When you fill your gas tank, you pay both a Washington state excise tax and a federal excise tax. The same applies to cigarettes and alcohol. The state excise tax is what goes to Washington; the federal portion goes to the U.S. Treasury. Your receipt may not break these out separately, but both are included in the final price.
How excise tax rates are set and when they change
The Washington State Legislature sets excise tax rates through legislation. Rates are not automatic — they require a vote and a new law to change. For some products, the law includes a formula that adjusts the rate based on inflation or other factors. For example, the gas tax rate is adjusted annually based on inflation and fuel prices. For other products like cigarettes, the rate stays the same until the legislature passes a new bill to raise or lower it.
When rates change, the new rate takes effect on a date set by the law — often the first of a month or the start of a fiscal year. Gas stations, liquor stores, and tobacco retailers are required to update their prices to reflect the new excise tax. You may notice the price at the pump or shelf change on that date. The state Department of Revenue publishes the current rates on its website, and rates can be found by searching for the specific product you are interested in.
Where excise tax revenue goes
Excise tax revenue does not all go to the same place. The gas excise tax, for example, is dedicated to the Transportation Fund and supports road maintenance, construction, and public transit. Cigarette and tobacco excise taxes fund the state general fund and certain health programs. Alcohol excise taxes go to the general fund and may support specific initiatives depending on the year's budget. Cannabis excise tax revenue is split between the general fund, local governments, and cannabis-related programs.
Because different excise taxes fund different programs, the state has an incentive to maintain these taxes even if they discourage consumption. A reduction in gas tax revenue, for instance, would mean less money for road repairs. This is why excise taxes tend to be stable or increase over time rather than disappear.
Excise tax versus sales tax: what is the difference
Washington's standard sales tax applies to most goods and services you buy — clothing, groceries, restaurant meals, and so on. The rate varies by location but is typically between 8 and 10 percent. An excise tax is different: it applies only to specific items and is usually a fixed amount per unit (like cents per gallon) rather than a percentage of the price. You pay both taxes when you buy an excised item. For example, when you buy a gallon of gas, you pay the state excise tax per gallon plus the sales tax on the total purchase.
The purpose is also different. Sales tax is a general revenue tool. Excise tax is often used to discourage consumption of a product (like cigarettes) or to fund programs related to that product (like gas tax funding roads). Because excise taxes target specific items, they affect some shoppers more than others — someone who drives a lot pays more gas excise tax than someone who does not.
How to find current excise tax rates
The Washington State Department of Revenue maintains current excise tax rates on its website. You can search for the specific product — gasoline, cigarettes, beer, wine, spirits, or cannabis — and find the rate that applies. Rates are updated when the law changes, so checking the Department of Revenue site gives you the most current information. Some rates change annually (like the gas tax), so if you are planning a budget or trying to understand a price change, checking the official rate is the fastest way to get an accurate number.
Retailers are required to charge the correct excise tax, so if you see a price that seems off, you can verify it against the Department of Revenue rates. If a retailer is charging an incorrect amount, you can report it to the Department of Revenue. Most retailers update their systems automatically when rates change, but errors do happen.
Frequently Asked Questions
Is the excise tax included in the price shown on the pump or shelf?
Yes. The price you see at the gas pump or on a store shelf already includes the excise tax. You do not pay it as a separate charge. Some receipts break out the excise tax as a line item so you can see how much of the total price is tax, but most do not.
Can I get a refund of excise tax I paid?
In most cases, no. Excise taxes are final once you purchase the item. However, certain businesses — such as farms or commercial operations — may be able to claim refunds or exemptions for excise taxes on fuel used for specific purposes. You would need to contact the Department of Revenue to learn whether your situation qualifies.
Why does Washington have excise taxes instead of income tax?
Washington chose not to implement a state income tax, so it relies on sales taxes and excise taxes to fund state services. Excise taxes on specific products like fuel and tobacco generate significant revenue while targeting items the state wants to discourage or regulate.
Do excise taxes explore to online purchases?
Excise taxes explore to the product itself, not the sales channel. If you order gasoline, cigarettes, or alcohol online for delivery in Washington, the excise tax still applies. However, some products like alcohol have restrictions on how they can be sold online, so availability may vary.
What happens if excise tax rates go up?
When rates increase, retailers update their prices to reflect the new tax. You will see the price change at the pump or on the shelf. The increase takes effect on the date set by the law, usually with advance notice so retailers have time to update their systems.