Selling alcohol in Texas involves more than ordinary sales tax. Which tax applies depends on who you are in the supply chain, the permit you hold from the Texas Alcoholic Beverage Commission (TABC), and whether the drink is consumed on your premises or taken away. Texas uses three layers:
- Excise taxes on the volume of alcohol, paid by manufacturers, distributors, wholesalers, and direct shippers.
- Mixed beverage taxes on drinks served for on-premises consumption by bars and restaurants that hold a mixed beverage permit.
- Ordinary sales tax (6.25% state plus up to 2% local) on alcohol sold to-go, for pickup, for delivery, or at a package store.
This article is educational information, not tax or legal advice. Rates and permit rules change; confirm current requirements with the Texas Comptroller and TABC before collecting or remitting tax.
Texas alcohol excise tax rates
Excise taxes are charged per gallon (or per container for miniatures) and are built into the wholesale price, so most retailers never remit them directly. According to TABC, the current rates are:
| Beverage class | Excise tax rate |
|---|---|
| Distilled spirits | $2.40 per gallon |
| Distilled spirit miniatures (20–60 mL) | $0.05 per container |
| Wine, 14% alcohol by volume or less | $0.204 per gallon |
| Wine, more than 14% alcohol by volume | $0.408 per gallon |
| Sparkling wine | $0.516 per gallon |
| Malt beverages (beer) | $0.193548 per gallon |
Distributors, wholesalers, and manufacturers file excise tax reports with TABC monthly, due on or before the 15th of the following month. Manufacturers authorized to sell directly to consumers and direct shippers also owe excise tax on those sales; direct shippers under 5,000 gallons a year file quarterly.
Mixed beverage taxes for bars and restaurants
Businesses with a TABC mixed beverage permit owe two separate taxes on alcohol served for on-premises consumption, according to the Texas Comptroller:
- Mixed beverage gross receipts tax (6.7%) on total receipts from alcoholic beverages, plus ice and nonalcoholic mixers sold to be mixed with alcohol. This tax is the permittee's own cost: it cannot be added to or deducted from the drink price.
- Mixed beverage sales tax (8.25%) collected from the customer on each alcoholic drink, and on ice and nonalcoholic mixers served with alcohol.
These taxes apply to on-premises sales of spirits, beer, and wine alike. Food sold alongside drinks remains subject to ordinary sales tax. Mixed beverage returns are filed monthly and are due on or before the 20th of the following month. There is no separate local mixed beverage tax; instead, the state rebates a share of mixed beverage revenue to the counties and cities where it was collected.
Sales tax on to-go, delivery, and package store sales
Alcohol that leaves the premises is taxed differently. The Comptroller states that pickup, delivery, and to-go sales of alcohol are not subject to mixed beverage taxes. They are subject to ordinary sales and use tax instead: 6.25% state tax plus up to 2% local tax, for a combined maximum of 8.25%.
The same applies to package stores, grocery and convenience stores selling beer and wine, and other retailers selling alcohol for off-premises consumption. The local rate depends on where the sale takes place, or for deliveries, where the order is delivered.
Shipping alcohol to Texas consumers
Texas limits who may ship alcohol directly to consumers, according to TABC's wine shipping rules:
- Texas wineries with a Winery Permit (G) may ship wine to consumers 21 and older.
- Out-of-state wineries need an Out-of-State Winery Direct Shipper's Permit (DS) from TABC and a Texas sales and use tax permit from the Comptroller.
- Both are limited to 9 gallons of wine per consumer in a calendar month and 36 gallons in a 12-month period, and shipments must go through a carrier holding a TABC Carrier's Permit (C).
- Texas package stores (P or Q permits) may deliver only within their local area.
- Out-of-state retailers and wholesalers may not ship alcohol directly to Texas consumers.
Out-of-state wineries must collect the 6.25% state sales tax and up to 2% local tax based on where the order is delivered, or they may elect the single local use tax rate that Texas offers remote sellers (Comptroller Publication 94-179).
Economic nexus for remote sellers
Remote sellers that do not ship alcohol still need to watch Texas's economic nexus threshold: $500,000 in Texas revenue over the previous 12 months. Once over it, a seller must register with the Comptroller, collect state and local sales tax, and file returns. Out-of-state wineries cannot rely on that threshold: per Comptroller Publication 94-179, the remote-seller safe harbor does not apply to them, so a winery shipping to Texas consumers must hold a Texas sales tax permit and collect tax even below $500,000 in Texas sales. For rates, deadlines, and the single local use tax rate option, see Kintsugi's Texas Sales Tax Guide.
Recordkeeping
Keep beverage-level records that separate on-premises drinks, to-go sales, and food, since each lands on a different return. Retain invoices from distributors to support excise tax already paid, and keep TABC permits current: the permit type decides which taxes apply.
FAQs
What is the alcohol tax rate in Texas?
It depends on how the alcohol is sold. Drinks served in a bar or restaurant carry an 8.25% mixed beverage sales tax paid by the customer, plus a 6.7% gross receipts tax paid by the business. Alcohol sold to-go or at a package store carries ordinary sales tax of 6.25% plus up to 2% local. Excise taxes, such as $2.40 per gallon on spirits, are paid further up the supply chain.
Is beer taxed differently from liquor in Texas?
At the excise level, yes: malt beverages are taxed at $0.193548 per gallon and distilled spirits at $2.40 per gallon. At the retail level, the same sales tax or mixed beverage tax applies regardless of beverage type.
Do I charge sales tax on alcohol sold for delivery in Texas?
Yes. Pickup, delivery, and to-go alcohol sales are subject to state and local sales tax, not mixed beverage taxes.
Can I ship wine to customers in Texas from another state?
Only if you are a winery with a TABC Out-of-State Winery Direct Shipper's Permit and a Texas sales tax permit. Out-of-state retailers cannot ship alcohol to Texas consumers.
How Kintsugi helps
Kintsugi calculates Texas state and local sales tax on taxable sales, monitors economic nexus across states, and files returns, so alcohol sellers can keep their sales tax obligations organized alongside TABC and excise requirements.
Related resource: For current rates, nexus thresholds, filing deadlines, and FAQs, see Kintsugi's Texas Sales Tax Guide.
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