Colorado alcohol tax
State alcohol excise, per gallon · tax year 2026 · federal tax excluded
Beer
$0.08
a gallon
Wine
$0.32
a gallon
Spirits
$2.28
a gallon
Rank on spirits
33
among license states
How Colorado taxes a drink
- Colorado does not tax all drink alike. Beer carries $0.08 a gallon, wine $0.32, spirits $2.28. Beer to spirits is a gap of $2.20 on the same volume. The tax follows the alcohol, not the bottle.
- Alcohol reaches the shelf through private wholesalers in Colorado, with the state taking an excise along the way. That makes the rates here complete rather than partial. Set against the other states that do it this way, Colorado comes 33 on spirits.
- Colorado levies $0.08 per gallon on beer against $2.28 on distilled spirits, a differential of $2.20. ⚠️ The gap reflects alcohol content rather than product category — a gallon of spirits contains several times the ethanol of a gallon of beer — so a per-gallon comparison overstates the disparity in per-drink terms. Rates are specific rather than ad valorem, so they do not rise with price and their real value erodes between legislative revisions.
- Colorado licenses private wholesale distribution rather than operating it, so its published excise represents the entirety of state alcohol revenue rather than a component of it. It ranks 33 of 34 comparable license states on spirits. ⚠️ Control states are excluded from that set: their reported rates omit margin and are not commensurable.
At the register
A $75,000 salary
| Tax added | $4.73 |
|---|---|
| You hand over | $64.73 |
| Rate here | 7.89% |
Uses this location’s stored combined rate and category rule. Clothing is one item; address-level coverage varies.
Colorado against Texas
A $75,000 salary
| Measure | Colorado | Texas |
|---|---|---|
| Take-home pay | $59,001 | $61,593 |
| Worth after local prices | $58,197 | $63,383 |
| Share of pay taxed | 21.33% | 17.88% |
| State sales tax | 2.9% | 6.25% |
| Groceries exempt here | Yes | Yes |
| Clothing exempt at $100 | No | No |
| Property tax rate | 0.48% | 1.49% |
| Price level | 101.4 | 97.2 |
| Housing prices | 130.5 | 97.4 |
| Fuel tax | 22¢ | 20¢ |
| Tobacco tax | $2.24 | $1.41 |
City income tax excluded. Sales-tax row: state-only. Exemptions: Colorado, Statewide average; Texas, Harris County (Houston). Clothing: one $100 item; higher prices can change tax.
Beer, wine and spirits, per gallon
All three are charged per gallon of drink, which makes them directly comparable with each other — though nobody buys a gallon at a time, and per glass the gaps look much smaller. Federal tax is charged on top and is not included.
| Drink | Per gallon | On 10 gallons |
|---|---|---|
| Beer | $0.08 | $0.80 |
| Wine | $0.32 | $3.20 |
| Spirits | $2.28 | $23 |
What this page cannot tell you
- ⚠️ These are per gallon, which is not how anybody buys a drink. Per glass the differences between beer, wine and spirits look much smaller than they do here.
- Federal alcohol tax is charged on top of all of this, and general sales tax usually lands on the final price as well. Neither is included in Colorado's figures here.
- Some cities and counties add their own drink taxes too, and those are not counted here.
- ⚠️ Rates are per gallon of beverage, not per unit of alcohol or per serving. Normalizing by ethanol content or by standard drink compresses the beer-to-spirits differential substantially, so per-gallon figures overstate the disparity a drinker experiences.
- Federal excise applies in addition and is excluded, being uniform nationally. General sales tax, where Colorado levies one, also applies at retail on a price that already embeds the excise — so the two compound, and neither layer is included in these figures.
- Local alcohol excise and on-premise drink taxes exist in a number of jurisdictions and are excluded; these figures cover Colorado's state-level rates only. On-premise sales are also frequently taxed differently from off-premise, which this dataset does not distinguish.
Questions people ask
Is the alcohol tax added at the checkout?
Charged by the gallon, upstream, and already in the price. Beer, wine and spirits carry different per-gallon rates, so two bottles at one price can carry very different tax.
Is this a cheap state for this?
It sits low, at 33 of 34. That is the tax rather than the price — the rest of what you pay is production and margin.
Who actually sells the spirits here?
Licensed private sellers. The state collects duty rather than a trading margin, so its rate is comparable with other licensing states but not with control states.
At what stage is alcohol excise levied?
Alcohol excise is levied per gallon at the producer or wholesaler stage and is embedded in retail prices. Rates are set separately by beverage class, so effective tax per container varies with alcohol content and volume rather than with retail price. General sales tax may apply additionally at the point of sale.
Where does this state sit in the national distribution?
This state ranks 33 of 34, in the lower third. ⚠️ Excise rank is a poor proxy for retail price: production, distribution and retail margin dominate the final figure, and the tax component is the only part under state control.
How does a license jurisdiction structure alcohol revenue?
This is a license jurisdiction: private operators distribute and retail under state license, and state revenue accrues as excise rather than as trading margin. Published rates are therefore comparable across license states. ⚠️ Rankings exclude control states, whose revenue structure is not equivalent.