Montana has the 12th highest tax on spirits in the nation at $9.78 per gallon.
Compared to taxes on alcoholic beverages such as wine and beer, distilled spirits are taxed at much higher rates across the states, ostensibly to adjust for higher alcohol content.
Washington state has the highest spirits excise tax rate at $32.52 per gallon, followed by Oregon ($22.75), Virginia ($19.93), Alabama ($18.27), and Utah ($15.38). Spirits are taxed the least in Wyoming and New Hampshire, where government-run stores have set prices low enough that they are comparable to having no taxes on spirits. Following Wyoming and New Hampshire are Missouri ($2.00), Colorado ($2.28), Texas ($2.40), and Kansas ($2.50).
Like many excise taxes, the treatment of spirits varies widely across the states. Spirits excise rates may include a wholesale tax rate converted to a gallonage excise tax rate; case and/or bottle fees, which can vary based on size of container; retail and distributor license fees, converted into a gallonage excise tax rate; as well as additional sales taxes. (Note that this measure does not include general sales tax, only taxes in excess of the general sales tax rate.) Rates may also differ within states according to alcohol content, place of production, or place purchased (such as on- or off-premise or onboard airlines).