Calculating the Effects of Tax Changes on Consumption and Revenue

Tax Calculator Home




Current volume consumed: gallons

Do not include commas

Click here to find the volume of alcohol sold in your state in 2007.


Current revenue: $  Do not include commas

Check with your state's Department of Revenue, Alcohol Beverage Control Board, Liquor Board, or state legislative revenue committee.


Current excise tax rate: $ per gallon

State Excise Tax Rates


Current retail price: $ per gallon
National Average Retail Prices or Formula to Calculate State Average Retail Price


Price elasticity:   You must include the negative sign

Price Elasticity Values
Price elasticity shows the relationship between price changes and consumption.  Larger elasticities will show that a greater increase in price leads to a greater drop in consumption volume.  For example, a price elasticity of -0.35 means that for every 10% increase in price, consumption will decline by 3.5%.


New excise tax rate: $ per gallon

Options for changing the tax rate:

Double the tax rate

National average excise tax rates

Measure the tax increase on a per-drink basis

Match the tax rate of surrounding states


These calculations assume a 7.5% markup on the tax increase.

At the new tax rate that you entered:

New volume: gallons

New revenue: $

Revenue will increase by:

$, or %

Consumption will drop by:

gallons, or


The price of a bottle of liquor will increase by: $


Now, calculate the effects of tax increases for:   Beer    Wine


For more information, refer to State Alcohol Taxes and Health: A Citizen's Action Guide

[Overview | Full Text (PDF)]

Tax Index


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Center for Science in the Public Interest

Alcohol Policies Project

1220 L St. NW, Suite 300

Washington, DC  20005

Phone: 202-332-9110 * Fax: 202-265-4954 * Web: