Putting the Tax Calculator to Work

Here is an example of how each field should look once you input the data and press the "Calculate" button:

Current volume consumed: gallons  Do not include commas
Click here to find your state's consumption volumes in 2001.

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 of 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 six-pack of beer will increase by: $

The price of a case of beer will increase by: $

To see an example write-up of how to use the data generated by this Tax Calculator, read a Sample State Report.