Washington's excise tax is a state sales tax on specific goods and services, separate from the standard 6.5% sales tax

Washington does not have an income tax. Instead, the state funds itself partly through excise taxes — additional taxes on top of regular sales tax that apply only to certain products. These are not new taxes added to everything you buy. They target specific items: gasoline, cigarettes, alcohol, and certain other goods the state has decided to tax at higher rates.

The excise tax rate varies by product. Gasoline carries a state excise tax of 49.4 cents per gallon as of 2024, though this amount changes annually. Cigarettes are taxed at $3.025 per pack. Beer, wine, and spirits each have their own rates. Some services — like car rentals and hotel stays — also carry excise taxes. The state legislature sets these rates and can change them, which is why the amounts shift from year to year.

You pay excise tax at the point of sale. When you buy a gallon of gas, the pump price already includes the state excise tax. When you buy a pack of cigarettes at a convenience store, the register rings up the excise tax as part of your total. You do not file anything or pay it separately — it is built into what you pay.

Key Takeaways

  • Washington excise taxes apply only to specific products like fuel, tobacco, and alcohol, not to most everyday purchases.
  • The excise tax rate on gasoline is currently 49.4 cents per gallon, but this amount changes each year based on state law.
  • Excise taxes are included in the price you see at checkout; you do not pay them separately or file paperwork.
  • The state uses excise tax revenue to fund transportation, public health programs, and other state services.

Which products have Washington excise taxes

Gasoline and diesel fuel carry the most visible excise tax. The rate is set by statute and adjusted annually. Diesel fuel has a slightly different rate than gasoline. Both are collected at the pump by fuel distributors and sent to the state.

Cigarettes and other tobacco products are taxed at $3.025 per pack of 20 cigarettes as of 2024. Cigars, chewing tobacco, and snuff have different rates. These taxes are collected by wholesalers and retailers.

Alcohol excise taxes vary by type. Beer is taxed per barrel. Wine is taxed per gallon. Spirits (liquor) are taxed per gallon at a higher rate than wine. A person buying a six-pack, a bottle of wine, or a bottle of whiskey pays these taxes as part of the shelf price.

Other excise taxes in Washington include those on car rentals, hotel and motel stays, and certain recreational equipment. Some utilities and specific services also carry excise taxes. The complete list is long and changes when the legislature passes new laws.

How excise tax rates are set and changed

The Washington State Legislature sets excise tax rates through bills. Rates are written into state law and do not change unless lawmakers pass new legislation. This is different from sales tax, which local jurisdictions can adjust within limits.

Excise tax rates on fuel are adjusted annually by a formula set in law. The rate is recalculated each July based on inflation and other factors. That is why you may notice the per-gallon tax changing slightly from year to year. The legislature can also pass bills to change the formula or the base rate itself.

When the legislature raises an excise tax, the change takes effect on the date specified in the law — sometimes immediately, sometimes on a future date. Retailers and distributors are notified in advance so they can update their systems. You will see the change reflected in prices at the pump or register on the effective date.

Where excise tax revenue goes

Excise tax revenue does not go into a general fund. Most of it is dedicated to specific purposes set by law. Fuel excise taxes, for example, go primarily to the Transportation Fund, which pays for road maintenance, public transit, and other transportation infrastructure.

Tobacco excise tax revenue is split among several accounts. Some goes to the General Fund, some to health programs, and some to tobacco prevention and cessation efforts. Alcohol excise taxes also fund specific programs, including alcohol treatment and prevention.

Because these taxes are dedicated to specific uses, the legislature cannot simply redirect the money to other state needs. If lawmakers want to change where excise tax revenue goes, they must pass a new law to do so.

Excise tax versus sales tax: what is the difference

Washington's standard sales tax is 6.5% statewide, though local jurisdictions add their own sales taxes on top. Sales tax applies to most retail purchases — clothing, groceries, electronics, and thousands of other items. It is a percentage of the price.

Excise tax is a fixed amount per unit or a percentage added on top of sales tax, depending on the product. It applies only to specific goods the state has chosen to tax. You pay both sales tax and excise tax on taxed items. For example, when you buy gasoline, you pay the per-gallon excise tax plus sales tax on the total.

The key difference is scope: sales tax is broad and applies to most things, while excise tax is narrow and applies only to specific products. Excise taxes are often higher per dollar spent because they target items the state wants to discourage use of (like cigarettes) or items that create public costs (like fuel, which funds road maintenance).

How to find the current excise tax rate on a specific product

The Washington Department of Revenue publishes current excise tax rates on its website. You can search by product type — fuel, tobacco, alcohol — and find the exact rate that applies. The site also shows historical rates and explains when rates change.

For fuel, the Department of Revenue updates the excise tax rate each July. The new rate is posted on their website before it takes effect. Gas stations and fuel distributors are required to know and apply the correct rate.

For tobacco and alcohol, rates are listed on the Department of Revenue site and are updated when the legislature changes them. Retailers are responsible for charging the correct rate, so if you want to verify what you are being charged, you can look up the current rate and compare it to your receipt.

Frequently Asked Questions

Is Washington excise tax the same as sales tax?

No. Sales tax is a percentage applied to most purchases. Excise tax is a fixed amount per unit or additional percentage that applies only to specific products like fuel, tobacco, and alcohol. You pay both on taxed items.

Why does Washington have excise taxes instead of income tax?

Washington has no state income tax by constitutional choice. The state funds itself through sales taxes, excise taxes, property taxes, and other revenue sources. Excise taxes on fuel and tobacco are major sources of state revenue.

Can I get a refund of excise tax I paid?

Generally, no. Excise taxes are final once paid at the point of sale. Some businesses may be exempt from certain excise taxes if they meet specific criteria, but individual consumers cannot recover excise taxes already paid.

Does the excise tax on gas include federal tax?

No. Washington's 49.4-cent excise tax is separate from the federal fuel excise tax of 18.4 cents per gallon. You pay both. The total tax per gallon is the sum of state and federal rates plus any local sales tax.

What happens if a retailer charges the wrong excise tax?

Retailers are required by law to charge the correct rate. If you believe you were overcharged, you can contact the retailer or the Department of Revenue. Systematic undercharging or overcharging can result in penalties for the business.