Champagne tax by state: The cost of a New Year's toast

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Americans will once again raise a glass on New Year's Eve to officiate the end of a year, though the gatherings may be different this year due to the COVID-19 pandemic.

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However, if you're toasting with champagne, it will come at a price. The bottles of bubbly come with an added tax, which differs per state, according to the Tax Foundation.

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While most states have the same tax rate for champagne and table wine, more than a dozen have alternating rates for sparkling wine, the foundation said.

Group of people cheering with champagne flutes with home interior in the background (iStock)

States can levy taxes at the production, wholesale, or retail level, meaning they will absorb the cost. However, generally, it's passed down to the consumer, resulting in a higher price.

Here are how the rates differ per state (rates are based on dollars per gallon)

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The states without prices (New Hampshire, Mississippi, Pennsylvania, Utah and Wyoming)  are called "control states" because the government controls all sales.

  • Alabama: $1.70. 
  • Alaska: $2.50.
  • Arizona: $0.84.
  • Arkansas: $1.41.
  • California: $0.30.
  • Colorado: $0.32. 
  • Connecticut: $1.98. 
  • Delaware: $1.63.
  • Florida: $3.50.
  • Georgia: $1.51. 
  • Hawaii: $2.12. 
  • Idaho: $0.45. 
  • Illinois: $1.39.
  • Indiana: $0.47. 
  • Iowa: $1.75. 
  • Kansas: $0.30. 
  • Kentucky: $3.30. 
  • Louisiana: $2.08. 
  • Maine: $1.24.
  • Maryland: $1.48. 
  • Massachusetts: $0.70. 
  • Michigan: $0.51.
  • Minnesota: $1.82.
  • Mississippi: N/A. 
  • Missouri: $0.42.
  • Montana: $1.06. 
  • Nebraska: $0.95.  
  • Nevada: $0.70.
  • New Hampshire: N/A.
  • New Jersey: $0.88. 
  • New Mexico: $1.70. 
  • New York: $0.30.
  • North Carolina: $1. 
  • North Dakota: $1.22. 
  • Ohio: $1.50.
  • Oklahoma: $2.08.
  • Oregon: $0.67. 
  • Pennsylvania: N/A.
  • Rhode Island: $0.75. 
  • South Carolina: $1.08. 
  • South Dakota: $2.07. 
  • Tennessee: $1.27. 
  • Texas: $0.52.
  • Utah: N/A.
  • Vermont: $0.55. 
  • Virginia: $1.51.
  • Washington: $0.87.
  • West Virginia: $1. 
  • Wisconsin: $0.25. 
  • Wyoming: N/A.

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