Theo Nash
Alcohol excise taxes in Georgia are collected by the wholesaler at the time of delivery to the retailer. These taxes are then generally passed on to the consumer in the beverage's price. Taxes vary depending on the type of alcohol and the quantity. For example, brewpubs and breweries are taxed at a rate of $6.00 per half barrel (15½ gallons) and $12.00 per barrel (31 gallons), while distilleries are taxed at a rate of $0.22 per liter or $0.0065 per ounce. Excise tax returns for malt beverages, wines, distilled spirits, and other tobacco products are submitted through the Georgia Tax Center.
| Characteristics | Values |
|---|---|
| Federal excise tax rates on beer, wine, and liquor | Varies depending on the percentage of alcohol in the product |
| Excise tax on distilled spirits sold by the drink | 3% based on the price charged to the public |
| Excise tax on beer and malt beverages produced by brewpubs and breweries | $6.00 per half barrel (15½ gallons) and $12.00 per barrel (31 gallons) |
| Excise tax on distilled spirits produced by distilleries | $0.22 per liter or $0.0065 per ounce |
| Excise tax on wine and distilled spirits sold by wholesalers to retailers | $0.22 per liter or $0.0065 per ounce |
| Excise tax on beer and malt beverages sold by wholesalers | $0.05 per 12-ounce container, $6.00 for each container of tap or draft beer or malt beverage of 15½ gallons |
| Due date for excise tax payments in South Fulton, GA | On or before the 20th day of each month for the preceding calendar month |
| Penalty for late payment of excise taxes | Late payment penalty added to the amount due; the penalty varies for each tax |
| Requirements for direct-to-consumer (DTC) shipments of wine in Georgia | Labels must indicate alcoholic content and require the signature of a person 21 years or older for delivery |
| Tax on DTC shipments | Sales and use tax applied at the state, county, city, or special district levels; "markup" taxes where the retail value is multiplied by a percentage rate, and "gallonage"-based excise taxes are common |
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What You'll Learn
Alcohol excise taxes in Georgia
In Suwanee, GA, licensees who sell distilled spirits by the drink must collect a 3% excise tax based on the price charged to the public. Breweries and brewpubs in Suwanee must pay an excise tax on all beer and malt beverages produced, at a rate of $6.00 per half barrel (15.5 gallons) and $12.00 per barrel (31 gallons). Distilleries are taxed at a rate of $0.22 per liter or $0.0065 per ounce, while wholesalers distributing beer and malt beverages are taxed at a rate of $0.05 per 12-ounce container. Wholesalers distributing tap or draft beer pay $6.00 per 15.5-gallon container, with similar proportions for bottles, cans, and other containers.
In South Fulton, GA, wholesalers selling alcoholic beverages to retailers are required to collect and remit excise taxes to the City on or before the 20th day of each month for the preceding calendar month. Failure to file a return or remit the tax may result in suspension or revocation of the wholesaler's license.
Federal alcohol excise taxes are also included in the price of alcohol sold in Georgia and are generally passed on to the consumer. These taxes are collected from the brewer or distiller by the Alcohol and Tobacco Tax and Trade Bureau, with some tax discounts available to small brewers.
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Federal alcohol excise taxes
Alcohol excise taxes in Georgia are collected by the Alcohol and Tobacco Tax and Trade Bureau from the brewer or distiller and are generally passed on to the consumer in the beverage's price. These taxes are based on reducing external harms created by alcohol consumption. They increase market prices, decrease consumption, and generate revenue to fund anti-addiction programs, incentives for sober driving, and education programs.
Federal excise tax rates vary depending on the type of alcohol and its alcohol content. Spirits are taxed more heavily than other types of alcohol, with distilled spirits subject to a federal excise tax of up to $13.50 per proof gallon. For example, a cocktail containing 0.6 ounces of alcohol in the form of 40-proof spirits is taxed at more than three times the rate of a 5-ounce glass of 12% wine and more than double the rate of a 12-ounce 5% beer, despite all three drinks containing the same amount of alcohol.
In addition to federal excise taxes, state excise taxes are collected on fermented malt beverages in all 50 states and the District of Columbia. These state excise taxes are often in addition to general sales taxes from state and municipal governments. For example, in Suwanee, Georgia, licensees who sell distilled spirits by the drink must collect a 3% excise tax, while brewpubs and breweries are subject to an excise tax of $6.00 per half barrel (15.5 gallons) and $12.00 per barrel (31 gallons).
The various tax rates and categories for alcohol make taxes on alcohol non-neutral. Taxes on alcohol have been a contentious issue since the federal government levied its first whiskey tax in 1791, and the Whiskey Rebellion that followed.
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Direct-to-consumer alcohol tax rates
In Georgia, direct-to-consumer (DTC) alcohol shipments are subject to sales tax requirements and alcohol excise taxes. The price of alcohol sold in Georgia includes federal alcohol excise taxes, which are typically passed on to the consumer. These taxes are collected by the wholesaler at the time of delivery to the retailer and are based on the type of alcohol being sold.
For example, in Suwanee, GA, licensees who sell distilled spirits by the drink are subject to a 3% excise tax based on the price charged to the public. Breweries and brewpubs are taxed at a rate of $6.00 per half-barrel (15.5 gallons) and $12.00 per barrel (31 gallons) for beer and malt beverages. Distilleries are taxed at a rate of $0.22 per liter or $0.0065 per ounce for distilled spirits. Wholesalers distributing distilled spirits and wine in Suwanee are taxed at the same rate as distilleries and are required to collect taxes at the time of delivery.
In South Fulton, GA, wholesalers selling alcoholic beverages to retailers are also required to collect and remit excise taxes to the City on a monthly basis. These taxes must be paid by the 20th day of each month for the preceding calendar month, along with a completed wholesale tax return form. Failure to comply with these requirements can result in suspension or revocation of the wholesaler's license.
It's important to note that tax rates, rules, and regulations can change frequently, and there may be additional taxes or discounts based on specific circumstances. For example, federal excise tax rates on beer, wine, and liquor vary depending on the percentage of alcohol in the product. Additionally, some tax discounts may be available to small brewers.
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Alcohol tax on wholesale distribution
Alcohol taxes in Georgia are collected by the wholesaler at the time of delivery to the retailer. Wholesalers distributing distilled spirits and wine shall collect an excise tax at the rate of $0.22 per liter or $0.0065 per ounce on all distilled spirits and wine sold to retailers in the city. The tax shall be collected at the time of delivery. Wholesalers distributing beer and malt beverages shall collect an excise tax at a rate of $0.05 per 12-ounce container and $6.00 for each container of tap or draft beer or malt beverage of 15½ gallons and in similar proportion for bottles, cans, and other containers. Brewpubs and breweries must submit an excise tax on all beer and malt beverages produced at the rate of $6.00 per half barrel (15½ gallons) and $12.00 per barrel (31 gallons).
Licensees who sell distilled spirits by the drink are required to collect a 3% excise tax based on the price charged to the public for the alcoholic beverage. Distilleries must submit an excise tax on all distilled spirits produced at the rate of $0.22 per liter or $0.0065 per ounce.
Federal alcohol excise taxes are also included in the price of all alcohol sold in Georgia. These taxes are collected from the brewer/distiller by the Alcohol and Tobacco Tax and Trade Bureau and are generally passed on to the consumer in the beverage's price. Some tax discounts are available to small brewers.
The Alcohol & Tobacco Division of the Georgia Department of Revenue is responsible for licensing, tax collection, and enforcing the state's laws and regulations. All businesses that deal with manufacturing, distributing, selling, or importing alcohol in Georgia must be licensed. An out-of-state distilled spirits supplier must obtain a Distilled Spirits Wholesale License from the Georgia Department of Revenue's Alcohol & Tobacco Division to sell to licensed retailers in the state.
Direct-to-consumer shipments (DTC) of alcohol in Georgia are also subject to taxes. These include "markup" taxes, where the retail value of the alcohol is multiplied by a percentage rate, and "gallonage"-based excise taxes. Labels approved for wholesale distribution must be resubmitted and approved for direct-to-consumer sales, and shipments of wine must be packaged in containers conspicuously labeled to indicate alcoholic content. The signature of a person 21 years of age or older is required for delivery. Additionally, late payment penalties will be added for any excise tax payments not received by the due date.
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Penalties for late tax payments
The price of alcohol in Georgia includes federal alcohol excise taxes, which are collected from the brewer or distiller and usually passed on to the consumer. Alcohol is also subject to state and local sales tax. Beer in Georgia is taxed at 4.5 cents per 12-ounce can or bottle, plus a uniform local beer tax of 5 cents per can. Wine is taxed at 11 to 67 cents per liter, and liquor is taxed at 50 cents to $1.40 per liter, depending on the alcohol percentage and manufacturing location. Additionally, there may be a local tax of up to 22 cents per liter, known as the "by the drink" tax. These alcohol taxes are typically paid by the wholesaler or manufacturer but may be included in the retail price.
Now, let's discuss the penalties for late tax payments in Georgia:
The Georgia Department of Revenue imposes penalties for late tax payments and filings. The late payment penalty is calculated based on the amount of tax owed and the number of months the payment is overdue. For instance, if a business owner owes $1000 in sales tax for May and misses the June 20th deadline, they will be charged an initial penalty of $50. If the payment is delayed for more than one month, an additional $50 will be charged for the second month, resulting in a total penalty of $100.
The Department of Revenue also charges interest on past-due taxes from the original due date until the payment date. The interest rate is calculated as the Federal Reserve prime rate plus 3%. As of May 2025, with a prime rate of 7.5%, the interest rate for past-due sales tax in Georgia is 10.5%. This interest is compounded monthly and can result in significant additional costs over time.
In addition to the late payment penalty, the Department of Revenue may impose a failure-to-file penalty, which is either 5% of the total amount due or 5%, whichever is greater. This penalty is added to the balance for each month the return remains unfiled, up to a maximum of 25% of the amount owed. It's important to note that the combined total of the late payment and failure-to-file penalties cannot exceed 25% of the unpaid tax.
However, taxpayers in Georgia can request penalty waivers if they have valid reasons for their late payments. The Department of Revenue considers factors such as the taxpayer's filing and payment history when deciding on penalty waivers. Additionally, Georgia offers a special settlement program called the Voluntary Disclosure Agreement (VDA) for those with unfiled sales tax returns. If accepted into the program before being contacted by the state, individuals will only pay the outstanding tax and interest, with all penalties waived.
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Frequently asked questions
Alcohol taxes in Georgia are collected by the wholesaler at the time of delivery to the retailer. The taxes vary depending on the type of alcohol and the quantity. For example, the excise tax for distilled spirits is $0.22 per liter, whereas for beer, it is $0.05 per 12-ounce container.
An excise tax is a tax on the sale or production of a particular good, in this case, alcohol. Excise taxes are typically imposed on goods deemed harmful or undesirable, such as alcohol and tobacco.
The wholesaler is responsible for collecting and remitting the excise tax to the state. However, the tax is usually passed on to the consumer in the beverage's price.
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