U.S. Tobacco and Alcohol Sales Tax Revenue Drops 1.5% to $23.0 Billion in 2023
In 2023, the U.S. collected $23.0 billion in tobacco and alcohol sales taxes, a slight decrease of 1.5% compared to the $23.4 billion collected in 2022. Among all states, Oklahomans pay the highest per capita tobacco and alcohol sales tax.
Tobacco and alcohol carry a cost beyond their impact on health. Unlike regular sales taxes, these products are subject to additional taxes aimed at reducing consumption. However, revenue from “sin taxes” has seen a slight decline. From 2022 to 2023, U.S. sales tax revenue from tobacco and alcohol dropped from $23.4 billion to $23.0 billion.
Oklahoma Residents Face the Highest Per-Person Costs
In 2023, Oklahoma had the highest per capita tobacco and alcohol sales tax payments in the U.S., with residents aged 21 and older paying an average of $193.46 each. While the state ranks relatively low in specific tax categories—27th for distilled spirits sales taxes and 15th for beer taxes, according to Tax Foundation data—Oklahoma’s overall tax structure contributes to its top ranking. Additionally, Oklahoma imposes a tobacco tax of $2.03 per pack of cigarettes, far below the highest state rate of $5.35 in New York.
In contrast, states like Missouri have much lower tobacco taxes, with a rate of just 17 cents per pack. These relatively low tax rates likely encourage alcohol and tobacco purchases, helping Oklahoma maintain its No. 1 position. Following Oklahoma are New Hampshire ($192.72) and Delaware ($185.72), which also saw high per capita payments.
