What is Iowa's cigarette tax?

Iowa charges a state excise tax of $1.36 per pack of 20 cigarettes. This is below the national average and noticeably lower than several neighboring states. The excise is built into the shelf price, and the state's 6% general sales tax applies on top of the total at checkout.

How much is Iowa's beer and wine tax?

Iowa's beer excise is about $0.19 per gallon and its wine excise is about $1.75 per gallon. These are paid by distributors and folded into the retail price. A standard 12-pack of beer carries only a few cents of state beer excise, so it is a small share of the shelf price.

Why can't I calculate a spirits excise for Iowa?

Iowa is an alcoholic-beverage control state for distilled spirits. Instead of a simple per-gallon excise, the state buys and wholesales spirits through the Alcoholic Beverages Division and applies a markup, so the state revenue is embedded in the wholesale price rather than charged as a fixed per-gallon tax. This tool therefore covers cigarettes, beer, and wine.

Does sales tax apply on top of these excise taxes?

Yes. Iowa's excise taxes are separate from the state's 6% general sales tax (plus any local option tax). The excise is already in the shelf price, and sales tax is then calculated on that price at checkout, so you effectively pay tax on the excise-inclusive amount.

Who actually pays the excise tax?

Legally the distributor or wholesaler remits the excise to the state, but the cost is passed through to consumers in the retail price. So while you do not write a separate check for excise tax, you pay it indirectly every time you buy cigarettes, beer, or wine in Iowa.

Iowa Cigarette & Alcohol Tax Calculator

Email me this result

Get this tool's output sent to your inbox, plus one useful tool a week. No spam, unsubscribe any time.

Iowa adds excise taxes to tobacco and alcohol on top of its general sales tax. This calculator shows how much Iowa state excise is embedded in cigarettes ($1.36 per pack), beer (about $0.19 per gallon), and wine (about $1.75 per gallon). Distilled spirits are handled differently because Iowa is a control state that wholesales spirits with a markup rather than a fixed per-gallon excise.

How it works

The excise is a flat per-unit charge applied before retail sale:

Cigarette excise = packs × $1.36 Beer excise = gallons × $0.19 Wine excise = gallons × $1.75

These taxes are paid by distributors and folded into the shelf price, so you do not pay them as a separate line item — but they raise the price you see. Iowa’s 6% general sales tax (plus any local option tax) is then charged on the excise-inclusive price at checkout.

Notes and conversions

A standard pack of cigarettes is 20 sticks; a carton is 10 packs.
To convert beer/wine to gallons: a 12-pack of 12 oz cans ≈ 1.125 gallons; a 750 ml wine bottle ≈ 0.198 gallons.
Spirits are sold through Iowa’s Alcoholic Beverages Division with a state markup, so there is no simple per-gallon excise to compute.
Iowa’s cigarette excise is lower than many neighboring states, which is why border purchasing patterns differ.

Worked example

A buyer purchases 3 packs of cigarettes and a 12-pack of beer (≈ 1.125 gallons):

Cigarette excise = 3 × $1.36 = $4.08
Beer excise = 1.125 × $0.19 ≈ $0.21

Note: Estimate only. Rates are statewide Iowa excise amounts and may be updated by the legislature. Spirits pricing is set through the state’s control system. Verify current rates with the Iowa Department of Revenue.