Collect Excise Taxes on Regulated Products in Shopify
Automatically add excise duties to alcohol, tobacco, and other regulated products at checkout. Magical Fees keeps your store compliant by applying the correct per-unit or percentage-based excise tax every time.
Below we cover what excise taxes means for Shopify merchants, how Magical Fees & Tariffs handles the setup, and links to detailed guides.
Excise Taxes: Excise taxes are government-imposed taxes on specific regulated products, charged per unit rather than as a percentage of price. They are common on alcohol, tobacco, fuel, and cannabis. Unlike sales tax, excise tax is often built into the product price or shown as a separate line item. Merchants selling these goods must charge the correct rate by product category and jurisdiction.
See it in action
Watch how Magical Fees & Tariffs handles excise taxes on a live Shopify store.
How to Collect Excise Taxes on Shopify
How it works
Getting excise taxes running with Magical Fees & Tariffs takes just a few steps.
How to Charge Excise Taxes on Shopify
- 1
Install Magical Product Fees
Install Magical Product Fees on your Shopify store. The free trial gives you time to configure your fees and test before committing.
- 2
Create excise tax rules
Create excise tax rules with the correct per-unit or percentage rate for your product category. Configure product and collection targeting so the tax applies only to alcohol, tobacco, cannabis, or other regulated goods.
- 3
Test with a sample order
Assign the excise tax rules to the applicable products or collections, place a test order, and verify the excise tax appears as a separate line item with the correct amount.
Further reading
Dive deeper with step-by-step guides and detailed articles about excise taxes.
How to add tariff surcharges or excise fees with Magical Fees
To add a tariff surcharge or excise fee with Magical Product Fees, you can set up either a percentage fee or a fixed fee for specific products.
How to Add Excise Taxes on Shopify
Discover what excise taxes are, what your obligations are as a merchant, and how to add them to your Shopify store with an app.
Where this applies
Regulations and jurisdictions that apply to excise taxes. See full fee schedules for exact amounts and official sources.
Canadian Cannabis Excise Duty
Canada · 5 jurisdictions
| Jurisdiction | Fee |
|---|---|
| Canada (federal) | $1 per gram (or per gram of cannabis equivalent) or 10% of dutiable amount, whichever is higher |
| Ontario | Provincial markup (e.g. percentage of price); set by OCS |
| Alberta | Provincial markup |
| British Columbia | Provincial markup |
| Other provinces and territories | Varies by jurisdiction |
UK Soft Drinks Industry Levy (SDIL)
United Kingdom · 1 jurisdiction
| Jurisdiction | Fee |
|---|---|
| United Kingdom | £0.24 per litre (standard: 8g+ sugar/100ml); £0.18 per litre (higher: 5g to <8g/100ml) |
U.S. Federal Alcohol Excise Taxes
United States · 5 jurisdictions
| Jurisdiction | Fee |
|---|---|
| Federal (Beer — general rate) | $18.00 per barrel (31 gallons) |
| Federal (Wine — 16% ABV or less) | $1.07 per gallon |
| Federal (Wine — 16–21% ABV) | $1.57 per gallon |
| Federal (Wine — 21–24% ABV) | $3.15 per gallon |
| Federal (Distilled Spirits) | $13.50 per proof gallon |
U.S. State Cannabis Excise Taxes
United States · 12 jurisdictions
| Jurisdiction | Fee |
|---|---|
| Alaska | $50/oz flower, $25/oz immature buds, $15/oz trim (weight-based) |
| Arizona | 16% excise tax at retail |
| California | 15% excise tax at retail |
| Colorado | 15% wholesale excise + 15% retail excise |
| Connecticut | $0.00625–$0.0275 per mg THC (potency-based) |
| Illinois | 10–25% excise (THC-tiered) + 6.25% sales tax |
| Maryland | 9% excise tax at retail |
| Massachusetts | 10.75% excise + 6.25% sales tax |
| Michigan | 10% excise + 6% sales tax |
| Minnesota | 10% excise + 6.875% sales tax |
| New York | 9% state THC excise + 4% state sales tax |
| Oregon | 17% retail excise tax |
U.S. Sweetened Beverage Taxes (Soda Taxes)
United States · 7 jurisdictions
| Jurisdiction | Fee |
|---|---|
| Boulder, Colorado | 2 cents per ounce |
| Seattle, Washington | 1.75 cents per ounce |
| Philadelphia, Pennsylvania | 1.5 cents per ounce |
| San Francisco, California | 1 cent per ounce |
| Oakland, California | 1 cent per ounce |
| Berkeley, California | 1 cent per ounce |
| Albany, California | 1 cent per ounce |
U.S. Federal and State Tobacco and Vaping Excise Taxes
United States · 9 jurisdictions
| Jurisdiction | Fee |
|---|---|
| Federal (Cigarettes) | $1.01 per 20-pack |
| Federal (Large Cigars) | $0.4026 per cigar (52.75% of manufacturer's price, capped at $0.4026) |
| Federal (Roll-Your-Own Tobacco) | $24.78 per pound |
| Federal (Smokeless Tobacco — Snuff) | $1.51 per pound |
| Federal (Smokeless Tobacco — Chewing) | $0.5033 per pound |
| Federal (Pipe Tobacco) | $2.8311 per pound |
| State — highest (New York) | $5.35 per 20-pack of cigarettes |
| State — lowest (Missouri) | $0.17 per 20-pack of cigarettes |
| State vaping taxes (varies) | Varies by state — per-mL, per-unit, or percentage of price |
Other Magical Fees & Tariffs use cases
Magical Fees & Tariffs handles more than just excise taxes. Explore what else it can do for your store.
Bottle Deposits
Stay Compliant with U.S. Bottle Deposit Laws on Shopify
Learn more →Canadian Container Deposits
Stay Compliant with Canadian Provincial Container Deposit Laws on Shopify
Learn more →Credit Card Surcharges
Pass Credit Card Processing Fees to Customers on Shopify
Learn more →Eco-Participation Fees
Automate French Eco-Participation Fees on Your Shopify Store
Learn more →Pfand Deposits
Automate German Pfand Deposits on Your Shopify Store
Learn more →Recycling Fees
Add Recycling and Disposal Fees to Shopify Products
Learn more →