Wine Tax Basics Guide

The wine tax is a tax on wine, hard cider, and beer over 5% alcohol by volume (ABV) sold in Idaho.

Wine tax rate

The Idaho wine tax rate is 45 cents per gallon. It’s been this rate since the tax began in 1971.

Who needs a wine tax permit

These businesses must have a wine tax permit and file regular tax returns:

  • Idaho wineries, cideries, breweries, distributors, and other businesses that manufacture, bottle, or sell wine, hard cider, and beer over 5% ABV.
  • Idaho businesses that sell wine, hard cider, and beer over 5% ABV wholesale.
  • Wineries and cideries that ship wine or hard cider directly to Idaho residents (direct shippers). See 

See Applying for Wine Permits.  

Reporting wine sold in Idaho

Various state agencies such as the Idaho Wine Commission get a share of the wine tax on sales of wine and hard cider in Idaho. These agencies use the money to help the wine industry and other causes, so it’s important to report these sales correctly. This applies to Idaho wineries, cideries, breweries, and distributors.

“Idaho wine” means all wines or hard ciders, regardless of fruit origin, that an Idaho winery, cidery, or brewery manufactures, bottles, or sells.

  • If you’re an Idaho winery, cidery, or brewery: Report all Idaho wine gallons that you sell in Idaho, except gallons:
    • That you sell to distributors.
    • That you sell to other wineries, cideries, or breweries. (They pay the wine tax.)
    • That Idaho exempts (sold onto a military base or to the Idaho Liquor Dispensary).
  • If you’re a distributor: Report all Idaho wine gallons that you sell in Idaho, except gallons that Idaho exempts.

 

You report Idaho wine gallons sold in Idaho on your Form 1756, Distributors, Wholesalers, Wineries, Direct Shippers, and Brewers of Beer Over 5% Alcohol by Volume Tax Return. You also report out-of-state wine sold in Idaho on Form 1756. See Filing and Paying.

Tax administration, regulation, and enforcement for wine

  • The Idaho State Tax Commission collects and enforces beer and wine taxes.
  • The Alcohol Beverage Control Bureau of the Idaho State Police ensures that all establishments selling or producing beer and wine are properly licensed and conform to the law.
  • The Idaho Department of Health and Welfare regulates safety and sanitation standards for establishments making retail sales of beer and wine in Idaho.
  • Most counties require a permit from their recorder’s office.
  • Cities will require a license from their clerk’s office.
  • The United States Department of the Treasury also regulates alcohol in Idaho.