{
  "slug": "distillery-proof-gallon-tax",
  "title": "Distillery Proof Gallon Excise Tax Calculator",
  "heading": "Distillery Proof Gallon Excise Tax Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/distillery-proof-gallon-tax",
  "summary": "Convert wine gallons and proof to taxable proof gallons and federal tax owed.",
  "description": "Federal spirits excise tax is calculated on proof gallons, not wine gallons or bottle count, and a proof gallon is one liquid gallon at 100 proof (50% ABV). This means a gallon of 80-proof vodka is only 0.8 proof gallons for tax purposes, while a gallon of 130-proof cask-strength whiskey is 1.3 proof gallons. This calculator converts your actual production volume and proof into proof gallons and applies the tiered federal rate: $2.70 per proof gallon on the first 100,000 proof gallons removed for small distillers under the Craft Beverage Modernization Act, $13.34 per proof gallon on the next 22.13 million, and $13.50 above that. Get this conversion wrong and you either underpay (triggering penalties) or badly overestimate your tax liability when planning cash flow.",
  "formula": "Proof gallons = wine gallons × (proof ÷ 100). Tax tiers: $2.70/PG up to 100,000 PG (small distiller), $13.34/PG next tier, $13.50/PG above ~22.23M PG.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=distillery-proof-gallon-tax",
  "inputs": [
    {
      "id": "wineGallons",
      "label": "Wine gallons removed (annual)",
      "kind": "number",
      "hint": null,
      "default": 8000,
      "unit": null,
      "min": 0,
      "max": null
    },
    {
      "id": "proof",
      "label": "Proof (e.g. 80 proof = 40% ABV)",
      "kind": "number",
      "hint": null,
      "default": 80,
      "unit": null,
      "min": 20,
      "max": 190
    },
    {
      "id": "smallDistiller",
      "label": "Eligible for small distiller reduced rate",
      "kind": "select",
      "hint": null,
      "default": "yes",
      "options": [
        {
          "value": "yes",
          "label": "Yes"
        },
        {
          "value": "no",
          "label": "No"
        }
      ]
    }
  ],
  "outputs": [
    {
      "id": "tax",
      "label": "Estimated federal excise tax",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "proofGallons",
      "label": "Total proof gallons",
      "format": "number",
      "hint": null,
      "primary": false
    },
    {
      "id": "effectiveRatePerWineGal",
      "label": "Effective tax per wine gallon",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Wine gallons removed (annual): 8000",
      "Proof (e.g. 80 proof = 40% ABV): 80",
      "Eligible for small distiller reduced rate: Yes"
    ],
    "outputs": [
      "Estimated federal excise tax: $17,280",
      "Total proof gallons: 6,400",
      "Effective tax per wine gallon: $2.16"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter wine gallons removed (annual).",
      "Enter proof (e.g. 80 proof = 40% abv).",
      "Enter eligible for small distiller reduced rate.",
      "Read your estimated federal excise tax on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "wineGallons": 4800,
        "proof": 48,
        "smallDistiller": "yes"
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "wineGallons": 8000,
        "proof": 80,
        "smallDistiller": "yes"
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "wineGallons": 12800,
        "proof": 128,
        "smallDistiller": "yes"
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "What exactly is a proof gallon?",
      "a": "One proof gallon equals one liquid gallon of spirits at 100 proof (50% ABV). To convert, multiply your wine gallons (the actual liquid volume) by proof divided by 100. An 80-proof product only counts as 0.8 proof gallons per wine gallon for tax purposes, which is why higher-proof products carry more tax per bottle at the same volume."
    },
    {
      "q": "Who qualifies as a small distiller for the $2.70 rate?",
      "a": "The reduced rate structure under the Craft Beverage Modernization Act applies to the first 100,000 proof gallons removed by a distiller in a calendar year (subject to controlled group aggregation rules), regardless of total annual production size, though the benefit phases differently for larger overall producers — check current TTB rules for your situation."
    },
    {
      "q": "Does this include state alcohol tax?",
      "a": "No, this is federal TTB excise tax on distilled spirits only. State spirits excise tax is separate, calculated differently by state (some by proof gallon, some by wine gallon, some ad valorem), and in control states the state effectively sets pricing through markup rather than a simple per-gallon tax."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/distillery-mash-bottle-yield",
    "https://www.revenuelab.fyi/toolbox/brewery-excise-tax-barrel"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Distillery Proof Gallon Excise Tax Calculator (https://www.revenuelab.fyi/toolbox/distillery-proof-gallon-tax)"
}