Alcohol

Price of Spirits

The price of spirits in Iowa is comprised of several cost factors, including supplier costs, federal and state excise taxes and a variety of other charges. For instance, the final cost that an Iowa consumer could expect to pay, on average, for a 750 ML bottle of Jack Daniels Tennessee Whiskey with a shelf price of $23.99, is $25.43. That price includes the following elements:

Bottle Deposit and Surcharge, .35% $ .09 .35% Bottle Deposit & Surcharge
State Sales Tax, 5.66%
$1.44 5.66% State Sales Tax (6%)
Federal Excise Tax, 8.42%
$2.14 8.42% Federal Excise Tax
Average Retail Mark-Up, 23.20%
$5.90 23.20% Average Retail Mark-Up (26.5%)
State Excise Tax, 23.60%
$6.00 23.60% State Excise Tax (50% Mark-Up)
Distiller Cost and Profit, 38.77%
$9.86 38.77% Distiller Cost & Profit
  $25.43   Total Cost of bottle