How Can Excise Tax Be Paid Online?


Quick Answer

Pay excise taxes online by visiting the website of the city, county or state corresponding to the taxable purchase, according to CityofBoston.gov. Some states offer tax e-filing options that cover item-specific or general excise taxes, as the State of Hawaii Department of Taxation explains.

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Full Answer

Excise taxes are generally included in the purchase price of items such as gasoline, cigarettes or alcohol, according to Wikipedia. For motor vehicles, boats and events, taxpayers may need to pay excise taxes post-purchase. Some states, such as Hawaii, charge a general excise tax instead of sales tax.

Online payment services are available for cases in which the taxpayer receives a bill following a purchase or for an annual general excise tax. Each state or city has unique laws about excise tax payment, including the amount of time that those liable have to pay, and some states extend exemptions to handicapped residents or veterans, as the Massachusetts Department of Revenue indicates.

The most common excise tax in the United States is levied on fuel, according to the Internal Revenue Service. Tax credits are given to anyone who uses alternative fuel. Certain businesses, such as indoor tanning providers and those that import fishing and archery materials, must pay special excise taxes. Others, such as companies that reduce tractor idling by using devices approved by the Environmental Protection Agency, are exempt from federal excise taxes.

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