Sin Tax



A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. These type of taxes are levied by governments to discourage individuals from partaking in such activities without making the use of the products illegal. These taxes also provide a source of government revenue.


Sin taxes are typically added to liquor, cigarettes and other non-luxury items. State governments favor sin taxes because they generate an enormous amount of revenue and are usually easily accepted by the general public because they are indirect taxes that only affect those who use the products. When individual states run deficits, the sin tax is typically one of the first taxes recommended by lawmakers to help fill the budget gap.

  1. Sales Tax

    A consumption tax imposed by the government on the sale of goods ...
  2. Sin Stock

    A stock of a company that is either involved in or associated ...
  3. Environmental Tariff

    A tax placed on products being imported to or exported from countries ...
  4. Tobacco Tax

    A tax imposed on cigarettes to help pay for healthcare for the ...
  5. Indirect Tax

    A tax that increases the price of a good so that consumers are ...
  6. Gas Guzzler Tax

    An additional tax on the sale of vehicles that have poor fuel ...
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