Free tool
Federal Excise Tax Calculator (CBMA)
The Craft Beverage Modernization Act (CBMA) taxes distilled spirits at reduced rates on initial volume each calendar year. Enter proof gallons removed to estimate federal excise tax under the tiered rates and your savings vs the flat $13.50 standard rate.
The formula
first 100,000 PG @ $2.70; 100,001-22,230,000 PG @ $13.34; above @ $13.50 (per calendar year, cumulative)
26 USC 5001 / CBMA as amended; rates per proof gallon. This tool uses the same calculation as the Spirit Sight platform. It is general information, not tax or legal advice.
What are the CBMA excise tax rates?
For distilled spirits: $2.70 per proof gallon on the first 100,000 PG removed per calendar year, $13.34 on the next tier up to 22,230,000 PG, and $13.50 above that.
How much does CBMA save a craft distillery?
On the first 100,000 proof gallons the rate is $2.70 instead of $13.50, a saving of $10.80 per proof gallon. The calculator shows your exact saving.
Is the reduced rate per year?
Yes. The reduced tiers reset each calendar year and are consumed cumulatively as you remove spirits from bond.
See your distillery in Spirit Sight
Book a walkthrough with our team. We’ll show your operation - barrels, TTB, and the books - in one place.
Schedule a Demo