An excise tax is a tax levied on specific goods, services, or activities by the federal government and some state governments. It is often included in the price of the product or service. Common examples are taxes on gasoline, alcohol, tobacco, and certain types of vehicle sales. The Internal Revenue Code outlines various federal excise taxes. For instance, the federal excise tax on gasoline in 2025 is $0.184 per gallon, as per the Revenue Procedure 2023-23.
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