Taxes on Fireworks: Is Your State a Dud?
A handful of states impose special excise taxes on the sale of consumer fireworks.
It's not really the Fourth of July without the flash, boom and crackle of a good fireworks display. Some people love the crowds and grandeur of a big-city extravaganza, while others prefer a community display at the local volunteer fire department. Then there's the backyard fireworks master who provides an Independence Day show for the neighborhood. If that's you, then it's time to stock up on the roman candles, bottle rockets, sparklers and other pyrotechnics you'll need for an unforgettable display. Just beware the explosive tax bill that some states impose!
In 2018, the U.S. pyrotechnics industry raked in $945 million in consumer fireworks sales (plus another $360 million in sales to professional pyrotechnicians). It's hard for some state lawmakers to see those types of revenue figures and not want a piece of the action for their state's coffers. Most states have resisted the temptation, but five states have slapped state-wide excise taxes on the sale of fireworks. Their special "fireworks tax" rates range from 5% to 12%—and that's on top of the regular state and local sales taxes imposed where the fireworks are sold. If you're spending hundreds of dollars (or more???) on your backyard fireworks display, the extra taxes can add up quickly. If you live in one of the states that impose a special tax on fireworks, it might be worthwhile to drive to another state where taxes on firecrackers aren't as high. The extra cost for gas could be far less than the taxes you'll save.
Check out the table below to see if your state imposes a special excise tax on fireworks.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
2019 State Excise Taxes on Fireworks
| State | Tax Rate |
|---|---|
| Georgia | 5% |
| Indiana | 5% |
| Michigan | 6% |
| Pennsylvania | 12% |
| West Virginia | 12% |
-
Stocks Extend Losing Streak After Fed Minutes: Stock Market TodayThe Santa Claus Rally is officially at risk after the S&P 500's third straight loss.
-
What Bilt Cardholders Need to Know as Wells Fargo Exits the ProgramA major shake-up in the Bilt Rewards program could affect your credit card, rent rewards and points strategy heading into 2026.
-
3 Major Changes to the Charitable Deduction in 2026Tax Breaks About 144 million Americans might qualify for the 2026 universal charity deduction, while high earners face new IRS limits. Here's what to know.
-
3 Major Changes to the Charitable Deduction in 2026
Tax Breaks About 144 million Americans might qualify for the 2026 universal charity deduction, while high earners face new IRS limits. Here's what to know.
-
Retirees in These 7 States Could Pay Less Property Taxes Next YearState Taxes Retirement property tax bills could be up to 65% cheaper for some older adults in 2026. Do you qualify?
-
Estate Tax Quiz: Can You Pass the Test on the 40% Federal Rate?Quiz How well do you know the new 2026 IRS rules for wealth transfer and the specific tax brackets that affect your heirs? Let's find out!
-
5 Types of Gifts the IRS Won’t Tax: Even If They’re BigGift Tax Several categories of gifts don’t count toward annual gift tax limits. Here's what you need to know.
-
The 'Scrooge' Strategy: How to Turn Your Old Junk Into a Tax DeductionTax Deductions We break down the IRS rules for non-cash charitable contributions. Plus, here's a handy checklist before you donate to charity this year.
-
Are You Middle-Class? Here's the Most Tax-Friendly State for Your FamilyTax Tips We found the state with no income tax, low property tax bills and exemptions on groceries and medicine.
-
Social Security Benefits Quiz : Do You Know the IRS Tax Rules?Quiz Social Security benefits often come with confusing IRS tax rules that can trip up financially savvy retirees and near-retirees.
-
How Are I Bonds Taxed? 8 Common Situations to KnowBonds Series I U.S. savings bonds are a popular investment, but the federal income tax consequences are anything but straightforward.
