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
Be a smarter, better informed investor.
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% |
-
Amazon Ends Free Shipping Benefit Sharing with Non-Household MembersStarting October 1, Prime members will no longer be able to share shipping perks with those outside their household.
-
Big Tech Names Rise Above Broad Weakness: Stock Market TodaySome familiar names enjoyed solid rallies on the resolution of outstanding questions, but macro uncertainty hangs over the broader market.
-
Over Age 65? New $6,000 'Senior Bonus' Deduction Is Available Even If You ItemizeTax Changes If you’re an older adult, a new bonus tax deduction could provide a valuable tax benefit. Here's how it works.
-
Stay NJ Could Give You $6,500: The Deadline You Can't MissProperty Taxes New Jersey has a new property tax relief program for 2025. The application deadline is approaching fast.
-
The Fall Garden Tax? What to Plant and How to PrepareTax Tips Fall gardening could increase your taxes this season. Here’s what to know while planting in 2025.
-
Texas Sales Tax-Free Weekend 2025Tax Holiday Here's what you needed to know about the Texas sales tax holiday.
-
Retirees Should Watch These Four Key Tax Changes in 2025Tax Changes This year brings key tax changes that could affect your retirement taxes and income.
-
The Most Tax-Friendly State for Retirement in 2025: Here It IsRetirement Tax How do you retire ‘tax-free’? This state doesn’t tax retirement income, has a low median property tax bill, and even offers savings on gas. Are you ready for a move?
-
Five Ways Trump’s 2025 Tax Bill Could Boost Your Tax Refund (or Shrink It)Tax Refunds The tax code is changing again, and if you’re filing for 2025, Trump’s ‘big beautiful’ bill could mean a bigger refund, a smaller one or something in between next year. Here are five ways the new law could impact your bottom line.
-
New SALT Deduction Could Put Thousands Back in California Homeowners’ PocketsTax Breaks The federal state and local sales tax (SALT) deduction cap is higher this year, and could translate into bigger savings for Golden State homeowners.
