Tax Bites - Firearms

45.60%

 

Whether for sport or self-protection, many citizens jump through bureaucratic hoops to legally purchase a firearm. Before they can pull the trigger, the government targets their purchases for taxes.

All gun sales are subject to a federal excise tax of up to 11 percent paid directly by the consumer in addition to the state and local sales tax rates.  But because other taxes are imposed on the manufacturer, the true amount of the price of a gun that pays for taxes must account for federal income taxes, state income taxes, federal payroll taxes, unemployment insurance taxes, workmen’s compensation taxes, local property taxes and any local income taxes, which are paid by the producer. These taxes add another $173 onto the final sale of a $500 firearm.

For a $500 firearm, the government loads on 45.6 percent of the cost in taxes – collecting $228 per gun.