Federal Excise Tax on Firearms

The Federal Excise Tax on Firearms is a tax imposed by the U.S. government on manufacturers, producers, and importers of firearms and ammunition. It typically applies as a percentage of the sales price and is designed to generate revenue for federal programs, including wildlife conservation. The current rate is 10% on handguns and ammunition, and 11% on long guns. This tax is included in the price consumers pay when purchasing firearms and is collected by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), contributing to regulatory oversight of the firearms industry.