Shaken, stirred, and on the fence: State cocktail-to-go laws

• About 30 states allow cocktails to go, and a few more allow takeout and delivery sales of beer and wine but not spirits.
   

• California, Illinois, New Jersey, and New York allow cocktails to go as of August 2025, but the laws are set to expire.
   

• Selling food and alcohol through delivery apps can complicate sales tax compliance, leading to over- or undercollection of tax.

As of August 2025, delivery and/or takeout sales of alcohol are permanently allowed in more than 30 states:

Some states still allow delivery and takeout sales of alcohol temporarily but aren’t ready to make the policy permanent. These include the following (listed with the date the allowance is set to expire):

One issue facing states as they establish or extend alcohol-to-go policies is whether (and to what extent) to allow third parties to deliver alcohol on behalf of licensed sellers. 

Arkansas and Montana are among the states to have authorized third-party delivery. Montana’s law takes effect January 1, 2026.

Third-party deliveries can complicate tax compliance. While delivery platforms like DoorDash are essentially marketplaces, most state marketplace facilitator laws weren’t written with them in mind. Marketplace laws don’t always specify which business, the seller (restaurant) or the delivery provider, is responsible for collecting the tax due.

Sales tax can be over- or collected even if the law is clear. For example, a restaurant set up to charge sales tax on dine-in or pick-up orders may accidentally apply sales tax to third-party delivery orders, and the delivery app may also collect the tax.

Automating sales tax collection can help ensure orders coming through a third-party delivery app are identified as nontaxable in areas where delivery apps are required to collect sales tax. Learn about automating tax collection with Avalara AvaTax. 

More than 30 states, including Florida and Texas, have made alcohol-to-go states permanent as of August 2025. California, Illinois, New Jersey, and New York allow alcohol to go temporarily, but the laws are set to expire.

How do alcohol-to-go laws affect sales tax and compliance requirements?

Alcohol-to-go laws can complicate tax compliance, especially when third-party delivery apps are used. For example, if both the seller and the delivery app’s systems are set up to collect tax, the consumer may be charged sales tax twice on the same transaction. 

Are delivery apps or restaurants responsible for collecting sales tax on alcohol-to-go orders?

Some state marketplace facilitator laws require third-party delivery apps to collect the sales tax; some states don’t require delivery apps to charge tax on third-party orders. Automating tax compliance can help businesses avoid the risk of over- or undercollecting sales tax.

This blog post was originally published July 20, 2021.