TTB Newsletter for April 17, 2026

Carbonation does more than shape the sensory profile of a cider or perry product-it directly affects how the product must be labeled and taxed under federal law.

Key Carbonation Thresholds

Any cider or perry product that contains more than 0.392 grams of CO₂ per 100 mL is either sparkling or carbonated, depending on how the CO₂ was introduced. Although the Hard Cider tax class was expanded in 2017 to allow up to 0.64 grams of CO₂ per 100 mL, the effervescent threshold of 0.392 grams per 100 mL did not change.

To qualify for the Hard Cider tax rate, a product may contain no more than 0.64 grams of CO₂ per 100 mL (among additional requirements). This expanded limit means that some sparkling or carbonated products may still qualify for the Hard Cider rate if their CO₂ levels do not exceed this threshold.

Sparkling vs. Carbonated

If CO₂ exceeds 0.392 g/100 mL, the product must be designated based on the source of effervescence:

• Sparkling cider/perry: CO₂ results solely from secondary fermentation in a closed container, tank, or bottle.
• Carbonated cider/perry: CO₂ is introduced through artificial injection.

Correct designation is a mandatory labeling requirement for all effervescent products, regardless of whether the product qualifies for the Hard Cider tax rate.

Tax Class Based on CO₂ Levels

Because these tax classes have widely different rates-from 22.6 cents per wine gallon for hard cider to over $3.40 for sparkling wine-the correct CO₂ measurement is essential!

Tips to Keep in Mind

• Test carbonation levels throughout production and prior to removal to ensure the product remains within the allowable thresholds-- a small difference can change both labeling and tax class!
• Ensure the correct sparkling or carbonated designation is used on the label when CO₂ exceeds 0.392 g/100 mL.
• Confirm whether carbonation levels remain within the 0.64 g/100 mL limit for the Hard Cider tax class.
• Keep accurate records to support labeling and tax determinations.

When filing and paying taxes, keep in mind that sparkling and artificially carbonated ciders/perries are taxed at different rates when not qualifying for the Hard Cider tax class.