Texas alcohol license fees vary by license type and local jurisdiction

The cost of an alcohol license in Texas depends on what you want to sell and where you want to sell it. The state charges different fees for beer and wine licenses versus spirits licenses, and your city or county may add local fees on top of the state amount. A beer and wine retailer license costs less than a spirits license, and on-premise licenses (bars, restaurants) cost differently than off-premise licenses (liquor stores, grocery stores).

Texas does not publish a single statewide price list because local governments set their own fees. The Texas Alcoholic Beverage Commission (TABC) sets the state portion, but your city or county can charge additional local fees that sometimes exceed the state fee itself. You need to contact both your local city or county clerk and the TABC to learn the total cost for your specific location and license type.

Key Takeaways

  • Texas state fees for beer and wine licenses range from around $100 to $300, while spirits licenses cost more, but local fees can double or triple the total.
  • On-premise licenses (bars and restaurants) and off-premise licenses (stores) have different fee structures, and you must know which one you need before pricing.
  • Your city or county sets local fees independently, so two towns 20 miles apart can charge very different amounts for the same license type.
  • The TABC website lists state fees, but you must contact your local government directly to learn what your city or county will charge.

State fees set by the Texas Alcoholic Beverage Commission

The TABC charges a state fee for each license type. For a beer and wine retailer off-premise license (a store that sells beer and wine but not spirits), the state fee is approximately $100 to $150 per year, though this can vary. A spirits retailer off-premise license (a liquor store) costs more—typically in the $200 to $300 range annually. These are the baseline amounts before your local government adds its own fees.

On-premise licenses for bars, restaurants, and clubs follow a different fee schedule. A beer and wine on-premise license (a bar serving only beer and wine) costs less than a spirits on-premise license (a full bar). The TABC also charges different rates depending on whether you are renewing an existing license or obtaining a new one. New licenses sometimes cost more than renewals.

You can view the current TABC fee schedule on the TABC website under their licensing section. The fees listed there are state-only and do not include local fees. Print or save the fee schedule for your license type, because you will need to add your local fees to calculate your total cost.

Local fees charged by your city or county

After you pay the state fee to the TABC, your city or county will charge a separate local fee. This local fee is set by your city council or county commissioners and is not controlled by the state. In some Texas cities, the local fee is small—$50 to $100. In others, especially larger cities, the local fee can be $500, $1,000, or more per year.

Some cities charge the same local fee for all license types, while others charge different amounts for beer and wine versus spirits, or for on-premise versus off-premise. A few cities do not charge a local fee at all, while others charge fees that change based on the size of your business or the neighborhood where you operate.

To find your local fee, contact your city clerk's office or county clerk's office directly. Tell them the type of license you need (beer and wine off-premise, spirits on-premise, etc.) and ask for the current local fee. Ask whether the fee is annual or one-time, and whether it is due when you explore or when you receive the license.

Differences between on-premise and off-premise licenses

An off-premise license allows you to sell alcohol that customers take away—liquor stores, grocery stores, gas stations, and convenience stores. An on-premise license allows you to sell alcohol that customers drink on your property—bars, restaurants, clubs, and hotels. The state and local fees are usually lower for off-premise licenses because they are considered lower-risk operations.

Within each category, beer and wine licenses cost less than spirits licenses. A beer and wine off-premise license is the least expensive option. A spirits on-premise license (a full bar) is typically the most expensive. If you are opening a restaurant and want to serve beer, wine, and spirits, you need a spirits on-premise license, not a beer and wine license.

Additional costs beyond the license fee

The license fee itself is only one cost. You will also pay for a background check, which the TABC requires. Some cities charge a separate fee for a local background check in addition to the state background check. You may also need to pay for a food service license if you are operating a restaurant, and some cities require a separate business license or occupancy permit.

If you are opening a new business location, you may need to pay for a zoning review or conditional use permit, which can cost several hundred dollars depending on your city. Some cities require a public hearing before approving an alcohol license, and you may need to hire a lawyer to represent you at that hearing. These costs are separate from the license fee itself.

How to find the exact cost for your location

Start by identifying your license type. Decide whether you need an off-premise or on-premise license, and whether you will sell beer and wine only or spirits as well. Write down the license type clearly—for example, "beer and wine off-premise retailer" or "spirits on-premise."

Go to the TABC website and find the current fee schedule. Look up your license type and note the state fee. Then contact your city clerk or county clerk and ask for the local fee for that same license type. Add the two numbers together. That is your total annual license fee before any other costs like background checks or permits.

If you are in a city with a local TABC office, you can also call them directly and ask. They often know both the state and local fees and can tell you the total in one call. The TABC main office is in Austin, but many larger cities have local TABC offices that handle applications for that area.

Frequently Asked Questions

Does Texas charge a one-time fee or an annual fee for an alcohol license?

Texas charges an annual fee. You pay the license fee every year when you renew. If you do not renew by the expiration date, your license lapses and you must stop selling alcohol when ready. Some cities allow you to renew online, while others require you to renew in person at the clerk's office.

Can I get a discount if I buy multiple licenses?

No. Each license is priced separately. If you own multiple locations, you pay the full fee for each location. Some cities offer a small discount for renewing early, but this varies by location and you should ask your local clerk.

What happens if I do not pay the license fee on time?

Your license will expire and you cannot legally sell alcohol. The TABC can fine you for selling without a valid license, and your business can be shut down. If you miss the renewal important date, you may have to reapply as a new license rather than renewing, which can cost more and take longer.

Do I have to pay the license fee before I can explore, or after I am approved?

You typically pay the fee when you submit your process to the TABC. Some cities require the local fee to be paid to the city before you explore to the state. Ask your city clerk what order to pay in, because paying in the wrong order can delay your process.

Are there any Texas cities where alcohol licenses are free or very cheap?

A few small Texas cities charge no local fee, which means you only pay the state fee. However, most cities and all major cities charge a local fee. The only way to know is to contact your specific city or county clerk and ask what they charge for your license type.