Can there be more tax applied to food & drink on your cruise?
Cruise Drink Packages: Do Taxes Still Apply?
Do Cruise Drink Packages Include Taxes? Here’s What You
Need to Know
You’ve booked the dream cruise, upgraded to the fancy drink package, and you’re ready to sip your way across the seas to the ports of your itinerary dreams.
Unlimited margaritas, bottomless cappuccinos, endless glasses of wine… sounds perfect, right? But here’s the catch: that shiny “all-inclusive” package isn’t always completely tax-free. Depending on where your ship is, you might still see a little extra charge on your account.
Let’s break it down in plain English.
The Margarita Tax: U.S. Edition
When you’re cruising in the U.S., drink packages don’t automatically shield you from state sales tax. That’s because:
- Docked in a U.S. port (Miami, Galveston, New Orleans, etc.), or
- Sailing within 3 nautical miles of U.S. shores
Sales tax applies per drink. And the rates? They vary:
- Florida: about 6–7%
- Texas: higher than Florida
- Other states: each sets its own rate
So yes, even if your piña colada is “covered,” you might still see a small tax line added to your onboard account.
VAT Happens: Cruising in Europe
In Europe, it’s the same idea, but instead of sales tax it’s VAT (Value Added Tax).
- In port or EU waters (Barcelona, Rome, Marseille) → VAT applies per drink.
- Once you hit international waters → VAT vanishes.
Rates depend on the country:
- Spain: 10%
- Italy: 10% on food, 22% on alcohol
- France: around 10%
Side-by-Side Snapshot
Region In Port / Territorial Waters At Sea (International Waters)
U.S. State sales tax per drink (varies by state) No tax, package fully included
EU VAT per drink (varies by country) No tax, package fully included
Real Cruise Line Examples
Cruise Line U.S. Waters Ports EU Waters Ports International Waters
Royal Caribbean Sales. tax per drink VAT per drink All included, no tax
Carnival (Cheers!) Sales tax per drink N/A All included, no tax
NCL (More at Sea) 20% service charge upfront + All included, no tax sales tax per drink VAT per drink
MSC Cruises Sales tax per drink (U.S. sailings) All Included, no tax
VAT per drink
Celebrity Cruises Same as Royal (sales tax in U.S.) All included, no tax VAT per drink ,
Does this apply to all citizens from all Countries
It really does. It doesn’t matter if you’re American, Canadian, British, Australian, or from anywhere else — the tax is based on where the ship is, not your nationality. If you’re in Miami, you pay Florida sales tax. If you’re in Rome, you pay Italian VAT.
FAQs
Do cruise drink packages include taxes?
No. Taxes are still applied per drink when the ship is in port or territorial waters.
Do I pay VAT on food and beverages on a cruise in Europe? (if purchased outside the normal cruise fare food ie speciality etc)
Yes, while in EU waters or ports. Once in international waters, no VAT applies.
Does sales tax apply to cruise drink packages in U.S. ports?
Yes. State sales tax applies per drink, even if you have a prepaid package.
Are gratuities the same as taxes?
No. Gratuities (usually 18–20%) are added by the cruise line, while taxes are government-imposed and separate.
Final Sip of the tax glass
A cruise drink package is still amazing value and way less hassle than signing for every glass of wine. Just remember: when you’re near land, a little “margarita tax” might sneak onto your bill.
Out at sea though? That’s when your package really shines — sip away, guilt-free.
