Quick answer: TABC penalties run along a scale. The lighter end includes warnings and civil penalties (fines); the heavier end includes license suspensions and, ultimately, cancellation. Two different figures often get confused: for regulatory violations the base penalty is $250, $500, or $1,000 (a starting point per violation), while a suspension is valued at a separate rate of $150 to $25,000 per day. The exact outcome depends on the violation type, the license involved, and the business’s history.
The penalty scale, from lightest to heaviest
| Level | What it is | When it tends to apply |
|---|---|---|
| Warning / educational | Notice or PACE enrollment, no fine | First-time, unintentional regulatory violations |
| Civil penalty (fine) | A monetary payment, sometimes in lieu of suspension | Many regulatory and some public safety violations |
| Suspension | License paused for a set number of consecutive days | More serious or repeat violations |
| Cancellation | License terminated | The most serious cases or repeated failures |
How fines are calculated
For regulatory violations, TABC starts from a base penalty of $250, $500, or $1,000 (16 TAC §34.10), assigned by the violation’s severity and the type of permit or license. That base is then augmented or discounted based on the number of violations and the circumstances, following TABC’s Penalty Policy in effect on the date of the violation.
When a penalty is expressed through suspension, TABC assesses a dollar figure between $150 and $25,000 per day of suspension. The per-day amount must fit the nature and seriousness of the violation.
Suspension vs. paying instead
A business assessed a suspension may be offered the option to pay a civil penalty in lieu of suspension under §11.64 of the Code. This lets a business keep operating while resolving the matter financially. The option is discretionary; TABC is not required to offer it, and for some violations it will not.
The number of suspension days is not arbitrary. Section 11.61 is the broader grounds provision: it authorizes TABC to suspend a license for up to 60 days or to cancel it for a range of reasons. Certain violations carry their own scales set elsewhere in the Code (for example, sales to minors under §106.13 follow a separate 90-day, six-month, and twelve-month structure). For public safety violations, each sanction other than cancellation can also include an optional monetary penalty of $300 per day of suspension.
The economic-benefit add-on
For a business with a prior violation, TABC may also add the economic benefit it realized from a violation, on top of the calculated penalty. In practice, this recoups the money gained through the violative conduct, so that a fine does not simply become an acceptable cost of breaking the rules. The concept came from the agency’s Sunset review and a 2019 change to the Code (§11.641), and is now part of how penalties are determined.
What pushes a penalty toward cancellation
Cancellation is the end of the scale. It becomes more likely with the most serious public safety violations and with a record of repeated violations despite earlier sanctions. TABC retains authority to suspend or cancel a license under several Code provisions, including §11.61 and §61.71, and the listed penalty charts do not limit that authority.
In practice
Consider a convenience store assessed a short suspension for a first public safety violation. Closing the doors for those days would cost real revenue, so TABC offers a civil penalty in lieu of suspension under §11.64. The store pays the penalty and stays open. Had the violation been more serious, or part of a pattern, that option might not have been on the table, and the suspension, or even cancellation, would stand.
FAQ
What is the smallest TABC penalty?
A warning or, for an eligible first-time unintentional regulatory violation, enrollment in the PACE educational program with no fine.
How large can a TABC fine be?
For regulatory violations, the fine starts from a base of $250, $500, or $1,000 per violation and is then adjusted up or down for history and circumstances. A separate figure applies when the penalty takes the form of a suspension: each suspension day is valued between $150 and $25,000, sized to the seriousness of the conduct rather than being a typical fine amount. The two are different mechanisms, which is why a single dollar ceiling does not capture TABC’s penalties.
Can I pay instead of closing for a suspension?
Sometimes. TABC may offer a civil penalty in lieu of suspension under §11.64, but it is discretionary and not available for every violation.
Can a single violation cost a license?
For the most serious public safety violations, yes. Cancellation is also more likely after repeated violations.
Current as of June 2026. This article is general educational information, not legal advice. Penalty amounts and rules change; verify current figures in 16 TAC Chapter 34 and the Texas Alcoholic Beverage Code, and consult a qualified Texas attorney about your specific situation.