6 Best Budget Tequilas to Use in Margaritas, Palomas, and More

You don't have to splurge to make a really good tequila cocktail — here's proof.

<p>Food & Wine / Janet Maples</p>

Food & Wine / Janet Maples

You should also be drinking Margaritas, Palomas, and other tequila cocktails in the colder months, but something about the arrival of spring makes many of us crave these drinks. Fortunately, there are a lot of delicious bottles available that won’t make your next cocktail feel like an investment.

The downside of tequila’s growing popularity is that there are almost too many options to know what to choose. (That popularity, by the way, has exploded in this country. Between 2003 and 2023, according to the Distilled Spirits Council of the United States, tequila and mezcal sales by volume have risen an eye-watering 294%. The biggest growth has been seen among super-premium brands, but even value tequilas experienced significant gains over that two-decade stretch.)

As the market for tequila has expanded, so have options for consumers who want pricey, more terroir-specific bottles, as well as those who are looking for something inexpensive, tasty, and easy to mix into a cocktail.

Of course, bad tequila will ruin a drink, so you never want to use the cheapest stuff you can find. That said, it’s hard to justify making a Margarita or a Paloma at home with a $100 bottle. Read on to learn about six bottles of blanco tequila that all ring in under $40. As we head into the spring and summer, they’re perfect for perking up your next happy hour.

Batanga Blanco

<p>Food & Wine / Janet Maples</p>

Food & Wine / Janet Maples

From Casa Orendain and crafted from brick-oven-cooked agave, this shows pineapple and citrus pith aromas around a mineral spine, before energetic flavors of pineapple, guava, and peppercorn. The finish, lifted with notes of sweet tarragon and mint, would make for a terrific tequila-based Mojito.

Dulce Vida Blanco

<p>Food & Wine / Janet Maples</p>

Food & Wine / Janet Maples

Certified organic and with a focus on sustainability (methane capture technology, production-waste re-use, etc.), this tequila shows notes of cantaloupe and roasted fennel bulb. It’s a sweeter expression of blanco that nods in the direction of caramelized oranges and baked apples and pears. Mixed with Topo Chico, it’s a lovely base for a Ranch Water.

Espolon Blanco

<p>Food & Wine / Janet Maples</p>

Food & Wine / Janet Maples

This tequila makes a rich, textural Margarita. Pleasantly vegetal aromas are kissed with vanilla and set the stage for a silky palate whose butter and caramelized agave notes are balanced by cracked pepper.

La Caza Blanco

<p>Food & Wine / Janet Maples</p>

Food & Wine / Janet Maples

This bottle is usually over $40, but a quick search online shows that you can find it on sale for under our $40 threshold. It’s a tremendous value if you do, a decidedly savory expression of blanco with scrubby herbs and white peppercorns joined by notes of orange pith and dried flowers, all before a finish that can only be described as saline in the best possible sense. If you haven’t tasted a dirty tequila Martini before, then this is the bottle to do it with.

Pantalones Blanco Orgánico

<p>Food & Wine / Janet Maples</p>

Food & Wine / Janet Maples

Matthew and Camila McConaughey’s entry into the world of agave spirits is a velvety tequila that finds its footing on the sweeter end of the spectrum. Expect warm vanilla, flan, and toasted coconut notes, all joined by guava and honeycomb, which make for a dangerously gulpable tequila Negroni.

Siempre Plata

<p>Food & Wine / Janet Maples</p>

Food & Wine / Janet Maples

This is usually above $40, but some retailers occasionally sell it for less. Snap it up if you see a deal like that: It’s not only a delicious tequila, but it employs several sustainability measures that are notable, including bottles made from recycled glass and labels crafted from hemp and agave fiber. As for the liquid, it’s balanced, savory, subtly herbal, and quietly spiced. Flavors of grilled stone fruit, ripe melons, and pineapple are deeply appealing, and the mineral finish is reminiscent of dried flowers and the air after a thunderstorm. It would be a terrific base for a Spicy Margarita.

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