Highest To Lowest Beer Taxes By State – 2024

It’s been estimated that almost 40 percent of the retail price you pay for beer goes to state and federal taxes…

States levy different levels of taxes on beer. And according to data compiled by the Tax Foundation those taxes can range from a meager two cents per gallon in Wyoming, to a hefty $1.29 per gallon in Tennessee.

Beer taxes fall into the realm of what is commonly described as sin taxes…Taxes levied on activities that a society judge’s unfavorably and it appears that drinking beer is one of those activities….

And sometimes the taxation rationale defies reason…

According to the Tax Foundation “Sixteen states have beer excise tax rates that vary based on alcohol content, place of production, size of container, or place purchased. For example, in Idaho, beer containing more than 4 percent ABV is considered “strong beer” and is taxed like wine at $0.45 per gallon. In Virginia, the per-bottle rate varies for bottles that exceed 7- and 12-ounce thresholds.”

Bottom line: In the US taxation is the most expensive part of any beer!

So in an effort to help you better plan your next beercation, here are the beer excise tax rates (Dollars per gallon) for every state in the union as of January 2024…

State Beer Excise Tax