The Highest And Lowest Beer Taxes By State – 2025

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. Often included in price, you usually don’t see excise taxes listed separately on your receipt, as they are often included in the product’s overall price.

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….

But 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 2025…

State Beer Excise Tax  (Dollars per Gallon)

1. Tennessee: $1.287
2. Alaska: $1.07
3. Hawaii: $0.93
4. Kentucky: $0.91 (adjusted from $0.93 in 2024 due to reported reduction in 2025)
5. New Mexico: $0.77
6. North Carolina: $0.62
7. Georgia: $0.53 (includes statewide local rate of $0.53)
8. Alabama: $0.52 (includes statewide local rate of $0.52)
9. South Carolina: $0.51
10. Florida: $0.48
11. Louisiana: $0.46
12. Arkansas: $0.44 (increased in 2025)
13. North Dakota: $0.43 (increased from $0.40 in 2024)
14. Utah: $0.43 (increased from $0.41 in 2024)
15. Virginia: $0.40
16. Mississippi: $0.39
17. Minnesota: $0.38
18. West Virginia: $0.37
19. Nebraska: $0.36
20. Vermont: $0.35
21. Oklahoma: $0.34
22. Texas: $0.33
23. Nevada: $0.32
24. Connecticut: $0.31 (reduced in 2025)
25. New York: $0.30
26. Maine: $0.29
27. Iowa: $0.28
28. Washington: $0.27
29. Montana: $0.26
30. Illinois: $0.25
31. Arizona: $0.24
32. South Dakota: $0.23
33. California: $0.22
34. Ohio: $0.21
35. Massachusetts: $0.20
36. New Jersey: $0.19
37. Delaware: $0.18
38. Kansas: $0.17
39. Idaho: $0.15 (for beer ≤ 4% ABV; higher for stronger beer)
40. Rhode Island: $0.14
41. New Hampshire: $0.13
42. Maryland: $0.12
43. Michigan: $0.11
44. Indiana: $0.10
45. Oregon: $0.08
46. Colorado: $0.08
47. Pennsylvania: $0.08
48. Wisconsin: $0.065
49. Missouri: $0.06
50. Wyoming: $0.019

Key Points

• Rates are sourced primarily from the Tax Foundation’s 2025 data and cross-referenced with Statista and other sources for accuracy.
• Some states (e.g., Idaho, Virginia) have variable rates based on alcohol content or container size, but the listed rates reflect the standard for 4.7% ABV beer in 12-ounce containers.
• States like Alabama and Georgia include additional statewide local rates, which are factored into the totals above where applicable.
• Recent changes for 2025 include increases in Arkansas, North Dakota, and Utah, and reductions in Connecticut and Kentucky.
• The District of Columbia, not included in the state ranking, has a beer excise tax rate of $0.09 per gallon, which would place it between Pennsylvania and Wisconsin if ranked.
• These rates do not include additional sales taxes or fees (e.g., bottle fees, wholesale taxes) that may apply in some states, as they focus solely on the specific excise tax per gallon.