Business & Economy

Ranking states with the highest and lowest beer taxes

Written by:
Ellen Chang
March 5, 2018
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Ranking states with the highest and lowest beer taxes

Alcohol remains heavily regulated in the US, partially as a legacy of prohibition. This regulation varies from state to state. In addition to the general sales tax, all 50 states impose an additional tax on beer, which is often passed onto consumers.

The taxes levied are an excise tax and come in the form of either a fixed per-volume tariff or a wholesale tax. Distributors are taxed in some states through their sales or by license fees. Other states impose a fee on bottles or cases of beer.  

This list ranks the 50 states and the District of Columbia from the lowest beer excise tax to the highest, ranging from $0.02 per gallon to $1.29. In each ranking, you can also see the number of breweries per capita in 2016 and the consumption per capita in 2015 (most recent data available). 

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#51. Wyoming

Excise tax: $0.02 per gallon 

Breweries per capita: 1.1 (#45 highest) 

Consumption per capita: 1.28 (#14 highest)

#50. Missouri

Excise tax: $0.06 per gallon

Breweries per capita: 1.8 (#33 highest)

Consumption per capita: 1.17 (#21 highest)

#49. Wisconsin

Excise tax: $0.06 per gallon

Breweries per capita: 3.3 (#12 highest)

Consumption per capita: 1.39 (#6 highest)

#48. Kentucky

Excise tax: $0.08 per gallon

Breweries per capita: 1.1 (#44 highest)

Consumption per capita: 0.99 (#39 highest)

#47. Oregon

Excise tax: $0.08 per gallon

Breweries per capita: 8.1 (#4 highest)

Consumption per capita: 1.22 (#18 highest)

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#46. Colorado

Excise tax: $0.08 per gallon

Breweries per capita: 8.4 (#3 highest)

Consumption per capita: 1.12 (#28 highest)

#45. Pennsylvania

Excise tax: $0.08 per gallon

Breweries per capita: 2.2 (#25 highest)

Consumption per capita: 1.31 (#12 highest)

#44. Maryland

Excise tax: $0.09 per gallon

Breweries per capita: 1.5 (#36 highest)

Consumption per capita: 0.85 (#48 highest)

#43. District of Columbia

Excise tax: $0.09 per gallon

Breweries per capita: 2.3 (#22 highest)

Consumption per capita: 1.14 (#25 highest)

#42. Rhode Island

Excise tax: $0.11 per gallon

Breweries per capita: 1.9 (#31 highest)

Consumption per capita: 0.96 (#45 highest)

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#41. Massachussetts

Excise tax: $0.11 per gallon

Breweries per capita: 2.2 (#24 highest)

Consumption per capita: 0.96 (#44 highest)

#40. New Jersey

Excise tax: $0.12 per gallon

Breweries per capita: 1.3 (#43 highest)

Consumption per capita: 0.83 (#50 highest)

#39. Indiana

Excise tax: $0.12 per gallon

Breweries per capita: 2.7 (#19 highest)

Consumption per capita: 0.98 (#41 highest)

#38. Montana

Excise tax: $0.14 per gallon

Breweries per capita: 9 (#2 highest)

Consumption per capita: 1.63 (#2 highest)

#37. New York

Excise tax: $0.14 per gallon

Breweries per capita: 1.9 (#29 highest)

Consumption per capita: 0.9 (#47 highest)

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#36. Idaho

Excise tax: $0.15 per gallon

Breweries per capita: 4.6 (#10 highest)

Consumption per capita: 0.93 (#46 highest)

#35. Minnesota

Excise tax: $0.15 per gallon

Breweries per capita: 2.8 (#16 highest)

Consumption per capita: 1.16 (#24 highest)

#34. Delaware

Excise tax: $0.16 per gallon

Breweries per capita: 2.7 (#18 highest)

Consumption per capita: 1.2 (#20 highest)

#33. Arizona

Excise tax: $0.16 per gallon

Breweries per capita: 1.8 (#32 highest)

Consumption per capita: 1.16 (#23 highest)

#32. North Dakota

Excise tax: $0.16 per gallon

Breweries per capita: 1.9 (#30 highest)

Consumption per capita: 1.57 (#3 highest)

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#31. Nevada

Excise tax: $0.16 per gallon

Breweries per capita: 1.7 (#34 highest)

Consumption per capita: 1.38 (#7 highest)

#30. Kansas

Excise tax: $0.18 per gallon

Breweries per capita: 1.5 (#35 highest)

Consumption per capita: 1.03 (#34 highest)

#29. West Virginia

Excise tax: $0.18 per gallon

Breweries per capita: 1.1 (#46 highest)

Consumption per capita: 1.14 (#26 highest)

#28. Ohio

Excise tax: $0.18 per gallon

Breweries per capita: 2.1 (#26 highest)

Consumption per capita: 1.17 (#22 highest)

#27. Iowa

Excise tax: $0.19 per gallon

Breweries per capita: 3.2 (#13 highest)

Consumption per capita: 1.34 (#9 highest)

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#26. California

Excise tax: $0.20 per gallon

Breweries per capita: 2.2 (#23 highest)

Consumption per capita: 0.99 (#38 highest)

#25. Michigan

Excise tax: $0.20 per gallon

Breweries per capita: 3.1 (#15 highest)

Consumption per capita: 0.99 (#40 highest)

#24. Texas

Excise tax: $0.20 per gallon

Breweries per capita: 1.1 (#45 highest)

Consumption per capita: 1.28 (#14 highest)

#23. Arkansas

Excise tax: $0.23 per gallon

Breweries per capita: 1.3 (#40 highest)

Consumption per capita: 0.97 (#42 highest)

#22. Illinois

Excise tax: $0.23 per gallon

Breweries per capita: 2 (#27 highest)

Consumption per capita: 1.12 (#29 highest)

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#21. Connecticut

Excise tax: $0.24 per gallon

Breweries per capita: 1.9 (#28 highest)

Consumption per capita: 0.84 (#49 highest)

#20. Virginia

Excise tax: $0.26 per gallon

Breweries per capita: 2.7 (#20 highest)

Consumption per capita: 1 (#37 highest)

#19. Washington

Excise tax: $0.26 per gallon

Breweries per capita: 6.3 (#6 highest)

Consumption per capita: 0.97 (#43 highest)

#18. Vermont

Excise tax: $0.27 per gallon

Breweries per capita: 10.8 (#1 highest)

Consumption per capita: 1.57 (#4 highest)

#17. South Dakota

Excise tax: $0.27 per gallon

Breweries per capita: 2.5 (#21 highest)

Consumption per capita: 1.48 (#5 highest)

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#16. New Hampshire

Excise tax: $0.30 per gallon

Breweries per capita: 5.4 (#8 highest)

Consumption per capita: 1.88 (#1 highest)

 

#15. Nebraska

Excise tax: $0.31 per gallon

Breweries per capita: 3.2 (#14 highest)

Consumption per capita: 1.34 (#10 highest)

#14. Georgia

Excise tax: $0.32 per gallon

Breweries per capita: 0.7 (#49 highest)

Consumption per capita: 1.01 (#36 highest)

#13. Maine

Excise tax: $0.35 per gallon

Breweries per capita: 7.6 (#5 highest)

Consumption per capita: 1.37 (#8 highest)

#12. Louisiana

Excise tax: $0.40 per gallon

Breweries per capita: 0.8 (#48 highest)

Consumption per capita: 1.27 (#15 highest)

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#11. Oklahoma

Excise tax: $0.40 per gallon

Breweries per capita: 0.7 (#50 highest)

Consumption per capita: 1.07 (#32 highest)

#10. New Mexico

Excise tax: $0.41 per gallon

Breweries per capita: 3.9 (#11 highest)

Consumption per capita: 1.23 (#17 highest)

#9. Utah

Excise tax: $0.41 per gallon

Breweries per capita: 1.4 (#39 highest)

Consumption per capita: 0.65 (#51 highest)

#8. Mississippi

Excise tax: $0.43 per gallon

Breweries per capita: 0.4 (#51 highest)

Consumption per capita: 1.31 (#11 highest)

#7. Florida

Excise tax: $0.48 per gallon

Breweries per capita: 1.3 (#41 highest)

Consumption per capita: 1.11 (#31 highest)

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#6. Alabama

Excise tax: $0.53 per gallon

Breweries per capita: 0.8 (#47 highest)

Consumption per capita: 1.12 (#27 highest)

#5. North Carolina

Excise tax: $0.62 per gallon

Breweries per capita: 2.8 (#17 highest)

Consumption per capita: 1.05 (#33 highest)

#4. South Carolina

Excise tax: $0.77 per gallon

Breweries per capita: 1.4 (#37 highest)

Consumption per capita: 1.21 (#19 highest)

#3. Hawaii

Excise tax: $0.93 per gallon

Breweries per capita: 1.3 (#42 highest)

Consumption per capita: 1.28 (#13 highest)

#2. Alaska

Excise tax: $1.07 per gallon

Breweries per capita: 6.2 (#7 highest)

Consumption per capita: 1.11 (#30 highest)

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#1. Tennessee

Excise tax: $1.29 per gallon

Breweries per capita: 1.4 (#38 highest)

Consumption per capita: 1.03 (#35 highest)

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