Beer Taxes by State, 2025

by Jacob Macumber-Rosin, Adam Hoffer, Tax Foundation, June 10, 2025

Particularly as we head into the summer months, many Americans enjoy a cold beer at the end of a long day. However, beer taxes might dampen the vibe.

In the United States, taxes are the single most expensive ingredient in beer. The tax burden accounts for more of the final price of beer than labor and materials combined—the many different layers of applicable taxes combining to total as much as 40.8 percent of the retail price.

The United States levies a federal excise tax on beer that ranges from $0.113 per gallon for the first 60,000 barrels produced by small domestic brewers to $0.581 per gallon for imports. Each of the 50 states and the District of Columbia also levy their own excise taxes on beer, in addition to any applicable state and local sales taxes.

The total tax burden on beer combines traditional ad quantum excise taxes, retail sales taxes specifically levied on alcohol, case and bottle fees, and ad valorem taxes on producers or wholesalers where applicable.

The states that place the highest tax burden on beer are Tennessee at $1.287 per gallon, Alaska at $1.07 per gallon, and Hawaii at $0.93 per gallon. The lowest tax burden is levied in Wyoming at $0.019 per gallon, followed by Missouri at $0.06 per gallon and Wisconsin at $0.065 per gallon.

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