States Where Drinkers Pay the Highest Beer Taxes

What's Hot


5 Reasons to Shop for a Home in DecemberFamily

Shoppers Boycott Businesses Selling Trump-Branded ProductsBusiness

15 Things You Should Always Buy at a Dollar StoreMore

Giving Thanks: Why Foreigners Find America AmazingAround The House

New Email Phishing Scam Targets Amazon ShoppersMore

50 Best Gifts Under $25 for Everyone on Your ListFamily

Why Washing Your Turkey Can Make You IllFamily

Pay $2 and Get Unlimited Wendy’s Frosty Treats in 2017Family

The 7 Worst Things to Buy at a Dollar StoreMore

What the Richest 1 Percent Earns in Every StateFamily

10 Ways to Retire Earlier Than Friends on the Same SalaryGrow

The 10 Best Ways to Blow Your MoneyCredit & Debt

The 50 Hottest Toys of the Past 50 YearsFamily

30 Awesome Things to Do in RetirementCollege

Tennessee residents pay the highest state beer tax rate in the nation, while Wyoming residents pay the lowest. Where does your state rank?

Tennessee residents pay the highest state beer tax rate in the nation — $1.29 per gallon.

That’s well over twice the highest state gasoline tax rates, according to recent analyses from the Tax Foundation, a nonprofit research group.

Beer taxes vary widely across the nation, though. For example, in Wyoming, which has the lowest beer tax rate, residents pay a mere 2 cents per gallon in taxes.

The Tax Foundation reports that wide range is due to the variety of formulas that state and local governments use to tax beer. They can include:

  • Fixed per-volume taxes
  • Wholesale taxes (which are often a percentage of a product’s wholesale price)
  • Distributor taxes (which are sometimes structured as license fees as a percentage of revenues)
  • Case or bottle fees (which can vary based on container size)
  • Additional sales taxes (which are in excess of the general sales tax rate)

Gas taxes also vary, though only from a high of 50.4 cents per gallon in Pennsylvania to a low of 12.25 cents in Hawaii, with the federal gas tax adding 18.4 cents to those amounts.

The states with the biggest beer taxes are:

  • Tennessee: $1.29 per gallon
  • Alaska: $1.07
  • Alabama: $1.05
  • Georgia: $1.01
  • Hawaii: $0.93

The states with the lowest beer taxes are:

  • Wyoming: $0.02 per gallon
  • Missouri, Wisconsin (tie): $0.06
  • Colorado, Oregon, Pennsylvania (three-way tie): $0.08
  • Massachusetts: $0.11
  • Indiana, New Jersey, Rhode Island (three-way tie): $0.12

For help keeping your tab down, check out “5 Tips to Save on Beer.”

What’s your take on alcohol taxes? Do they affect your purchase decisions? Share your thoughts with us by dropping a comment below or on our Facebook page.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: 6 Painless Ways to Pay Off Your Mortgage Years Earlier

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,695 more deals!