How High are the Beer Taxes in Your State?


When it comes right down to it, the taxes applied to a good or service ultimately will affect an area’s cost of living and along with it the price of housing.   The folks over at the Tax Foundation remind us that the federal government collects an excise tax on beer (which ranges from $0.11 to $0.58 per gallon based on production, location, and quantity) as well as all 50 states and the District of Columbia.  According to their research, most states charge the retailer directly for the excise tax – versus tacking it on to the bill like sales tax.  However consumers ultimately end of paying those taxes in the form of higher prices.  Indeed….

According to the Beer Institute, “Taxes are the single most expensive ingredient in beer, costing more than the labor and raw materials combined.” Research has shown that approximately 40 percent of the retail price of beer is dedicated toward covering all the applicable taxes.

Click here to read the full report at the Tax Foundation.

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Director of Education & Outreach, National Real Estate Investors Association

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