The Tax Foundation says 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. They point out that here in the U.S., taxes are the single most expensive ingredient in beer. This burden accounts for more of the final price of beer than labor & ingredients combined – as much as 40.8% of the retail price.
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 beer 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.
Key changes in 2026
- The tax on beer in Arkansas decreased by 1 cent per gallon to $0.372 per gallon.
- The tax on beer in Utah increased by 0.8 cents per gallon to $0.439 per gallon and is scheduled to increase similarly every July 1 until 2027.
Click here to read the full story at the Tax Foundation.
