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Tax Planning

10 States With the Lowest Beer Taxes

State taxes on beer vary significantly in the U.S. Which states generate the most revenue on every six-pack sold?


State taxes on beer vary significantly in the U.S. -- Tennessee's top rate of $1.29 per gallon is more than 64 times higher than in Wyoming, where the levy is only $0.02 (and dates back to the end of prohibition). Such taxes are added to the the federal beer tax of $0.58 per gallon, of course.

Beer being portable, this leads to cross-border shopping by some consumers. States with lower beer taxes, such as Indiana and Delaware, see considerable purchases from high-tax neighbors such as Kentucky and Maryland, respectively. In some states, however, it may be illegal -- a form of bootlegging -- to return with beer purchased out-of-state.

In the map below, we call out the 10 states with the lowest beer taxes. Also check out 10 States With the Highest Beer Taxes. And visit the Kiplinger Tax Map for full state tax profiles to discover how much each state taxes beer, gas, property, income and more.

SOURCES: State tax departments, the Tax Foundation, and the Distilled Spirits Council of the United States.

* Based on off-premise sales of 4.7%-by-volume beer in 12-ounce containers. Local excise taxes are excluded.