10 States With the Lowest Beer Taxes

If you want to get a brew that won't strain your wallet, consider pouring up in these 10 states.

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What’s better than beer? Not paying a lot of tax on it. In addition to paying the federal tax of up to $0.58 per gallon,* consumers must face the local excise tax for beer -- typically paid by brewers and distributors before the beer reaches store shelves, but nonetheless impacting the final cost of a cold brew.

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). Beer being portable has led to cross-border shopping by some consumers. In some states, however, it may be illegal -- a form of bootlegging -- to return with beer purchased out-of-state.

If you want to get a brew that won’t strain your wallet, consider drinking in these 10 states with the lowest beer taxes.

*Federal beer taxes are lower for smaller breweries.