- Tennessee, Alaska and Hawaii are among states with the highest taxes on beer in 2025, a Tax Foundation analysis finds.
- Wyoming, Missouri and Wisconsin are among states with the lowest taxes on beer.
- Some states have cut or raised taxes on beer in 2025.
Vacationers in the U.S. may find a beer costs more in some states because of varying taxes.
Taxes on beer ranged from as little as $0.019 per gallon in Wyoming to as much as $1.287 per gallon in Tennessee in 2025, according to an analysis by Tax Foundation.
"Taxes are the single most expensive ingredient in beer," Tax Foundation said.
Beer taxes can involve multiple layers of taxes, including for production and retail sales, at the federal, state and local level.
In total, taxes on beer can be as high as nearly 41% of the retail price, Tax Foundation said.
Tennessee had the highest effective tax on beer, with $1.287 per gallon, followed by Alaska ($1.07 a gallon), Hawaii ($0.93 a gallon), Kentucky ($0.891 a gallon) and District of Columbia ($0.79 a gallon) in the rest of the top five.
On the other hand, Wyoming had the lowest effective tax on beer, with $0.019 a gallon, followed by Missouri ($0.06 a gallon), Wisconsin ($0.065 a gallon), Pennsylvania ($0.08 a gallon) and Colorado ($0.08 a gallon) in the rest of the bottom five.
Recent changes in beer taxes
Tax Foundation said the following states have cut or increased taxes on beer in 2025:
- Connecticut reduced the tax rate on beer from $0.24 per gallon to $0.19 per gallon.
- Kentucky reduced the tax rate on beer from $0.93 per gallon to $0.89 per gallon.
- Arkansas increased the tax rate on beer from $0.35 per gallon to $0.38 per gallon.
- North Dakota increased the tax rate on beer from $0.40 per gallon to $0.43 per gallon.
- Utah increased the tax rate on beer from $0.41 per gallon to $0.43 per gallon.
Generally, alcohol taxes in the U.S. remain complex since they tax beer, wine and liquor differently, Tax Foundation said.
"Beer exists within a complex taxation and regulatory landscape," Tax Foundation said. "Modernizing the arcane categorical system by instead taxing according to actual alcohol content would make the broader alcohol tax system simpler and more neutral."