Alcohol Beverages Taxes

Beer

Laws specifying the two major types of taxes levied on beer – “specific excise taxes” (taxes levied on the quantity of a beverage) and “ad valorem excise taxes” (taxes levied on the price of a beverage).

Users familiar with the previous APIS analysis of Alcohol Beverages Taxes (2003-2007) are strongly advised to review the information under the "About This Policy" tab and the "Variables” tab. There have been important changes in the ways that variables are defined, the data included and excluded, and the assumptions underlying the APIS analysis of this policy topic.

Policy Topics

View another policy topic by selecting an option from the following menu.

Learn More

View definitions for each of the column headings.

Viewing Policies as of Date

Filter

Sort

Search policies as of this date:
Jurisdiction Policies as of Control Specific Excise Tax Per Gallon for 5% Alcohol Ad Valorem Excise Tax On-Premises for 5% Alcohol Ad Valorem Excise Tax Off-Premises for 5% Alcohol Additional Taxes for 3.2-6% Alcohol Citations
Wholesale Tax Rate Retail Tax Rate Sales Tax DOES NOT Apply Sales Tax Rate Sales Tax Adjusted Retail Ad Valorem Rate Wholesale Tax Rate Retail Tax Rate Sales Tax DOES NOT Apply Sales Tax Rate Sales Tax Adjusted Retail Ad Valorem Rate
AL (Alabama)
1/1/2017 $1.05          3 Citations
AK (Alaska)
1/1/2017 $1.07          2 Citations
AZ (Arizona)
1/1/2017 $0.16          2 Citations
AR (Arkansas)
1/1/2017 $0.24      1.00%  1.00%11 Citations
CA (California)
1/1/2017 $0.20          4 Citations
CO (Colorado)
1/1/2017 $0.08          3 Citations
CT (Connecticut)

Connecticut imposes a tax of $7.20 per barrel, defined as “not less than twenty-eight nor more than thirty-one gallons,” and $0.24 per wine gallon or fraction thereof on quantities less than a quarter barrel. APIS reports the tax rate on 12 oz. bottles and therefore displays the rate as $0.24 per gallon.

1/1/2017 $0.24          3 Citations
DE (Delaware)
1/1/2017 $0.16          2 Citations
DC (District of Columbia)
1/1/2017 $0.09 10.00%Yes5.75%4.25% 10.00%Yes5.75%4.25%6 Citations
FL (Florida)

Florida previously imposed a surcharge of 1.34 cents on each 12 ounces of beer sold at retail for consumption on premises. This surcharge was repealed as of July 1, 2007.

1/1/2017 $0.48          3 Citations
GA (Georgia)

$0.32 per gallon for malt beverages sold in barrels or bulk containers containing not more than 31 gallons, and $0.39 per gallon on barrels or bulk containers of 15.5 gallons or less.

1/1/2017 $1.01          3 Citations
HI (Hawaii)

$0.54 per gallon for containers of 7 gallons or more.

1/1/2017 $0.93          2 Citations
ID (Idaho)
1/1/2017 $0.15          $0.45 per gallon applies to beer over 5% alcohol. Beer with 5% or less alcohol is sold by license. Beer greater than 5% but less than 7.5% alcohol is sold by both license and the state.4 Citations
IL (Illinois)
1/1/2017 $0.23          5 Citations
IN (Indiana)
1/1/2017 $0.12          3 Citations
IA (Iowa)
1/1/2017 $0.19          3 Citations
KS (Kansas)

Sales of beer containing not more than 4 percent alcohol by retailers holding only a cereal malt beverage (CMB) license are subject only to the applicable state and local sales tax. The 10% Liquor Drink Tax is not due on beer containing not more than 4 percent alcohol sold by those holding only a CMB license; however, holders of alcoholic liquor licenses must collect and remit the 10% Liquor Drink Tax on sales of beer containing not more than 4 percent alcohol but are not required to collect sales tax.

1/1/2017 $0.188.00%10.00%Yes6.50%3.50% 8.00%Yes6.50%1.50%10 Citations
KY (Kentucky)
1/1/2017 $0.0810.50%    10.50%    7 Citations
LA (Louisiana)
1/1/2017 $0.40          3 Citations
ME (Maine)
1/1/2017 $0.35 8.00%Yes5.50%2.50%     5 Citations
MD (Maryland)

For the period January 1, 2003 through January 2, 2008, a 5 percent general sales tax applied to alcoholic beverages, and no specific ad valorem tax applied to alcoholic beverages. For the period January 3, 2008 through June 30, 2011, a 6 percent general sales tax applied to alcoholic beverages, and no specific ad valorem tax applied to alcoholic beverages. For the period beginning July 1, 2011 a 9 percent ad valorem tax on alcoholic beverages applies, in lieu of the 6 percent general sales tax. See Md. Ann. Code, Tax - General, § 11-104(a), (g) (as amended by 2007 Md. Laws 1st Sp. Sess. Ch. 6, 2011 Md. Laws 571, and 2011 Md. Laws 572).

1/1/2017 $0.09 9.00%Yes6.00%3.00% 9.00%Yes6.00%3.00%5 Citations
MA (Massachusetts)
1/1/2017 $0.11          2 Citations
MI (Michigan)
1/1/2017 $0.20          2 Citations
MN (Minnesota)

With respect to malt liquor containing 4 percent alcohol or less, the 2.5% Retail Tax is only applied when sold at an on-sale or off-sale municipal liquor store or other establishment licensed to sell any type of intoxicating liquor.

1/1/2017 $0.15 2.50%  2.50% 2.50%  2.50%$0.08 per gallon for beverages containing an alcohol content of 4% or less.7 Citations
MS (Mississippi)
1/1/2017 $0.43          3 Citations
MO (Missouri)
1/1/2017 $0.06          4 Citations
MT (Montana)

Reported tax rate is the rate for brewers who produce more than 20,000 barrels of beer per year.

1/1/2017 $0.14          3 Citations
NE (Nebraska)
1/1/2017 $0.31          5 Citations
NV (Nevada)
1/1/2017 $0.16          4 Citations
NH (New Hampshire)
1/1/2017 $0.30          3 Citations
NJ (New Jersey)
1/1/2017 $0.12          3 Citations
NM (New Mexico)
1/1/2017 $0.41          2 Citations
NY (New York)
1/1/2017 $0.14          3 Citations
NC (North Carolina)
1/1/2017 $0.62          4 Citations
ND (North Dakota)

Beer in bulk containers is taxed at $0.08 per gallon.

1/1/2017 $0.16 7.00%Yes5.00%2.00% 7.00%Yes5.00%2.00%9 Citations
OH (Ohio)
1/1/2017 $0.18          4 Citations
OK (Oklahoma)
1/1/2017 $0.40          2 Citations
OR (Oregon)
1/1/2017 $0.08          2 Citations
PA (Pennsylvania)
1/1/2017 $0.08          5 Citations
RI (Rhode Island)
1/1/2017 $0.11          3 Citations
SC (South Carolina)
1/1/2017 $0.77          5 Citations
SD (South Dakota)
1/1/2017 $0.27          3 Citations
TN (Tennessee)
1/1/2017 $1.29          11 Citations
TX (Texas)

In Texas, holders of a wine and beer retailer's permit or a beer retail dealer's license are subject to the State sales tax rate of 6.25% rather than the Ad Valorem Excise Tax On-Premises rates.

1/1/2017 $0.19 14.95%Yes6.25%8.70%     $0.20 per gallon for alcohol content of more than 5%.14 Citations
UT (Utah)
1/1/2017Yes           No Law
VT (Vermont)
1/1/2017 $0.27 10.00%Yes6.00%4.00%     8 Citations
VA (Virginia)

Virginia imposes a tax of $0.2565 per gallon on each barrel of beer, defined as any container or vessel having a capacity of more than 43 ounces.

1/1/2017 $0.28          2 Citations
WA (Washington)

APIS does not report taxes in States where the index beverage is wholly or partially sold in State-run retail stores or through State-run wholesalers. The tax rate for Washington is reported beginning on December 8, 2011, when privatization began as a result of passage of Initiative 1183.

1/1/2017 $0.76          4 Citations
WV (West Virginia)
1/1/2017 $0.18          3 Citations
WI (Wisconsin)
1/1/2017 $0.06          2 Citations
WY (Wyoming)
1/1/2017 $0.02          2 Citations
US ( United States)
1/1/2017 $0.58          2 Citations