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.

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Changes Over Time for Beer
Jurisdiction Date Range 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
Arkansas (480)
1/1/2003 - 6/30/2007 $0.24      3.00%  3.00%8 Citations
Arkansas (469)
7/1/2007 - 1/1/2019 $0.24      1.00%  1.00%11 Citations
Connecticut (484)

Connecticut imposes a tax of $6.00 per barrel, defined as “not less than twenty-eight nor more than thirty-one gallons,” and $0.20 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 $0.20 per gallon.

1/1/2003 - 5/3/2011 $0.20          2 Citations
Connecticut (419)

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.

5/4/2011 - 1/1/2019 $0.24          3 Citations
Delaware (486)
1/1/2003 - 8/31/2017 $0.16          2 Citations
Delaware (421)
9/1/2017 - 1/1/2019 $0.26          3 Citations
District of Columbia (485)
1/1/2003 - 9/30/2009 $0.09 10.00%Yes5.75%4.25% 9.00%Yes5.75%3.25%4 Citations
District of Columbia (420)
10/1/2009 - 6/30/2011 $0.09 10.00%Yes6.00%4.00% 9.00%Yes6.00%3.00%5 Citations
District of Columbia (470)
7/1/2011 - 9/30/2013 $0.09 10.00%Yes6.00%4.00% 10.00%Yes6.00%4.00%6 Citations
District of Columbia (471)
10/1/2013 - 10/29/2018 $0.09 10.00%Yes5.75%4.25% 10.00%Yes5.75%4.25%6 Citations
District of Columbia (4106)
10/30/2018 - 1/1/2019 $0.09 10.00%Yes6.00%4.00% 10.25%Yes6.00%4.25%7 Citations
Illinois (492)
1/1/2003 - 8/31/2009 $0.19          2 Citations
Illinois (426)
9/1/2009 - 1/1/2019 $0.23          5 Citations
Kansas (494)

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.

1/1/2003 - 6/30/2010 $0.188.00%10.00%Yes5.30%4.70% 8.00%Yes5.30%2.70%9 Citations
Kansas (428)

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.

7/1/2010 - 6/30/2013 $0.188.00%10.00%Yes6.30%3.70% 8.00%Yes6.30%1.70%10 Citations
Kansas (472)

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.

7/1/2013 - 6/30/2015 $0.188.00%10.00%Yes6.15%3.85% 8.00%Yes6.15%1.85%10 Citations
Kansas (473)

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.

7/1/2015 - 1/1/2019 $0.188.00%10.00%Yes6.50%3.50% 8.00%Yes6.50%1.50%10 Citations
Kentucky (495)
1/1/2003 - 5/31/2005 $0.089.00%    9.00%    6 Citations
Kentucky (429)
6/1/2005 - 6/30/2015 $0.0811.00%    11.00%    7 Citations
Kentucky (474)
7/1/2015 - 5/31/2016 $0.0810.75%    10.75%    7 Citations
Kentucky (475)
6/1/2016 - 5/31/2017 $0.0810.50%    10.50%    7 Citations
Kentucky (476)
6/1/2017 - 5/31/2018 $0.0810.25%    10.25%    7 Citations
Kentucky (4110)
6/1/2018 - 1/1/2019 $0.0810.00%    10.00%    7 Citations
Louisiana (496)
1/1/2003 - 3/31/2016 $0.32          2 Citations
Louisiana (430)
4/1/2016 - 1/1/2019 $0.40          3 Citations
Maine (499)
1/1/2003 - 9/30/2013 $0.35 7.00%Yes5.00%2.00%     5 Citations
Maine (431)
10/1/2013 - 1/1/2019 $0.35 8.00%Yes5.50%2.50%     5 Citations
Maryland (498)

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).

1/1/2003 - 6/30/2011 $0.09          2 Citations
Maryland (432)

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).

7/1/2011 - 1/1/2019 $0.09 9.00%Yes6.00%3.00% 9.00%Yes6.00%3.00%5 Citations
Minnesota (501)

With respect to malt liquor containing 4 percent alcohol or less, the 9% 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. For other sales of malt liquor containing 4 percent alcohol or less, the 6.5% Sales Tax Rate would apply.

1/1/2003 - 12/31/2005 $0.15 9.00%Yes6.50%2.50% 9.00%Yes6.50%2.50%

$0.08 per gallon for beverages containing an alcohol content of 4% or less.

4 Citations
Minnesota (434)

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.

1/1/2006 - 1/1/2019 $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
Nebraska (507)
1/1/2003 - 6/30/2003 $0.23          1 Citations
Nebraska (438)
7/1/2003 - 1/1/2019 $0.31          5 Citations
Nevada (511)
1/1/2003 - 7/31/2003 $0.09          3 Citations
Nevada (439)
8/1/2003 - 1/1/2019 $0.16          4 Citations
New York (512)
1/1/2003 - 8/31/2003 $0.13          1 Citations
New York (467)
9/1/2003 - 4/30/2009 $0.11          3 Citations
New York (443)
5/1/2009 - 1/1/2019 $0.14          3 Citations
North Carolina (505)
1/1/2003 - 8/31/2009 $0.53          3 Citations
North Carolina (444)
9/1/2009 - 1/1/2019 $0.62          4 Citations
Oklahoma (447)
1/1/2003 - 9/30/2018 $0.40          1 Citations
Oklahoma (4144)
10/1/2018 - 1/1/2019 $0.40 13.50%  13.50%     4 Citations
Rhode Island (517)
1/1/2003 - 6/30/2013 $0.10          1 Citations
Rhode Island (450)
7/1/2013 - 1/1/2019 $0.11          3 Citations
Tennessee (520)
1/1/2003 - 6/30/2013 $0.1417.00%    17.00%    10 Citations
Tennessee (452)
7/1/2013 - 1/1/2019 $1.29          11 Citations
Texas (521)

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.

1/1/2003 - 12/31/2013 $0.19 14.00%Yes6.25%7.75%     

$0.20 per gallon for alcohol content of more than 5%.

9 Citations
Texas (453)

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.

1/1/2014 - 1/1/2019 $0.19 14.95%Yes6.25%8.70%     

$0.20 per gallon for alcohol content of more than 5%.

14 Citations
Vermont (524)
1/1/2003 - 9/30/2003 $0.27 10.00%Yes5.00%5.00%     7 Citations
Vermont (455)
10/1/2003 - 1/1/2019 $0.27 10.00%Yes6.00%4.00%     8 Citations
Washington (525)

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.

1/1/2003 - 12/7/2011Yes           
Washington (457)

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.

12/8/2011 - 1/1/2019 $0.76          4 Citations