These states have the highest beer taxes
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Cracking open a couple of beers this Fourth of July weekend? The taxes on those brewskies could depend on where you live.
By the numbers: Tennessee (about $1.29 per gallon), Alaska ($1.07) and Hawai'i ($0.93) have the highest overall state taxes on beer.
- Wyoming ($0.02), Missouri ($0.06) and Wisconsin ($0.07) have the lowest.
How it works: That's per an analysis by the Tax Foundation, a Washington, D.C.-based think tank.
- The group calculated total state taxes imposed on off-premises sales of 4.7% ABV beer in 12 oz. containers imported from outside the state.
Between the lines: Some states tax beer differently based on its strength, the size of the container, where it's purchased, and other factors.
- Using a standardized unit allows for better cross-state comparisons.
Context: There's a separate federal tax on beer ranging from about $0.11 per gallon on small U.S. brewers' initial output to about $0.58 per gallon on foreign-made suds, the group notes.
- Some localities also impose their taxes on beer.
What they're saying: Federal and state beer taxes "are often levied on the manufacturer, wholesaler, or retailer," write the Tax Foundation's Jacob Macumber-Rosin and Adam Hoffer, with the tax burden "baked into the final retail price."
- "The tax burden accounts for more of the final price of beer than labor and materials combined," the pair add.
The bottom line: Your tallboys may be taxed more than you realize.
