Jul 11, 2025 - News

Indiana beer tax among lowest in the U.S.

Illustration of condensation on a glass of beer forming a dollar sign — Illustration: Sarah Grillo/Axios

Cracking open a cold one costs less in Indiana than it does in most of the nation, a new analysis shows.

By the numbers: At about 12 cents per gallon, Indiana has the 7th lowest beer tax in the U.S., according to the Tax Foundation, a Washington, D.C.-based think tank.

Tennessee ($1.29), 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: 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.

How federal taxes factor in

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Indiana beer tax among lowest in the U.S.

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