How California's beer tax compares to other states
Add Axios as your preferred source to
see more of our stories on Google.
Cracking open some beers this summer? The taxes on those brewskies could depend on where you live.
The big picture: In California, it's on the lower side at $0.20 per gallon, per an analysis by the Washington, D.C.-based think tank Tax Foundation.
- Tennessee (about $1.29 per gallon) and Alaska ($1.07) have the highest overall state taxes on beer, while Wyoming ($0.02) and Missouri have the lowest.
Yes, but: Local taxes also apply.
Zoom in: San Francisco's sales tax is at 8.625%.
The intrigue: 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.
The bottom line: 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."