Who knew, but roughly 40% of the retail price of beer goes toward the payment of various taxes, making the tax the most expensive ingredient in a six-pack.
In Louisiana, that tax comes out to 40 cents per gallon––on top of the federal excise tax on beer, ranging from 11 cents to 58 cents per gallon based on production, location, and quantity, reports the Tax Foundation, an independent tax policy nonprofit.
Louisiana comes in at 15th on the list. Tennessee is number one, charging $1.29 per gallon. The cheapest is Wyoming, which only taxes 2 cents a gallon.
Unlike general sales taxes, which are tacked on after the price of goods is subtotaled, most states collect beer excise taxes from retailers according to the quantity of beer sold, usually at a rate of dollars per gallon. Vendors, in turn, pass those costs along to consumers in the form of higher prices.
Some states levy taxes further up the supply chain by taxing brewers, importers, or other wholesalers as a percentage of revenue generated or at a fixed price per gallon, bottle, or case of beer sold. Many states also generate revenue by collecting license fees from beer distributors, because beer taxes are often collected at other points in the supply chain, the only tax a consumer will see printed on his or her receipt is any applicable state or local sales tax that applies to the purchase.
The below map shows the state beer excise tax rate in all 50 states and the District of Columbia. Rates vary widely by state. See the full report.
