Tennessee has the highest beer tax rate in the US – The Courier

Jon Styf
The central square

Tennessee has the highest beer tax rate in the nation, according to a new report from the Tax Foundation.
Tennessee’s rate is $1.29 per gallon, one of only two states that charge more than $1 per gallon in the country. Alaska charges $1.07.
In the fiscal year that just ended in late July, Tennessee collected more than $19 million in beer taxes, or $1.6 million more than expected. The previous year, it collected $18.7 million in beer tax.
Tennessee also has a mixed drink, or alcohol-to-drink, tax that resulted in $189.8 million in taxes last year, nearly $60 million more than the state budget. In the prior fiscal year, ending July 2021, Tennessee collected $115.8 million in taxes on mixed drinks.
In July alone, by adjusting consumer spending in June, Tennessee collected nearly $1.8 million in beer taxes and more than $17 million in mixed drink taxes.
Hawaii (93 cents), Kentucky (89 cents), South Carolina (77 cents), and North Carolina (62 cents) have the highest state beer tax rates. State rates were based on a 4.7% alcohol by volume beer in a 12-ounce container.
Wyoming has the lowest state beer tax (2 cents), followed by Missouri (6 cents).
The federal beer tax ranges from 11 to 58 cents per gallon depending on production, location, and quantity.

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