Beer taxes in Wisconsin and surrounding states

By the numbers

The “single most expensive ingredient” in a bottle of beer in the U.S., according to an analysis from a brewers’ trade group, is also the most bitter: taxes. 

Refreshingly, Wisconsin has one of the lowest beer taxes in the country, according to a study published by the Tax Foundation earlier this month. The home of Brew City tied with Missouri, another state well known for its beer exports, at just 6 cents in excise taxes per gallon of beer.

The only state with a lower rate was Wyoming, at a mere 2 cents per gallon.

Among Wisconsin’s immediate neighbors, Minnesota taxes beer at nearly eight times Wisconsin’s rate, at 47 cents per gallon. The Illinois tax is about four times as large as Wisconsin’s, at 23 cents per gallon.

Nationally, the states with the highest tax rates are Tennessee, with a whopping $1.29 per gallon in excise tax, followed by Alaska, Kentucky, Hawaii and South Carolina. If counted among the states, the District of Columbia would take the fifth spot instead.

On the opposite side of the scale, after Wyoming, Missouri and Wisconsin, the next lowest tax rates are found in Colorado, Pennsylvania and Oregon, each at 8 cents per gallon. 

When it comes to distilled spirits, Wisconsin is also among the 10 lowest states, with an excise tax of $3.25 per gallon.

The underlying numbers