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Wednesday, February 19, 2020

Kentucky places tax of 87 cents per gallon on beer

Taxes

By Michael Carroll | Dec 13, 2019

Beer
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State taxation on beer in Kentucky amounts to 87 cents per gallon, according to an analysis from the Tax Foundation based on January 2019 data.

The state’s effective excise tax on a gallon of beer ranks sixth highest among the 50 states, the Tax Foundation reported. That amount is on top of a federal rate of 11 to 58 cents per gallon that’s based on both location and quantity.

Most beer taxes are usually applied before the products hit store shelves, according to the foundation. Because the taxes are often placed at the brewer and wholesaler level, consumers don’t usually see all the taxes levied, with the exception of a general sales tax or alcohol-specific sales tax, the analysis said.

About 40 percent of the retail price of beer goes to taxation, according to the foundation.

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Beer Excise Taxes by State

RankStateBeer Excise Tax per Gallon
1Tennessee$1.29
2Alaska$1.07
3Alabama$1.05
4Georgia$1.01
5Hawaii$0.93
6Kentucky$0.87
7South Carolina$0.77
8North Carolina$0.62
9Maryland$0.54
10Minnesota$0.49
11Florida$0.48
12Mississippi$0.43
13North Dakota$0.42
14Utah$0.41
15New Mexico$0.41
16Louisiana$0.40
16Oklahoma$0.40
18Maine$0.35
19Arkansas$0.34
20Nebraska$0.31
21New Hampshire$0.30
22South Dakota$0.27
23Vermont$0.23
24Delaware$0.26
25Washington$0.26
26Virginia$0.26
27Connecticut$0.23
28Illinois$0.23
29Michigan$0.20
30California$0.20
31Texas$0.20
32Iowa$0.19
33Kansas$0.18
34Ohio$0.18
35West Virginia$0.18
36Arizona$0.16
36Nevada$0.16
38Idaho$0.15
39New York$0.14
40Montana$0.14
41Rhode Island$0.12
42New Jersey$0.12
43Indiana$0.12
44Massachusetts$0.11
45Oregon$0.08
46Colorado$0.08
46Pennsylvania$0.08
48Wisconsin$0.06
49Missouri$0.06
50Wyoming$0.02
Source: Tax Foundation

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