Big Sky Times

State taxation on beer in Montana amounts to 14 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 11th lowest 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

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

Source: Tax Foundation