Kiplinger

10 States with the Lowest Beer Taxes

What's better than beer? Not paying a lot of tax on it. In addition to paying the federal tax of up to $0.58 per gallon*, consumers must face the local excise tax for beer -- typically paid by brewers and distributors before the beer reaches store shelves, but nonetheless impacting the final cost of a cold brew.

State taxes on beer vary significantly in the U.S. -- Tennessee's top rate of $1.29 per gallon is more than 64 times higher than in Wyoming, where the levy is only $0.02 (and dates back to the end of prohibition). Beer being portable, this leads to cross-border shopping by some consumers. States with lower beer taxes, such as Indiana and Delaware, see considerable purchases from high-tax neighbors such as Kentucky and Maryland, respectively. In some states, however, it may be illegal -- a form of bootlegging -- to return with beer purchased out-of-state.

If you want to get a brew that won't

The state doesn't have nearly as many breweries as others on this list, but remember, it's the country's smallest. That said, Proclamation Ale Company in Warwick is doing big things, with more than 70 offerings (though they're not all available all the time). The six-year-old brewery is best known for their Derivative series, a rotating set of single-hopped Pale Ales.

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