Tax Bites - Beer

56.62%

 

The last thing that you want to think about when you crack open a cold one after a long day of filing your taxes is how much you’re paying in taxes on that very bottle of beer. But it’s significant, at about 56.2 percent of the cost.

The average six pack of beer costs about $4.05. Of that, 22 percent, or 89 cents, goes to state and federal governments in the form of special excise taxes on beer.  But the flow of cash to government doesn’t stop there.  Out of what the consumer pays for beer the beer producer must pay federal income taxes, state income taxes, federal payroll taxes, unemployment insurance taxes, workmen’s compensation taxes, state franchise taxes, local property taxes and any local income taxes.  All told, for each six pack of beer, the government takes a swig of 56.2 percent of the price, or $2.28 per six pack.