5 States with the Highest Alcohol and Beer Tax

4. Alabama

Excise Tax Rate on Distilled Spirits: $21.69 per gallon 

Excise Tax Rate on Beer: $0.53 per gallon

Alabama is one of the many states with strict laws related to virtually all aspects of alcohol. That includes manufacturing, distributing, selling, and even consuming. In Alabama, just 16% of adults reported excessive drinking, which is less than the national average of 19%. 

Alabama collected more than $272 million in taxes from alcohol sales in 2021, or roughly $54 per person. The state’s tax revenue from alcohol is utilized to fund various public services, including healthcare programs, education, and substance abuse prevention initiatives.