The tax on beer in Utah will increase starting July 1, as the tax will again go up by 25 cents, the same amount it has increased in each of the previous two years.
The increase, which makes Utah’s tax $13.85 per 31-gallon barrel, comes from legislation passed by the State Legislature in 2024 that raised taxes on beer from $13.10 per 31-gallon barrel to $14.10 per 31-gallon barrel by July 1, 2027. The bill, HB 548, called for a 25-cent increase each year for four years and will keep the state in its current position as the 12th-highest state for beer taxes in the nation.
Utah’s beer tax is charged at the wholesale level. As a result, final consumers of the product often do not see the tax listed on their receipts because it is built into the price listed on the shelves of grocery and convenience stores.
Utah collects around $18 million in beer tax annually. Brewers, distributors, and wholesalers pay the per-barrel tax once a month to the State Tax Commission. Revenue from the tax is deposited into the state’s General Fund and the Alcoholic Beverage Enforcement and Treatment Restricted Account.
Tennessee has the highest tax in the country, charging $1.287 per gallon for beer. Alaska is second-highest at $1.07 per gallon, and Hawaii comes in third, charging $0.93 per gallon. Wyoming has the lowest tax on beer, with a rate of $0.019 per gallon. Utah’s tax equates to about $0.44 per gallon.