Maryland Beer Tax: How Much Does It Cost?

Alcoholic beverages in Maryland are subject to excise taxes, which are collected from the merchant and usually passed on to the consumer in the form of raised prices. Beer in Maryland is taxed at $0.09 per gallon, plus Federal excise taxes. Additionally, there is a 9% sales tax on beer in Maryland. This sales tax applies to all alcoholic beverages, including beer, distilled spirits, and wine, as well as mixed drinks containing alcohol. The state of Maryland collects nearly $310 million annually in state taxes on beer, wine, and spirits.

Maryland's beer tax is $0.09 per gallon

In Maryland, beer vendors are responsible for paying a state excise tax of $0.09 per gallon, plus Federal excise taxes, for all beer sold. Excise taxes are applied on a per-unit basis, generally per gallon for liquids, and are collected from the merchant who sells the alcohol. In almost all cases, these excise taxes are passed on to the consumer in the form of raised alcohol prices.

In Maryland, the Revenue Administration Division is responsible for monitoring the manufacture, storage, transportation, sale, and distribution of alcoholic beverages and tobacco. The Division also collects nearly $310 million annually in state taxes on beer, wine, and spirits.

The state's excise tax on beer is separate from Maryland's Sales and Use Tax, which is collected as a percentage of the final purchase price of the sale. On July 1, 2011, the sales and use tax rate on alcoholic beverages changed from 6% to 9%. This 9% rate applies to sales of beer, distilled spirits, and wine, as well as any beverage containing one-half of 1% or more of alcohol by volume.

Maryland also proposes a lower tax category for ready-to-drink cocktails (RTDs), which are defined as beverages containing a distilled spirit mixed with a non-alcoholic beverage, with 12% or less alcohol by volume, and packaged in a metallic container or can of up to 12 ounces. The proposed tax rate for RTDs is $0.40 per gallon, which is the same rate applied to wine.

Excise taxes are paid by the merchant

In Maryland, excise taxes are applied to the sale of beer, wine, and liquor. These excise taxes are paid by the merchant or vendor and are separate from Maryland's sales tax. The state of Maryland collects nearly $310 million annually in excise taxes on beer, wine, and spirits.

Excise taxes are levied on specific goods or services, such as fuel, tobacco, and alcohol. They are primarily paid by businesses, which then often pass the tax on to consumers through higher prices. In Maryland, beer vendors are responsible for paying a state excise tax of $0.09 per gallon, plus Federal excise taxes, for all beer sold. This cost is generally passed on to the consumer in the form of raised alcohol prices.

Excise taxes can be ad valorem (paid by percentage) or specific (a cost charged by unit). In Maryland, excise taxes on alcohol are specific excise taxes, with a set tax rate applied to the sale of each gallon of beer, wine, or liquor.

It is important to note that excise taxes are separate from sales taxes, which are collected from the consumer by the merchant and passed on to the government. Excise taxes, on the other hand, are the responsibility of the merchant to pay to the government, and they may or may not choose to pass this cost on to the consumer.

Federal excise tax is $0.05 per 12-oz can

In Maryland, alcohol excise taxes are levied on wine, beer, and liquor. Excise taxes are applied on a per-unit basis, typically per gallon for liquids, and are collected from the merchant rather than the end consumer. However, these taxes are usually passed on to the consumer in the form of higher alcohol prices.

Federal excise tax rates on beer, as of 2024, are as follows:

• $18.00 per 31-gallon barrel
• $0.05 per 12-oz can
• $1.07 - $3.40 per gallon
• $0.21 - $0.67 per 750ml bottle, depending on alcohol content

The federal government provides tax relief to small brewers, with specific criteria related to production and processing. The Tax Cuts and Jobs Act, passed by Congress in 2017, provided a temporary reduction in federal excise taxes for all brewers and beer importers, which was made permanent at the end of 2020. This change has provided much-needed relief to the industry, allowing brewers and importers to reinvest in their businesses, hire new employees, and innovate.

Beer is tax-exempt up to one quart per trip

In Maryland, beer, wine, and spirits are all subject to excise taxes, which are collected by the Revenue Administration Division. Excise taxes are applied on a per-unit basis, usually per gallon for liquids, and are paid by the merchant, who typically passes the cost on to the consumer in the form of higher prices.

Maryland's excise tax on beer is $0.09 per gallon. Beer is also subject to a 9% sales tax. However, when travelling, you can bring up to one gallon (4 quarts) per trip, and one of those quarts is tax-exempt. The remaining three quarts are taxed. Only two quarts are tax-exempt per calendar month. So, if you're planning a trip to Maryland and want to bring some beer, keep in mind that you can save on taxes by bringing up to a gallon, with one quart exempt from taxation.

It's worth noting that these tax exemptions for travellers apply not only to beer but also to other alcoholic beverages like wine and spirits. So, if you're planning on bringing a variety of alcoholic drinks into Maryland, you can take advantage of these exemptions and save on your taxes.

Additionally, if you're an active member of the military returning to Maryland, there is no limit on the amount of alcohol you can bring into the state, and it is considered a household good. Just make sure to obtain a Change of Domicile Permit.

Beer is also subject to a 9% sales tax

In Maryland, beer is subject to a 9% sales tax. This sales tax is applied to the sale of beer, as well as beer that is included in a mixed drink. The 9% sales tax on beer was implemented on July 1, 2011, replacing the previous 6% rate. It is important to note that this tax is separate from the excise tax, which is also applied to beer.

The 9% sales tax on beer in Maryland is a flat rate, which means that the tax amount is calculated based on the price of the beer. If the taxable price of the beer falls between two whole pennies, the tax is rounded off accordingly. For example, if the taxable price of a beer is $8.24, the tax would be $0.74 (calculated as $8.24 x 9% = $0.742), which would be rounded down to the nearest penny. On the other hand, if the taxable price is $8.29, the tax would be $0.75 ($8.29 x 9% = $0.746), which would be rounded up.

The 9% sales tax applies to all sales of beer within the state of Maryland, including those made by businesses and individuals. It is the responsibility of the beer vendors to collect and remit this tax to the state. The revenue generated from this sales tax contributes to the state's finances, covering the costs of government services, goods, and activities.

Additionally, it is worth noting that there are exemptions from the 9% sales tax for certain organisations listed in the Tax General Article §11-204(b). These organisations are exempt from paying the 9% tax on their alcoholic beverage sales, including beer.

The 9% sales tax on beer in Maryland is a significant component of the state's tax system, and it plays a crucial role in generating revenue for the government. By taxing the sale of beer, the state is able to collect funds that can be utilised for various public services and initiatives. This tax also aligns with the state's approach to taxing alcoholic beverages, ensuring that the costs associated with alcohol consumption are reflected in the prices.

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