1:30pm

Tue October 22, 2013
Alcohol

Colorado Has 4th Lowest Booze Taxes

Credit Nathan Heffel / KUNC

The debate over taxing marijuana is at the forefront in many Coloradans minds - but do you know what rate our booze is taxed at?

NerdWallet compared the “tax rates on 3 different types of alcoholic beverages (beer, wine and spirits) and compared those numbers with the total consumption of each beverage type in each state.” Putting the 2 together, they generated a composite score for each state and ranked them from least to most expensive.

Top 5 States with lowest taxes on booze

1. Wyoming

Our neighbor to the north grabs the number one spot. According to NerdWallet,

"in Wyoming all alcohol sales are controlled through the state (making it a ‘control state’), and tax rates on booze are rock-bottom with just 0.2¢ per beer and a negative effective tax rate on spirits due to significant pricing controls."

2. Missouri

Missouri boasts the second lowest taxes on alcohol in the country. They didn't even enact prohibition, and there are no state-wide open container laws. NerdWallet adds

"With beer (0.6¢), wine (1.6) and spirits (2.3¢) all clocking in at less than half a nickel of state taxes per   drink, Missouri is a great place to kick back and enjoy your favorite adult beverage of choice."

3. New Hampshire

Credit Steamboat Wine Festival

All alcohol sales in New Hampshire are regulated by the state (like Wyoming) which also boasts no income tax. State tax rates of just 2.8¢ per beer make enjoying the leaves this time of year just that little bit better.

4. Colorado

We’re known as the gateway to the Rockies and home to the Coors brewing company. There's also that small gathering known as the Great American Beerfest. Historically though Colorado has had a permissive stance on alcohol including the 4th lowest state tax rate on booze and a history that includes legalizing alcohol in the midst of prohibition.

Says NerdWallet, "At less than a cent in states taxes for a beer (and just 1.3¢ and 2.7¢ for wine and liquor, respectively), residents can easily enjoy the state’s full range of microbreweries without breaking the bank."

5. Vermont

Another control state rounding out our list, Vermont may surprise you. It has the highest number of microbreweries per capita in the nation. According to NerdWallet,

"With beer and wine topping out at around 2.5¢ and 2.1¢ per drink respectively, it’s also one of the cheapest places to enjoy a cold brew."

Take a look at the full list here to see how other states stack up.