Beer Tax Basics

This page shows the tax rates for beer, permits that breweries need, information for out-of-state small breweries, and which agencies breweries might need to contact.

Beer tax rate

The tax rate for beer is $0.15 cents per gallon ($4.65 per 31-gallon barrel).

Idaho taxes beer over 5% alcohol by volume (ABV) at the wine tax rate. The rate for beer over 5% ABV is $0.45 cents per gallon ($13.95 per 31-gallon barrel).

Idaho breweries

Breweries and any other businesses that sell beer containing 5% or less ABV at wholesale in Idaho must have a beer tax permit and file beer tax returns.

Those selling beer containing over 5% ABV must have a wine tax permit and file wine tax returns See the Wine Tax section.

Out-of-state small breweries

As an out-of-state small brewery, you can now get a small brewer’s retail license or a wholesaler license from the Alcohol Beverage Control division of the Idaho State Police and sell beer in Idaho if you do all of these:

  • Annually produce fewer than 30,000 total barrels of beer, no matter where you produce them.
  • Maintain a warehouse in Idaho.
  • Distribute your beer using brewery employees and equipment that the brewery owns or controls.
  • Distribute and sell beer that has been unloaded, stored, and maintained for at least one day in an Idaho warehouse that you own and use for your brewery.
  • Get an Idaho beer tax permit and file beer tax returns if you sell beer that’s 5% or less ABV.
  • Get an Idaho wine tax permit and file wine tax returns if you sell beer over 5% ABV. See the Wine Tax section.

Beer tax administration, regulation, and enforcement

  • The Idaho State Tax Commission collects and enforces beer and wine taxes. 
  • The Alcohol Beverage Control Bureau of the Idaho State Police ensures that all establishments selling or producing beer and wine are properly licensed and conform to the law. 
  • The Idaho Department of Health and Welfare regulates safety and sanitation standards for establishments making retail sales of beer and wine in Idaho. 
  • Most counties require a permit from their recorder’s office. 
  • Cities will require a license from their clerk’s office. 
  • The United States Department of the Treasury also regulates alcohol in Idaho.