Illinois Has the Cheapest Beer in the U.S.—Here’s Why

If you’re looking for the cheapest beer in America, head to Illinois. A new study reveals that Illinois boasts the lowest price for a 24-pack of Bud Light or Miller Lite, averaging just $16.43 per case. On the other end of the spectrum, beer lovers in Alaska are paying nearly double that price, with a case costing $33.62.

The Land of Lincoln Offers the Lowest Beer Prices

An alcohol delivery company conducted the study by sourcing data from wholesalers in urban and rural ZIP codes nationwide. Their findings highlight the vast price differences across the U.S., influenced by factors such as distribution costs, market competition, and taxes.

Why Is Beer So Expensive in Some States?

Alaska and Wyoming top the list of the most expensive beer markets, with prices soaring to $34 and $29 per case, respectively. But why?

• Geography & Distribution: Remote states with sparse populations face higher transportation costs, making it more expensive to get beer onto store shelves.
• Limited Competition: Fewer retailers mean less price competition, allowing suppliers to charge more.
• Higher Taxes: States like Tennessee and Alaska impose steep excise taxes, which drive up the final cost for consumers.

Where Does Your State Rank?

Here’s a look at the top 10 most and least expensive states for beer:
Most Expensive States for Beer (Per Case):

1. Alaska – $33.62
2. Wyoming – $28.78
3. Hawaii – $24.17
4. Montana – $24.06
5. Tennessee – $24.03

Least Expensive States for Beer (Per Case):

1. Illinois – $16.43
2. South Carolina – $16.54
3. New York – $16.72
4. Rhode Island – $17.26
5. North Carolina – $17.30

The study suggests that states with higher populations and greater competition enjoy lower beer prices, while those with challenging distribution logistics and higher taxes pay a premium.

How Taxes Impact Beer Prices Nationwide

Beer is taxed in every state, unlike wine and spirits, which often receive tax exemptions in certain regions. These taxes—collected at the manufacturer, wholesaler, and retailer levels—are baked into the final retail price.

• Excise Taxes: Some states charge higher excise taxes per gallon, significantly raising beer prices.
• Federal Taxes: The federal government also taxes beer, with rates ranging from $0.11 to $0.58 per gallon, depending on alcohol content.
• Tax Burden on Consumers: According to the Tax Foundation, taxes account for nearly 40% of the total beer cost.

If you’re in Illinois, raise a toast—you’ve got the best beer deal in the nation.