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SPF Indiana

Planning Toolbox

Alcohol Taxation
There has been no increase in Indiana alcohol tax rates since 19811—the state remains at $0.115, $2.68, and $0.47 per gallon for beer, liquor, and wine, respectively.2 Alcohol is now relatively more affordable for consumers than it was several decades ago.8 While there have been several attempts to raise this rate, none have been successful, and Indiana is ranked 42 out of the 50 states in terms of alcohol tax rate.3 Low alcohol taxation rates have long been the subject of research aimed at determining the relationship between the price of alcohol, alcohol consumption and related harms. There is currently strong evidence showing that increased alcohol price can reduce levels of consumption and negative health outcomes resulting from over-consumption, including alcohol-related morbidity and mortality, traffic fatalities, and other factors such as violence and sexually transmitted disease.6 Based on the weight of this and additional available evidence, the Task Force on Community Preventive Services concludes that the price of alcohol per unit should be raised in order to curb excess consumption and alcohol-related harms.