Federal excise tax on 100,000 barrels of beer
For a domestic brewer making 2,000,000 barrels a year or less, removing 100,000 barrels taxpaid in one calendar year comes to $850,000.00 of federal excise tax: 60,000 x $3.50 = $210,000.00, plus 40,000 x $16.00 = $640,000.00, total $850,000.00. Change the figures below to test your own year.
| Barrels removed taxpaid | 100,000 bbl |
| at $3.50/bbl | 60,000 bbl |
| at $16.00/bbl (over 60,000 this calendar year) | 40,000 bbl |
| Federal excise tax | $850,000.00 |
| Effective rate per barrel | $8.50 |
| Per US gallon | $0.2742 |
| Per case of 24 x 12 oz | $0.6169 |
| Per 16 oz pint | $0.0343 |
| If this is the whole year | $850,000.00 |
| Filing frequency at that annual tax | semimonthly |
Runs in your browser; nothing you type is sent anywhere. Arithmetic for your records, not tax advice.
The arithmetic
The first 60,000 barrels of the calendar year are at $3.50 and the remaining 40,000 at $16.00. The average comes to $8.50 a barrel, but each additional barrel this year costs $16.00.
$850,000.00 a year is above $50,000 (about 14,285.71 barrels at the reduced rate), so on the thresholds below this falls in semimonthly filing: 24 returns a year, averaging $35,416.67 each if removals were even.
If removals were spread evenly over the year
| Quarter | Barrels removed | Barrels so far this year | Tax for the quarter | Rate |
|---|---|---|---|---|
| Q1 | 25,000 | 25,000 | $87,500.00 | all at $3.50 |
| Q2 | 25,000 | 50,000 | $87,500.00 | all at $3.50 |
| Q3 | 25,000 | 75,000 | $275,000.00 | 15,000 bbl at $16.00 |
| Q4 | 25,000 | 100,000 | $400,000.00 | 25,000 bbl at $16.00 |
The reduced tier counts barrels removed in the calendar year, not per return, so a large year pays more per barrel in its later quarters.
100,000 barrels in other units
| Measure | Amount | Tax per unit |
|---|---|---|
| US gallons | 3,100,000 | $0.2742 |
| 1/2 bbl kegs | 200,000 | $4.25 |
| 1/6 bbl kegs | 600,000 | $1.4167 |
| Cases, 24 x 12 oz | 1,377,778 | $0.6169 |
| 16 oz pints | 24,800,000 | $0.0343 |
Other annual volumes
| Barrels a year | Federal excise | Per barrel | Filing frequency |
|---|---|---|---|
| 500 | $1,750.00 | $3.50 | quarterly |
| 1,000 | $3,500.00 | $3.50 | quarterly |
| 2,500 | $8,750.00 | $3.50 | quarterly |
| 5,000 | $17,500.00 | $3.50 | quarterly |
| 7,500 | $26,250.00 | $3.50 | quarterly |
| 10,000 | $35,000.00 | $3.50 | quarterly |
| 15,000 | $52,500.00 | $3.50 | semimonthly |
| 30,000 | $105,000.00 | $3.50 | semimonthly |
| 60,000 | $210,000.00 | $3.50 | semimonthly |
| 100,000 | $850,000.00 | $8.50 | semimonthly |
Where the numbers come from
Rates: $3.50 a barrel on the first 60,000 barrels removed in a calendar year and $16.00 a barrel from 60,001 to 2,000,000, for a domestic brewer producing 2,000,000 barrels a year or less (TTB tax rates). One barrel is 31 US gallons (27 CFR 25.11). Filing frequency follows the expected annual tax: not more than $1,000 may file annually, not more than $50,000 quarterly, above that semimonthly (27 CFR 25.164). Tax is on beer removed taxpaid, not on what you brewed. This page is arithmetic for your records, not tax advice: check TTB's own guidance before you file.
Questions
How much federal excise tax is due on 100,000 barrels of beer?
At the reduced rates for a domestic brewer making 2,000,000 barrels a year or less, 100,000 barrels removed taxpaid in one calendar year comes to $850,000.00 (60,000 x $3.50 = $210,000.00, plus 40,000 x $16.00 = $640,000.00, total $850,000.00). That averages $8.50 a barrel.
What is the tax per gallon and per case on 100,000 barrels?
$0.2742 per US gallon and $0.6169 per case of 24 x 12 oz cans, on average across the year.
How often would a brewer owing $850,000.00 a year file the excise return?
On the thresholds in 27 CFR 25.164 (not more than $1,000 a year may file annually, not more than $50,000 quarterly, otherwise semimonthly), $850,000.00 a year falls in semimonthly filing. Check TTB's guidance before you file.