Federal excise tax on 5,000 barrels of beer
For a domestic brewer making 2,000,000 barrels a year or less, removing 5,000 barrels taxpaid in one calendar year comes to $17,500.00 of federal excise tax: 5,000 x $3.50 = $17,500.00. Change the figures below to test your own year.
| Barrels removed taxpaid | 5,000 bbl |
| at $3.50/bbl | 5,000 bbl |
| Federal excise tax | $17,500.00 |
| Effective rate per barrel | $3.50 |
| Per US gallon | $0.1129 |
| Per case of 24 x 12 oz | $0.254 |
| Per 16 oz pint | $0.0141 |
| If this is the whole year | $17,500.00 |
| Filing frequency at that annual tax | quarterly |
Runs in your browser; nothing you type is sent anywhere. Arithmetic for your records, not tax advice.
The arithmetic
All 5,000 barrels fall inside the first 60,000 of the calendar year, so every barrel is at $3.50. 55,000 barrels of reduced-rate room remain in the year. The next barrel removed costs $3.50.
$17,500.00 a year is above the $1,000 annual-filing line (about 285.71 barrels at the reduced rate) and not more than $50,000, so on the thresholds below this falls in quarterly filing. Quarterly filing holds at the reduced rate up to about 14,285.71 barrels a year.
If removals were spread evenly over the year
| Quarter | Barrels removed | Barrels so far this year | Tax for the quarter | Rate |
|---|---|---|---|---|
| Q1 | 1,250 | 1,250 | $4,375.00 | all at $3.50 |
| Q2 | 1,250 | 2,500 | $4,375.00 | all at $3.50 |
| Q3 | 1,250 | 3,750 | $4,375.00 | all at $3.50 |
| Q4 | 1,250 | 5,000 | $4,375.00 | all at $3.50 |
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.
5,000 barrels in other units
| Measure | Amount | Tax per unit |
|---|---|---|
| US gallons | 155,000 | $0.1129 |
| 1/2 bbl kegs | 10,000 | $1.75 |
| 1/6 bbl kegs | 30,000 | $0.5833 |
| Cases, 24 x 12 oz | 68,889 | $0.254 |
| 16 oz pints | 1,240,000 | $0.0141 |
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 5,000 barrels of beer?
At the reduced rates for a domestic brewer making 2,000,000 barrels a year or less, 5,000 barrels removed taxpaid in one calendar year comes to $17,500.00 (5,000 x $3.50 = $17,500.00). That averages $3.50 a barrel.
What is the tax per gallon and per case on 5,000 barrels?
$0.1129 per US gallon and $0.254 per case of 24 x 12 oz cans, on average across the year.
How often would a brewer owing $17,500.00 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), $17,500.00 a year falls in quarterly filing. Check TTB's guidance before you file.