Officials say they made the “heavy-hearted” decision because there are too many risks in attracting tourists and allowing crowds to congregate as the number of infections in Germany remains high.
They also wanted to make the decision before preparations started.
But the region’s governor, Markus Soeder, insisted: “Oktoberfest will be held again, and will be big again. “
The festival typically attracts around six million people from all over the world to drink in breweries and huge tents.
But Germany is currently in a lockout that bans large gatherings, prevents people from going out after 10 p.m. and closes businesses and leisure venues in places where cases exceed 100 per 100,000 residents for three consecutive days.
The “emergency brake” legislation, which entered into force last month, also restricts personal contact.
The infection rate in Germany is currently 146.9 new weekly infections per 100,000 population.
In Bavaria, the figure is slightly lower at 145.4 new infections per week per 100,000 population.
The latest daily number of cases in Germany is 9,160 infections and 84 other deaths, bringing the total to 3,425,982 infections and 83,276 coronavirus-related deaths.
Mr Soeder described the decision to end this year’s Oktoberfest as “a huge disgrace to the millions of fans around the world”.
Last year some small parties were allowed to move forward under strict guidelines and it is hoped that similar proposals will be presented this fall.