According to the US Surgeon General, increasing the price of cigarettes through strategies such as excise tax increases are an effective policy intervention to prevent initiation of tobacco use, promote cessation, and reduce the prevalence and intensity of tobacco use among adolescents and young adults.1,7CDC found that an increase in excise taxes in Massachusetts, for example, when combined with an antismoking campaign, produced a 19.7% decline in cigarette consumption per capita 4 years after the tax increase was initiated.8 Young people are particularly sensitive to tobacco product price increases and a study by the independent CDC Task Force on Community Preventive Services concluded that increasing the unit price for tobacco products is an effective method for reducing tobacco use among young adults and adolescents.9 The largest impact on cigarette demand for youths is the perceived price of cigarettes.10,11 Increasing excise taxes on tobacco products is especially effective in discouraging initiation among young people who have not developed an addiction to tobacco, thus protecting their health and increasing their likelihood of remaining tobacco-free.12
Top of Page
States’ Activity to Reduce Tobacco Use Through Excise Taxes
Cigarettes
Through December 31, 2023, the state excise tax on cigarettes ranges from $0.170 per pack in Missouri, to $5.350 per pack in New York. The federal tax remains at $1.010 per pack. Four states (Georgia, Missouri, North Carolina, and North Dakota) have an excise tax on cigarettes that is less than $0.500 per pack. Nine states (Alabama, Idaho, Indiana, Mississippi, Nebraska, South Carolina, Tennessee, Virginia, and Wyoming) have an excise tax on cigarettes from $0.500 to $0.999 per pack. Eight states (Arkansas, Florida, Iowa, Kansas, Kentucky, Louisiana, Texas, and West Virginia), the Marshall Islands, and the U.S. Virgin Islands have cigarette excise taxes from $1.000 to $1.499 per pack. Seven states (Colorado, Montana, Nevada, New Hampshire, Ohio, South Dakota, and Utah) have cigarette excise taxes from $1.500 to $1.999 per pack. In 2006, only six states had an excise tax rate of at least $2.000. Twelve states (Alaska, Arizona, California, Delaware, Illinois, Maine, Michigan, New Jersey, New Mexico, Oklahoma, Pennsylvania, and Wisconsin) have a cigarette excise tax from $2.000 to $2.999 per pack. Seven states (Hawaii, Maryland, Massachusetts, Minnesota, Oregon, Vermont, and Washington), and the Northern Mariana Islands have a cigarette excise tax from $3.00 to $3.999 per pack. Two states (Connecticut and Rhode Island) and Guam have a cigarette excise tax of $4.000 or greater. One State (New York), the District of Columbia, Palau and Puerto Rico have a cigarette excise tax of $5.000 or greater; and in American Samoa, the cigarette excise tax is $6.000.
Cigars
As of December 31, 2023, two states (Florida and Pennsylvania), the District of Columbia and Palau do not tax cigars. The remaining states tax cigars either on a per-unit basis or by a percentage of the product price. Five states (Alabama, Arizona, Oklahoma, Texas, and Vermont) American Samoa, Guam and Puerto Rico tax cigars based on a per-unit basis, and vary greatly in range, from $0.011 to $2.000. The other 43 states, the Marshall Islands, the Northern Mariana Islands and the U.S. Virgin Islands tax cigars as a percentage of the product price. Eight states (Arkansas, Connecticut, Iowa, Michigan, New Mexico, Oregon, Rhode Island, and Wisconsin) limit the maximum cigar tax to $0.500 per cigar. In North Carolina, the maximum cigar tax is $0.300 per cigar; and in Washington, the maximum cigar tax is $0.650 per cigar.
Little Cigars
States tax little cigars in one of three ways: defined and taxed separately as “little cigars,” defined as and taxed as “tobacco products,” or defined as and taxed as “cigarettes.” One state (Florida), the Marshall Islands, the Northern Mariana Islands, and Palau do not tax little cigars in any manner. Four states (Alabama, Arizona, Georgia, and Texas) tax little cigars separately with taxes ranging from $0.020 to $0.4405 per pack. Sixteen states (California, Hawaii, Illinois, Iowa, Massachusetts, Minnesota, Nebraska, New Hampshire, New Mexico, New York, Oklahoma, Pennsylvania, Rhode Island, Utah, Vermont, and Washington), American Samoa, the District of Columbia, Guam, and Puerto Rico tax little cigars as cigarettes. The other 29 states and the U.S. Virgin Islands tax little cigars as tobacco products.
Roll-Your-Own-Tobacco
Five states (Alabama, Arizona, Pennsylvania, Texas, and Vermont) American Samoa, Guam and Palau tax roll-your-own tobacco on a per ounce basis ranging from $0.0356 to $8.3380. Two states (North Dakota, and Rhode Island) the Marshall Islands and Puerto Rico do not tax roll-your-own tobacco. The remaining states, the District of Columbia, the Northern Mariana Islands and the U.S. Virgin Islands tax roll-your-own tobacco on a percentage of a specified cost.
Pipe Tobacco
The Marshall Islands and Puerto Rico do not tax pipe tobacco. Four states (Alabama, Arizona, Pennsylvania, and Texas) American Samoa, Guam and Palau tax pipe tobacco on a per ounce basis ranging from $0.0356 to $8.3380. The remaining states, the District of Columbia, the Northern Mariana Islands and the U.S. Virgin Islands tax pipe tobacco on a percentage of a specified cost.
Top of Page
DISCLAIMER:The STATE System contains data synthesized from state-level statutory laws. It does not contain state-level regulations; measures implemented by counties, cities, or other localities; opinions of Attorneys General; or relevant case law decisions for tobacco control topics other than preemption; all of which may vary significantly from the laws reported in the database, fact sheets, and publications.
