2009 State Sales, Gasoline, Cigarette, and Alcohol Tax Rates

January 29, 2009

We have updated our State Sales, Gasoline, Cigarette, and Alcohol Tax Rates table for 2009. Some notable changes during 2008:

  • Alaska’s gasoline excise tax of 8 cents per gallon is suspended from September 2008 through August 2009. Alaska Governor Sarah Palin and the Alaska Legislature enacted the gas tax holiday last summer when oil prices reached record highs.
  • Indiana and Iowa each increased their sales tax rates by 1%, to 7% and 6%, respectively.
  • Hawaii continued its incremental cigarette tax increase, with the current rate set at $2.00 per 20-pack. The rate is set to increase every year on Sept. 20, until 2011 when the rate will be $2.60.
  • Massachusetts increased its cigarette excise tax by one dollar, from $1.51 to $2.51, moving it from 13th to third in the ranking of state cigarette tax rates.
  • New York increased its cigarette excise tax from $1.50 to $2.75, causing it to jump from 14th to now being the state with the highest cigarette excise tax. According to the Campaign For Tobacco Free Kids, this is the “single largest state cigarette tax increase ever enacted.”
  • Vermont increased its cigarette excise tax rate from $1.79 to $1.99.
  • DC doubled its cigarette excise tax from $1.00 to $2.00 per pack.

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