Cigarette and Tobacco Taxes

The nation’s first federal cigarette tax was enacted in 1864 as a Civil War revenue measure. In 2005 the federal cigarette tax stood at 37 cents per pack. The nation’s first state-level cigarette excise tax was enacted in Iowa in 1921. By 1969 all 50 U.S. states had followed suit. In 2005 state-level cigarette taxes ranged from 7 cents per pack in South Carolina to $2.46 per pack in Rhode Island. The wide variety of state cigarette excise taxes provides opportunities for consumers to shop for bargains across borders—and for smugglers to make substantial profits.

Related Articles

New FDA Regs Shake Up E-Cigarette, Cigar Markets

Looking Back on Louisiana’s Special Session with Some Distance

How High Are Cigarette Taxes in Your State?

MAP: Has Your State Proposed or Enacted a Vapor Excise Tax?

New Study on Electronic Cigarettes Released Today

Vapor Products and Tax Policy

Louisiana Nearing Big Decisions on Taxes, Tax Foundation Testifies

Higher Cigarette Taxes in California?

Ohio Budget in the Home Stretch

Ohio Senate Mulling Tax Changes, Good and Bad

Tennessee Rep Indicted on Cigarette Tax Stamp Scheme

Louisiana Budget Deal Reached

How High Are Cigarette Taxes in Your State?

Alabama Considers Several Tax Increase Plans

Federal Tobacco Tax Revenues are Declining

Ohio House Markedly Improves on Gov. Kasich’s Budget Plan

Marijuana Taxes Not a Panacea for Budgets, Utah Vapor Tax Scrapped, and a Proposed Cigarette Tax in Rhode Island

Suggestions for Improvement in the Ohio FY 2016-17 Budget

Utah Is Eyeing An E-Cigarette Tax, But Its Reasoning Is Faulty

How Many Cigarettes Are Smuggled Into Your State Each Year?