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

Been Naughty or Nice? The Taxman Knows

Cigarettes and Preschoolers Don’t Go Together

Monday Map: Tobacco Tax Revenue as a Percentage of Total State & Local Tax Revenue

New Study: Tobacco Tax Hikes Associated with Subsequent General Tax Increases, Revenue Shortfalls

Massachusetts to Have Second Highest Cigarette Tax, Rare Tax on Computer Services, Higher Gas Tax

Cigarettes and Preschoolers Don’t Go Together

Massachusetts Rejects Higher Income Tax

Minnesota: Higher Income and Cigarette Tax Making It the Land of 10,000 Taxes?

New York and Oneida Nation Reach Cigarette Tax Agreement

Wednesday Links: Taxes on Hipsters and the IRS Scandal Continues

Funding Growing Programs with Declining or Finite Revenue Sources

President Obama’s New Tax Increases

Monday Map: State Cigarette Tax Rates, 2013

Minnesota Governor Drops Reform Parts of Tax Reform Proposal

Facts & Figures 2013: How Does Your State Compare?

Selected Federal Rates, 2012 – 2013

State Cigarette Excise Tax Rates, 2009-2013

Holy Smokes! Washington Loses $376 Million to Cigarette Tax Evasion in 2012

Minnesota Governor Proposes Poorly-Designed Tax “Reform”

Wyoming Considers 167 Percent Cigarette Tax Hike