Center for State Tax Policy

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.


Featured Research

How Stable is Cigarette Tax Revenue?

May 10, 2017

Cigarette Taxes and Cigarette Smuggling by State, 2014

January 17, 2017

How High Are Cigarette Taxes in Your State?

March 28, 2016

Vapor Products and Tax Policy

March 22, 2016

How Many Cigarettes Are Smuggled Into Your State Each Year?

February 9, 2015


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