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 7, 2019

How High Are Cigarette Taxes in Your State?

April 10, 2019

Cigarette Taxes and Cigarette Smuggling by State, 2015

November 6, 2017

Cigarette Taxes and Cigarette Smuggling by State, 2014

January 17, 2017

Vapor Products and Tax Policy

March 22, 2016

How Many Cigarettes Are Smuggled Into Your State Each Year?

February 9, 2015


Related Articles

How Stable is Cigarette Tax Revenue?

May 7, 2019

Testimony to the Joint Session of the Nebraska Revenue, Education, and Retirement Committees

April 29, 2019

Colorado Bill Would Put Vapor and Cigarette Tax Increases on November Ballot

April 26, 2019

Minnesota Considers $1.35 Billion Biennial Tax Increase

April 23, 2019

Recapping the 2019 Arkansas Tax Reform

April 11, 2019

How High Are Cigarette Taxes in Your State?

April 10, 2019

Income Tax Credits Paired with Numerous Tax Increases in Wisconsin Gov. Evers’ Budget

March 21, 2019

Washington’s Vapor Tax Proposal Would Discourage Alternatives to Smoking

March 13, 2019

Utah Contemplates 86 Percent Tax on E-Cigarettes

March 7, 2019

New Mexico Tax Increase Package Advances

March 7, 2019

Results of 2018 State and Local Tax Ballot Initiatives

November 6, 2018

South Dakota Voters Will Decide Initiated Measure 25 on November 6th

October 29, 2018

Montana Initiative 185 Mixes Medicaid Funding with Unstable Tax Revenue

September 27, 2018

State Tax Changes Taking Effect July 1, 2018

June 26, 2018

States Taxing Sports Betting: Lessons From Other Revenue Streams

May 23, 2018

D.C. Council Forwards Hefty Cigarette Tax Increase

May 15, 2018

Increasing the Cigarette Tax to Fund Road Maintenance in Mississippi? Not So Fast.

May 1, 2018

Kentucky Legislature Overrides Governor’s Veto to Pass Tax Reform Package

April 16, 2018

Vapor Taxes by State, 2018

March 28, 2018

Kentucky Needs Tax Reform, Not Cigarette Tax Hikes

February 28, 2018