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.


Related Articles

South Dakota Lights Up Revenue Uncertainty with Proposed Tobacco Tax Hike

Minnesota Budget Squabbles Might Spur Lawsuit

How High Are Cigarette Taxes in Your State?

What to Make of the West Virginia Senate’s Ambitious Tax Overhaul Legislation

Cigarette Taxes and Cigarette Smuggling by State, 2014

State Tax Changes Taking Effect July 1, 2016

#TBT to Some Vintage Tax Foundation Research That is Even More Important Today

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?

Vapor Products and Tax Policy

Louisiana Nearing Big Decisions on Taxes, Tax Foundation Testifies

Ohio Senate Mulling Tax Changes, Good and Bad

Alabama Considers Several Tax Increase Plans

Suggestions for Improvement in the Ohio FY 2016-17 Budget

How Many Cigarettes Are Smuggled Into Your State Each Year?

Cigarette Taxes and Cigarette Smuggling by State, 2013

Pennsylvania Considers Taxing Cigarettes to Pay for Property Tax Relief

Tobacco Taxation and Unintended Consequences: U.S. Senate Hearing on Tobacco Taxes Owed, Avoided, and Evaded

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