Cigarette tax by state ranges from $0.17 per pack in Missouri to $5.35 per pack in New York, and that state excise rate is only one layer of what you actually pay.1Centers for Disease Control and Prevention. STATE System Excise Tax Fact Sheet Every pack sold in the United States also carries a federal excise tax of roughly $1.01, and some cities add their own charge on top. Depending on where you buy, government taxes on a single pack can swing by more than $7.
The Federal Tax on Every Pack
The federal excise tax on small cigarettes (the standard kind, weighing no more than three pounds per thousand) is $50.33 per thousand under 26 U.S.C. ยง 5701.2Office of the Law Revision Counsel. 26 US Code 5701 – Rate of Tax That works out to about $1.0066 on a pack of 20. Large cigarettes, which are heavier and less common, are taxed at $105.69 per thousand. The rate is set by statute and doesn’t move unless Congress changes it.
Manufacturers and importers pay this tax before the cigarettes enter distribution, and the Alcohol and Tobacco Tax and Trade Bureau (TTB) collects it.3Federal Register. Alcohol and Tobacco Tax and Trade Bureau Because the tax is baked in at the production level, every pack in the country carries it regardless of state.
State Excise Rates: Highest and Lowest
The real variation is at the state level. Each legislature sets its own rate, and the gap is enormous.1Centers for Disease Control and Prevention. STATE System Excise Tax Fact Sheet The state tax alone on a pack in New York is more than 31 times higher than in Missouri.
Several northeastern jurisdictions cluster near the top:
- New York: $5.35 per pack
- District of Columbia: $5.03 per pack
- Rhode Island: $4.50 per pack
- Connecticut: $4.35 per pack
Southern and midwestern states tax far less aggressively:
- Missouri: $0.17 per pack
- Georgia: $0.37 per pack
- North Dakota: $0.44 per pack
- Virginia: $0.60 per pack
Low-tax states often see higher smoking rates. Research consistently shows that raising cigarette taxes reduces consumption, especially among younger smokers and lower-income buyers.
Rates change in different ways. Some states raise them through ordinary legislation. Others use voter initiatives; California added $2.00 per pack through a 2016 ballot measure. A handful build in inflation adjustments so the rate keeps pace without a new vote each cycle.
Local Cigarette Taxes on Top of the State Rate
In some places a city or county stacks its own tax on top of what the state charges. New York City adds $1.50 per pack. Combined with the $5.35 state rate and the $1.01 federal tax, a smoker in Manhattan pays close to $7.86 in excise taxes alone before the base price and sales tax. Chicago imposes $1.18 per pack at the city level, and Cook County adds another charge on top of that.
Not every city has this authority. Many states have preemption laws that block local governments from enacting tobacco taxes or rules stricter than the state’s.4Centers for Disease Control and Prevention. STATE System Preemption Fact Sheet Where preemption doesn’t apply, cities sometimes reach for a local cigarette tax during budget shortfalls because the rate can be adjusted quickly.
Sales Tax and the Tax-on-Tax Effect
Excise taxes aren’t the only government charge on a pack. Most states also apply their regular retail sales tax, calculated on the retail price. In many states the sales tax base includes the excise tax itself, so you’re paying tax on a tax. Between the federal excise tax, the state excise tax, and sales tax, the government’s share of a pack’s price often exceeds what it cost to manufacture and distribute.
Tribal Lands and Military Bases
State cigarette taxes generally don’t apply to sales between a tribal retailer and a tribal member on reservation land. For sales to non-tribal customers, most states still require the state tax to be collected. Many tribes have entered compacts with state governments to handle this, imposing a charge on sales to non-members roughly equivalent to the state rate.
Military installations offer a separate exception. Tobacco sold at a Post Exchange or Base Exchange is typically exempt from state excise taxes. Prices at these facilities are noticeably lower, and the exemption applies only within the physical boundaries of the installation. Buying in bulk on base and reselling off base is a federal offense that can bring criminal tax evasion charges and loss of base privileges.
How E-Cigarettes and Vapor Products Are Taxed
There is no federal excise tax on e-cigarettes or vaping products. At the state level, 34 states and the District of Columbia impose their own excise taxes on vapor products. The methods differ: some states charge a percentage of the wholesale or retail price, others tax by the volume of liquid or number of cartridges, and a few use a split system with different rates for refillable devices versus disposable pods. This part of tobacco taxation is still evolving, with new or increased vapor taxes considered in state legislatures each session.
Buying Across State Lines or Online
Driving to a lower-tax state to stock up is one of the oldest workarounds, and federal law treats it seriously once volumes climb. The Contraband Cigarette Trafficking Act defines “contraband cigarettes” as any quantity exceeding 10,000 cigarettes (50 cartons) without evidence of state or local tax payment.5Office of the Law Revision Counsel. 18 US Code 2341 – Definitions Knowingly trafficking contraband cigarettes carries up to five years in federal prison.6Office of the Law Revision Counsel. 18 US Code 2344 – Penalties
State rules are often stricter. Many states cap how many packs or cartons a person can bring in from another state for personal use, and going over that limit creates a presumption of intent to resell. State penalties commonly include seizure of unstamped product, civil fines reaching tens of thousands of dollars, and felony charges for large volumes.
Online ordering has been largely closed off. The Prevent All Cigarette Trafficking Act (PACT Act) bans mailing cigarettes, smokeless tobacco, and electronic nicotine delivery systems through the United States Postal Service.7Bureau of Alcohol, Tobacco, Firearms and Explosives. Prevent All Cigarette Trafficking (PACT) Act FedEx has a blanket policy against shipping tobacco, and UPS only accepts shipments from licensed, authorized tobacco shippers.8U.S. Customs and Border Protection. Mailing Tobacco Products to the United States Through the Postal Service and Other Carrier Services
Sellers who do ship legally must register with ATF and with the tobacco tax administrator of every state they ship into, file monthly reports on all shipments, verify the buyer’s age, and comply with the destination state’s tax and licensing laws. The older Jenkins Act already required sellers to report interstate cigarette shipments to state tax administrators, with buyer names and addresses. Between the two laws, there’s no realistic way to buy cigarettes online and avoid paying your home state’s tax.
Even if untaxed cigarettes reach you, you technically owe a “use tax” to your state, which mirrors the sales tax you would have paid at home. Few individuals report it voluntarily, but PACT Act reporting gives states the data to send a bill.