Cigarette taxes in the United States
Encyclopedia
In the United States cigarettes are tax
ed at both the federal and state levels, in addition to any state and local sales taxes and local cigarette-specific taxes. Cigarette taxation has appeared throughout American history and still presents itself prominently today. Overall public health
officials are in favor of the tax hike because it ultimately leads to decreased smoking rates. Tobacco companies criticize the increase when in actuality they have been steadily increasing prices independent of taxes.
early on in its history. In 1794, secretary of the treasury Alexander Hamilton
introduced the first ever, federal excise tax on tobacco products. Hamilton’s original proposal passed after major modifications, only to be repealed shortly thereafter with an insignificant effect on the federal budget. Even though Hamilton’s tax on tobacco failed, tobacco taxation continued to play an important role in American history.
On July 1, 1862, the United States Congress
passed excise taxes on many items including tobacco. This occurred as a result of the Union army’s increasing debt during the American Civil War
and the Federal government’s need for additional revenue. After the war, many of these excise taxes were repealed but the tax on tobacco remained. In fact, by 1868 the Government’s main source of income came from these lingering tobacco taxes.
Despite the excise tax of the Federal government, states did not ratify a tobacco excise tax until well into the 20th century. In 1921, Iowa became the first state to pass a tobacco excise tax at the state level in addition to the federal tax. Other states quickly followed suit, and by 1950, 40 states and Washington D.C. enacted taxes on cigarette sales.
Since at 1969, all U.S. states, the District of Columbia and the territories have cigarette taxes. In addition, several cities such as Chicago
and New York City
have implemented their own citywide cigarette tax. New York City has a citywide tax of $1.50, making the combined state and local rate $5.85, the highest in the nation. Missouri
's rate is the lowest, at 17 cents.
Even though this bill taxed smokers in order to fund a children’s health program, President Barack Obama
received both criticism and support for signing this act.
One of the biggest critiques of the passing of this bill comes from economists who believe that an increase in the federal cigarette tax will lead to decreased funding for state programs that rely on their own state cigarette taxes. Critics doubt that states can economically withstand a decrease in this sort of revenue because of a federal tax increase. The logic is such: According to Nobel prize winning economist Gary Becker
, who has studied the long-run price elasticity of cigarettes, the tax increase as a result of the Children’s Health Insurance Program Reauthorization Act increases the price of cigarettes 13.3% which ultimately means a 10.6% decrease in unit sales. The National Tax Foundation calculates these numbers to determine a predicted $1 billion loss for states. In addition, opponents of this bill attack it as regressive saying that the tax increase unfairly targets the poor because according to the Centers for Disease Control and Prevention
(CDC) more than half of all smokers are low income.
Supporters of the tax increase counterpoint this argument by pointing out that lower-income communities already suffer from tobacco related illnesses at a disproportionately higher rater than their higher-income counterparts. They claim that tobacco-related diseases are already regressive, and that the tax increase is trying to decrease these rates of disease among lower income smokers by encouraging them to quit.
Further criticism rests on the belief that the own-price elasticity of demand for cigarettes is quite low. The amount of cigarettes purchased will remain reasonably unchanged, while smokers purchase less food, clothing, shelter and other necessities. This is a particularly important issue for those earning low incomes.
Cigarette tax increases have also resulted in an increase in cigarette smuggling
. In response, the U.S. Congress overwhelmingly passed a bill to strengthen enforcement against cigarette smugglers. Entitled the Prevent All Cigarette Trafficking Act (The PACT Act), the measure targets organizations that sell tax-free cigarettes, improves enforcement toward cigarette smuggling between states, and bans the United States Postal Service
from delivering most tobacco products. President Barack Obama
signed the bill into law on March 31, 2010. Most of the new provisions went into effect on June 29, 2010.
officials support cigarette tax increases is because many studies show that this leads to a decrease in smoking rates. The relationship between smoking rates and cigarette taxes is in fact very elastic
; the greater the amount of the tax increase the greater the proportion of smokers who stop smoking. This is especially prevalent amongst teenagers. For every ten percent increase in the price of a pack of cigarettes, youth smoking
rates overall drop about seven percent. This rate is also true amongst minorities and low income population smokers. Many states can testify to these statistics because the rates of calls to quitting hot-lines are directly related to cigarette tax hikes. When Wisconsin raised its state cigarette tax to $1.00 per pack, the hot-line received a record of 20,000 calls in a two month time period versus its typical 9,000 calls annually. Some critics point to an overall anti-tobacco sentiment as the reason for a decrease in smoking rates. However, an analysis of smoking and cigarette tax rates in 1955 through 1964, prior to the Surgeon General
’s first report and general antismoking sentiment, show the same relationship between tax increases and declining smoking rates that are prevalent today.
, Reynolds American
, and Lorillard have all increased their prices by almost $1.00 per pack on their own. Phillip Morris currently lists all taxes, including federal, state, local, and sales taxes, as 56.6% of the total cost of a pack of cigarettes
, cigar
s and pipe tobacco, are also common in the United States. Forty-nine states and the District of Columbia have such a non-cigarette tax(es), Pennsylvania being the sole exception, having no smokeless or cigar tax at all (though it considers small cigars to be cigarettes for taxation purposes). Of the 49 states that do impose in this category, Florida does not tax cigars, though all other tobacco products are taxed. The U.S. federal government charges different non-cigarette excise taxes, according to the following 6 categories: snuff, chewing tobacco, pipe tobacco, roll-your-own
, large cigars, and small cigars. Cigarette papers and tubes are also taxed.
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
ed at both the federal and state levels, in addition to any state and local sales taxes and local cigarette-specific taxes. Cigarette taxation has appeared throughout American history and still presents itself prominently today. Overall public health
Public health
Public health is "the science and art of preventing disease, prolonging life and promoting health through the organized efforts and informed choices of society, organizations, public and private, communities and individuals" . It is concerned with threats to health based on population health...
officials are in favor of the tax hike because it ultimately leads to decreased smoking rates. Tobacco companies criticize the increase when in actuality they have been steadily increasing prices independent of taxes.
History
Although cigarettes were not popular in the United States until the mid-19th century, the federal government still attempted to implement a tax on tobacco products such as snuffSnuff
Snuff is a product made from ground or pulverised tobacco leaves. It is an example of smokeless tobacco. It originated in the Americas and was in common use in Europe by the 17th century...
early on in its history. In 1794, secretary of the treasury Alexander Hamilton
Alexander Hamilton
Alexander Hamilton was a Founding Father, soldier, economist, political philosopher, one of America's first constitutional lawyers and the first United States Secretary of the Treasury...
introduced the first ever, federal excise tax on tobacco products. Hamilton’s original proposal passed after major modifications, only to be repealed shortly thereafter with an insignificant effect on the federal budget. Even though Hamilton’s tax on tobacco failed, tobacco taxation continued to play an important role in American history.
On July 1, 1862, the United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
passed excise taxes on many items including tobacco. This occurred as a result of the Union army’s increasing debt during the American Civil War
American Civil War
The American Civil War was a civil war fought in the United States of America. In response to the election of Abraham Lincoln as President of the United States, 11 southern slave states declared their secession from the United States and formed the Confederate States of America ; the other 25...
and the Federal government’s need for additional revenue. After the war, many of these excise taxes were repealed but the tax on tobacco remained. In fact, by 1868 the Government’s main source of income came from these lingering tobacco taxes.
Despite the excise tax of the Federal government, states did not ratify a tobacco excise tax until well into the 20th century. In 1921, Iowa became the first state to pass a tobacco excise tax at the state level in addition to the federal tax. Other states quickly followed suit, and by 1950, 40 states and Washington D.C. enacted taxes on cigarette sales.
Since at 1969, all U.S. states, the District of Columbia and the territories have cigarette taxes. In addition, several cities such as Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
and New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
have implemented their own citywide cigarette tax. New York City has a citywide tax of $1.50, making the combined state and local rate $5.85, the highest in the nation. Missouri
Missouri
Missouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It...
's rate is the lowest, at 17 cents.
Under the Obama Administration
On February 4, 2009, the Children's Health Insurance Program Reauthorization Act of 2009 was signed into law, which raised the federal tax rate for cigarettes on April 1, 2009 from $0.39 per pack to $1.01 per pack. The purpose of the State Children’s Health Insurance Program (SCHIP) is to provide aid for impoverished children. With the increased revenue from tobacco taxes SCHIP can now afford to include families with up to three times the federal poverty level as well as children from high-income families in New York and New Jersey. SCHIP will also be able to cover dental benefits and treatment of mental illnesses where it previously could not. In addition to providing these services for U.S. citizens, SCHIP is also expanded to cover immigrant children and immigrant pregnant women.Even though this bill taxed smokers in order to fund a children’s health program, President Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
received both criticism and support for signing this act.
One of the biggest critiques of the passing of this bill comes from economists who believe that an increase in the federal cigarette tax will lead to decreased funding for state programs that rely on their own state cigarette taxes. Critics doubt that states can economically withstand a decrease in this sort of revenue because of a federal tax increase. The logic is such: According to Nobel prize winning economist Gary Becker
Gary Becker
Gary Stanley Becker is an American economist. He is a professor of economics, sociology at the University of Chicago and a professor at the Booth School of Business. He was awarded the Nobel Memorial Prize in Economic Sciences in 1992, and received the United States' Presidential Medal of Freedom...
, who has studied the long-run price elasticity of cigarettes, the tax increase as a result of the Children’s Health Insurance Program Reauthorization Act increases the price of cigarettes 13.3% which ultimately means a 10.6% decrease in unit sales. The National Tax Foundation calculates these numbers to determine a predicted $1 billion loss for states. In addition, opponents of this bill attack it as regressive saying that the tax increase unfairly targets the poor because according to the Centers for Disease Control and Prevention
Centers for Disease Control and Prevention
The Centers for Disease Control and Prevention are a United States federal agency under the Department of Health and Human Services headquartered in Druid Hills, unincorporated DeKalb County, Georgia, in Greater Atlanta...
(CDC) more than half of all smokers are low income.
Supporters of the tax increase counterpoint this argument by pointing out that lower-income communities already suffer from tobacco related illnesses at a disproportionately higher rater than their higher-income counterparts. They claim that tobacco-related diseases are already regressive, and that the tax increase is trying to decrease these rates of disease among lower income smokers by encouraging them to quit.
Further criticism rests on the belief that the own-price elasticity of demand for cigarettes is quite low. The amount of cigarettes purchased will remain reasonably unchanged, while smokers purchase less food, clothing, shelter and other necessities. This is a particularly important issue for those earning low incomes.
Cigarette tax increases have also resulted in an increase in cigarette smuggling
Smuggling
Smuggling is the clandestine transportation of goods or persons, such as out of a building, into a prison, or across an international border, in violation of applicable laws or other regulations.There are various motivations to smuggle...
. In response, the U.S. Congress overwhelmingly passed a bill to strengthen enforcement against cigarette smugglers. Entitled the Prevent All Cigarette Trafficking Act (The PACT Act), the measure targets organizations that sell tax-free cigarettes, improves enforcement toward cigarette smuggling between states, and bans the United States Postal Service
United States Postal Service
The United States Postal Service is an independent agency of the United States government responsible for providing postal service in the United States...
from delivering most tobacco products. President Barack Obama
Barack Obama
Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
signed the bill into law on March 31, 2010. Most of the new provisions went into effect on June 29, 2010.
Effects on smoking rates
One of the reasons that public healthPublic health
Public health is "the science and art of preventing disease, prolonging life and promoting health through the organized efforts and informed choices of society, organizations, public and private, communities and individuals" . It is concerned with threats to health based on population health...
officials support cigarette tax increases is because many studies show that this leads to a decrease in smoking rates. The relationship between smoking rates and cigarette taxes is in fact very elastic
Elasticity (economics)
In economics, elasticity is the measurement of how changing one economic variable affects others. For example:* "If I lower the price of my product, how much more will I sell?"* "If I raise the price, how much less will I sell?"...
; the greater the amount of the tax increase the greater the proportion of smokers who stop smoking. This is especially prevalent amongst teenagers. For every ten percent increase in the price of a pack of cigarettes, youth smoking
Youth Smoking
Youth smoking is an issue that affects countries worldwide. While not every culture views youth smoking as an issue that needs to be addressed, the U.S. has taken drastic measure in an attempt to reduce and eventually eliminate use of tobacco products among teens...
rates overall drop about seven percent. This rate is also true amongst minorities and low income population smokers. Many states can testify to these statistics because the rates of calls to quitting hot-lines are directly related to cigarette tax hikes. When Wisconsin raised its state cigarette tax to $1.00 per pack, the hot-line received a record of 20,000 calls in a two month time period versus its typical 9,000 calls annually. Some critics point to an overall anti-tobacco sentiment as the reason for a decrease in smoking rates. However, an analysis of smoking and cigarette tax rates in 1955 through 1964, prior to the Surgeon General
Surgeon General of the United States
The Surgeon General of the United States is the operational head of the Public Health Service Commissioned Corps and thus the leading spokesperson on matters of public health in the federal government...
’s first report and general antismoking sentiment, show the same relationship between tax increases and declining smoking rates that are prevalent today.
Proportion of taxes in cigarette prices
Although some believe that taxes constitute a disproportionate percentage of the retail price of cigarettes, data show that while the price of cigarettes has continuously increased since 1965, the percentage of that price going towards taxes is now half of what it was then. While tobacco companies complain about the $1.01 cigarette tax, Phillip MorrisPhilip Morris USA
Philip Morris USA is the United States tobacco division of Altria Group, Inc. Philip Morris USA brands include Marlboro, Virginia Slims, Benson and Hedges, Merit, Parliament, Alpine, Basic, Cambridge, Bucks, Dave's, Chesterfield, Collector's Choice, Commander, English Ovals, Lark, L&M, Players and...
, Reynolds American
Reynolds American
Reynolds American, Inc. is the second-largest tobacco company in the United States. Its holdings include R.J. Reynolds Tobacco Company, American Snuff Company , Santa Fe Natural Tobacco Company and Niconovum AB...
, and Lorillard have all increased their prices by almost $1.00 per pack on their own. Phillip Morris currently lists all taxes, including federal, state, local, and sales taxes, as 56.6% of the total cost of a pack of cigarettes
State cigarette tax rates
The following table lists American state and territory tax rates (as of July 2010).| Excise Tax Per Pack (USD) | State/Territory |
|---|---|
| 0.425 | Alabama Alabama Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland... |
| 2.00 | Alaska Alaska Alaska is the largest state in the United States by area. It is situated in the northwest extremity of the North American continent, with Canada to the east, the Arctic Ocean to the north, and the Pacific Ocean to the west and south, with Russia further west across the Bering Strait... |
| 2.00 | Arizona Arizona Arizona ; is a state located in the southwestern region of the United States. It is also part of the western United States and the mountain west. The capital and largest city is Phoenix... |
| 1.15 | Arkansas Arkansas Arkansas is a state located in the southern region of the United States. Its name is an Algonquian name of the Quapaw Indians. Arkansas shares borders with six states , and its eastern border is largely defined by the Mississippi River... |
| 0.87 | California California California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area... |
| 0.84 | Colorado Colorado Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains... |
| 3.00 | Connecticut Connecticut Connecticut is a state in the New England region of the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and the state of New York to the west and the south .Connecticut is named for the Connecticut River, the major U.S. river that approximately... |
| 1.60 | Delaware Delaware Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. It is bordered to the south and west by Maryland, and to the north by Pennsylvania... |
| 1.339 | Florida Florida Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it... |
| 0.37 | Georgia Georgia (U.S. state) Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788... |
| 2.80 | Hawaii Hawaii Hawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of... |
| 0.57 | Idaho Idaho Idaho is a state in the Rocky Mountain area of the United States. The state's largest city and capital is Boise. Residents are called "Idahoans". Idaho was admitted to the Union on July 3, 1890, as the 43rd state.... |
| 0.98 | Illinois Illinois Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,... |
| 0.995 | Indiana Indiana Indiana is a US state, admitted to the United States as the 19th on December 11, 1816. It is located in the Midwestern United States and Great Lakes Region. With 6,483,802 residents, the state is ranked 15th in population and 16th in population density. Indiana is ranked 38th in land area and is... |
| 1.36 | Iowa Iowa Iowa is a state located in the Midwestern United States, an area often referred to as the "American Heartland". It derives its name from the Ioway people, one of the many American Indian tribes that occupied the state at the time of European exploration. Iowa was a part of the French colony of New... |
| 0.79 | Kansas Kansas Kansas is a US state located in the Midwestern United States. It is named after the Kansas River which flows through it, which in turn was named after the Kansa Native American tribe, which inhabited the area. The tribe's name is often said to mean "people of the wind" or "people of the south... |
| 0.60 | Kentucky Kentucky The Commonwealth of Kentucky is a state located in the East Central United States of America. As classified by the United States Census Bureau, Kentucky is a Southern state, more specifically in the East South Central region. Kentucky is one of four U.S. states constituted as a commonwealth... |
| 0.36 | Louisiana Louisiana Louisiana is a state located in the southern region of the United States of America. Its capital is Baton Rouge and largest city is New Orleans. Louisiana is the only state in the U.S. with political subdivisions termed parishes, which are local governments equivalent to counties... |
| 2.00 | Maine Maine Maine is a state in the New England region of the northeastern United States, bordered by the Atlantic Ocean to the east and south, New Hampshire to the west, and the Canadian provinces of Quebec to the northwest and New Brunswick to the northeast. Maine is both the northernmost and easternmost... |
| 2.00 | Maryland Maryland Maryland is a U.S. state located in the Mid Atlantic region of the United States, bordering Virginia, West Virginia, and the District of Columbia to its south and west; Pennsylvania to its north; and Delaware to its east... |
| 2.51 | Massachusetts Massachusetts The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010... |
| 2.00 | Michigan Michigan Michigan is a U.S. state located in the Great Lakes Region of the United States of America. The name Michigan is the French form of the Ojibwa word mishigamaa, meaning "large water" or "large lake".... |
| 1.56 | Minnesota Minnesota Minnesota is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state... |
| 0.68 | Mississippi Mississippi Mississippi is a U.S. state located in the Southern United States. Jackson is the state capital and largest city. The name of the state derives from the Mississippi River, which flows along its western boundary, whose name comes from the Ojibwe word misi-ziibi... |
| 0.17 | Missouri Missouri Missouri is a US state located in the Midwestern United States, bordered by Iowa, Illinois, Kentucky, Tennessee, Arkansas, Oklahoma, Kansas and Nebraska. With a 2010 population of 5,988,927, Missouri is the 18th most populous state in the nation and the fifth most populous in the Midwest. It... |
| 1.70 | Montana Montana Montana is a state in the Western United States. The western third of Montana contains numerous mountain ranges. Smaller, "island ranges" are found in the central third of the state, for a total of 77 named ranges of the Rocky Mountains. This geographical fact is reflected in the state's name,... |
| 0.64 | Nebraska Nebraska Nebraska is a state on the Great Plains of the Midwestern United States. The state's capital is Lincoln and its largest city is Omaha, on the Missouri River.... |
| 0.80 | Nevada Nevada Nevada is a state in the western, mountain west, and southwestern regions of the United States. With an area of and a population of about 2.7 million, it is the 7th-largest and 35th-most populous state. Over two-thirds of Nevada's people live in the Las Vegas metropolitan area, which contains its... |
| 1.78 | New Hampshire New Hampshire New Hampshire is a state in the New England region of the northeastern United States of America. The state was named after the southern English county of Hampshire. It is bordered by Massachusetts to the south, Vermont to the west, Maine and the Atlantic Ocean to the east, and the Canadian... |
| 2.70 | New Jersey New Jersey New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware... |
| 1.66 | New Mexico New Mexico New Mexico is a state located in the southwest and western regions of the United States. New Mexico is also usually considered one of the Mountain States. With a population density of 16 per square mile, New Mexico is the sixth-most sparsely inhabited U.S... |
| 4.35 | New York New York New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east... |
| 0.45 | North Carolina North Carolina North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte... |
| 0.44 | North Dakota North Dakota North Dakota is a state located in the Midwestern region of the United States of America, along the Canadian border. The state is bordered by Canada to the north, Minnesota to the east, South Dakota to the south and Montana to the west. North Dakota is the 19th-largest state by area in the U.S.... |
| 1.25 | Ohio Ohio Ohio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus... |
| 1.03 | Oklahoma Oklahoma Oklahoma is a state located in the South Central region of the United States of America. With an estimated 3,751,351 residents as of the 2010 census and a land area of 68,667 square miles , Oklahoma is the 28th most populous and 20th-largest state... |
| 1.18 | Oregon Oregon Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern... |
| 1.60 | Pennsylvania Pennsylvania The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to... |
| 3.46 | Rhode Island Rhode Island The state of Rhode Island and Providence Plantations, more commonly referred to as Rhode Island , is a state in the New England region of the United States. It is the smallest U.S. state by area... |
| 0.57 | South Carolina South Carolina South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence... |
| 1.53 | South Dakota South Dakota South Dakota is a state located in the Midwestern region of the United States. It is named after the Lakota and Dakota Sioux American Indian tribes. Once a part of Dakota Territory, South Dakota became a state on November 2, 1889. The state has an area of and an estimated population of just over... |
| 0.62 | Tennessee Tennessee Tennessee is a U.S. state located in the Southeastern United States. It has a population of 6,346,105, making it the nation's 17th-largest state by population, and covers , making it the 36th-largest by total land area... |
| 1.41 | Texas Texas Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in... |
| 1.70 | Utah Utah Utah is a state in the Western United States. It was the 45th state to join the Union, on January 4, 1896. Approximately 80% of Utah's 2,763,885 people live along the Wasatch Front, centering on Salt Lake City. This leaves vast expanses of the state nearly uninhabited, making the population the... |
| 2.24 | Vermont Vermont Vermont is a state in the New England region of the northeastern United States of America. The state ranks 43rd in land area, , and 45th in total area. Its population according to the 2010 census, 630,337, is the second smallest in the country, larger only than Wyoming. It is the only New England... |
| 0.30 | Virginia Virginia The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there... |
| 3.025 | Washington |
| 0.55 | West Virginia West Virginia West Virginia is a state in the Appalachian and Southeastern regions of the United States, bordered by Virginia to the southeast, Kentucky to the southwest, Ohio to the northwest, Pennsylvania to the northeast and Maryland to the east... |
| 2.52 | Wisconsin Wisconsin Wisconsin is a U.S. state located in the north-central United States and is part of the Midwest. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michigan to the northeast, and Lake Superior to the north. Wisconsin's capital is... |
| 0.60 | Wyoming Wyoming Wyoming is a state in the mountain region of the Western United States. The western two thirds of the state is covered mostly with the mountain ranges and rangelands in the foothills of the Eastern Rocky Mountains, while the eastern third of the state is high elevation prairie known as the High... |
| 2.50 | Dist. of Columbia |
| 2.00 | Northern Marianas Islands |
| 2.23 | Puerto Rico Puerto Rico Puerto Rico , officially the Commonwealth of Puerto Rico , is an unincorporated territory of the United States, located in the northeastern Caribbean, east of the Dominican Republic and west of both the United States Virgin Islands and the British Virgin Islands.Puerto Rico comprises an... |
| 3.00 | Guam Guam Guam is an organized, unincorporated territory of the United States located in the western Pacific Ocean. It is one of five U.S. territories with an established civilian government. Guam is listed as one of 16 Non-Self-Governing Territories by the Special Committee on Decolonization of the United... |
| 2.50 | American Samoa American Samoa American Samoa is an unincorporated territory of the United States located in the South Pacific Ocean, southeast of the sovereign state of Samoa... |
| likely 1.50-2.00 | U.S. Virgin Islands |
- The federal excise tax on cigarettes is $1.01, which is not included in the rates shown above.
- Several municipalities, such as New York City, ChicagoChicagoChicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
, and AnchorageAnchorage, AlaskaAnchorage is a unified home rule municipality in the southcentral part of the U.S. state of Alaska. It is the northernmost major city in the United States...
also have a cigarette tax, which is not included in any of the rates shown above. - Most states charge a sales tax on top of the retail price and the excise taxes. A few municipalities levy a local sales tax in addition to the state tax. None of the rates shown above take sales taxes into account.
Non-cigarette tobacco taxes
Taxes on smokeless (chewing) tobacco, as well as (and often concurrent with) snuffSnuff
Snuff is a product made from ground or pulverised tobacco leaves. It is an example of smokeless tobacco. It originated in the Americas and was in common use in Europe by the 17th century...
, cigar
Cigar
A cigar is a tightly-rolled bundle of dried and fermented tobacco that is ignited so that its smoke may be drawn into the mouth. Cigar tobacco is grown in significant quantities in Brazil, Cameroon, Cuba, the Dominican Republic, Honduras, Indonesia, Mexico, Nicaragua, Philippines, and the Eastern...
s and pipe tobacco, are also common in the United States. Forty-nine states and the District of Columbia have such a non-cigarette tax(es), Pennsylvania being the sole exception, having no smokeless or cigar tax at all (though it considers small cigars to be cigarettes for taxation purposes). Of the 49 states that do impose in this category, Florida does not tax cigars, though all other tobacco products are taxed. The U.S. federal government charges different non-cigarette excise taxes, according to the following 6 categories: snuff, chewing tobacco, pipe tobacco, roll-your-own
Roll-your-own
Roll-your-own cigarettes refer to a cigarette made from loose tobacco and rolling papers. Roll-your-own products are sold as a pouch of tobacco for rolling hand-rolled cigarettes, sometimes with the rolling papers provided in the pouch...
, large cigars, and small cigars. Cigarette papers and tubes are also taxed.
See also
- Cigarette Taxation
- Tobacco Smoking