Cigar Tax By State

Cigar Taxes By State

Cigar Tax By State Image

Cigar taxes, including sales tax, vary significantly by state in the U.S. These taxes can include a combination of excise taxes, which are specific to tobacco products, and general sales taxes. Here’s a general overview of how these taxes are applied in different states:

1. Excise Tax on Cigars

Percentage of Price: Some states tax cigars as a percentage of the manufacturer’s suggested retail price (MSRP). This percentage can range from as low as 7% to as high as 95%.
Per Cigar Tax: Other states impose a flat rate per cigar, which can vary widely. For example, some states might charge $0.05 per cigar, while others might charge $0.50 or more.

2. Sales Tax on Cigars

In addition to the excise tax, cigars may also be subject to the state’s general sales tax. This tax is applied to the final purchase price, which includes both the cost of the cigar and the excise tax.

Where Does The Cigar Tax Actually Go ?

Most people would like to know where their hard earned cash goes towards when paying ridiculous taxes. Since this is one of the questions I often hear from customers, I decided to go on a quest to get the real answers. After 50 years of interviews with lawmakers and departments of revenue across this beautiful Country, they all had similar answers, ” We don’t know, but we need more of it”.

Examples by State:

California:
- Excise Tax: 56.93% of the wholesale price.
- Sales Tax: Ranges from 7.25% to 10.25% depending on the location.
New York:
- Excise Tax: 75% of the wholesale price.
- Sales Tax: 4% state sales tax, plus local taxes that can bring the total to around 8% to 8.875%.
Florida:
- Excise Tax: No state excise tax on cigars.
- Sales Tax: 6% state sales tax, with potential local surtaxes.
Texas:
- Excise Tax: $0.01 per cigar if it weighs less than 3 pounds per 1,000 cigars; $0.015 per cigar if it weighs more than 3 pounds per 1,000 cigars.
- Sales Tax: 6.25% state sales tax, plus local taxes that can raise the total to around 8.25%.

States with High Cigar Taxes:

Minnesota: 95% of the wholesale price, capped at $3.50 per cigar.
Massachusetts: 40% of the wholesale price.
Connecticut: 50% of the wholesale price, capped at $1 per cigar.

States with Low or No Cigar Excise Tax:

Pennsylvania: No excise tax on cigars.
Florida: No state excise tax on cigars, although sales tax applies.
New Hampshire: No state excise tax on cigars and no general sales tax.

Impact on Consumers:

The combined effect of excise taxes and sales taxes can make cigars significantly more expensive in some states compared to others. States with high taxes often see cigar prices that are much higher than those in states with low or no taxes. This difference in taxation can influence purchasing decisions, with many consumers seeking out retailers in low-tax states like New Hampshire or online sellers that ship from these states.

Conclusion:

Understanding the tax landscape is crucial for cigar enthusiasts. The total tax burden on cigars can vary dramatically depending on where you buy them. For those in high-tax states, purchasing from states with lower taxes, like New Hampshire, can result in significant savings.

Here’s a list of all U.S. states with a general overview of cigar taxes (both excise and sales taxes) where applicable:

1. Alabama

Excise Tax: 4% of the manufacturer’s price.
Sales Tax: 4% state sales tax, with local taxes adding up to 7.5%.
Link Here

2. Alaska

Excise Tax: 75% of the wholesale price.
Sales Tax: No state sales tax, but local sales taxes may apply
Link Here.

3. Arizona

Excise Tax: $0.218 per cigar.
Sales Tax: 5.6% state sales tax, with local taxes possibly increasing this.
Link Here

4. Arkansas

Excise Tax: 68% of the manufacturer’s price.
Sales Tax: 6.5% state sales tax, with local taxes possible.
Link Here

5. California

Excise Tax: 56.93% of the wholesale price.
Sales Tax: 7.25% state sales tax, with local taxes raising it up to 10.25%.
Link Here

6. Colorado

Excise Tax: 50% of the manufacturer’s price.
Sales Tax: 2.9% state sales tax, with local taxes possibly increasing this.
Link Here

7. Connecticut

Excise Tax: 50% of the wholesale price, capped at $1 per cigar.
Sales Tax: 6.35% state sales tax.
Link Here

8. Delaware

Excise Tax: 30% of the wholesale price.
Sales Tax: No state sales tax.
Link Here

9. Florida

Excise Tax: No state excise tax on cigars.
Sales Tax: 6% state sales tax, with local surtaxes possible.

10. Georgia

Excise Tax: 23% of the wholesale price.
Sales Tax: 4% state sales tax, with local taxes possible.

11. Hawaii

Excise Tax: 50% of the wholesale price.
Sales Tax: 4% state general excise tax, with local additions possible.

12. Idaho

Excise Tax: 40% of the wholesale price.
Sales Tax: 6% state sales tax.

13. Illinois

Excise Tax: 36% of the wholesale price.
Sales Tax: 6.25% state sales tax, with local taxes possible.

14. Indiana

Excise Tax: 24% of the wholesale price.
Sales Tax: 7% state sales tax.

15. Iowa

Excise Tax: 50% of the wholesale price, capped at $0.50 per cigar.
Sales Tax: 6% state sales tax, with local taxes possible.

16. Kansas

Excise Tax: 10% of the wholesale price.
Sales Tax: 6.5% state sales tax, with local taxes possible.

17. Kentucky

Excise Tax: 15% of the wholesale price.
Sales Tax: 6% state sales tax.

18. Louisiana

Excise Tax: 8% of the invoice price.
Sales Tax: 4.45% state sales tax, with local taxes possible.

19. Maine

Excise Tax: 20% of the wholesale price.
Sales Tax: 5.5% state sales tax.

20. Maryland

Excise Tax: 15% of the wholesale price.
Sales Tax: 6% state sales tax.

21. Massachusetts

Excise Tax: 40% of the wholesale price.
Sales Tax: 6.25% state sales tax.

22. Michigan

Excise Tax: 32% of the wholesale price, capped at $0.50 per cigar.
Sales Tax: 6% state sales tax.

23. Minnesota

Excise Tax: 95% of the wholesale price, capped at $3.50 per cigar.
Sales Tax: 6.875% state sales tax, with local taxes possible.

24. Mississippi

Excise Tax: 15% of the manufacturer’s price.
Sales Tax: 7% state sales tax.

25. Missouri

Excise Tax: 10% of the manufacturer’s price.
Sales Tax: 4.225% state sales tax, with local taxes possible.

26. Montana

Excise Tax: 50% of the wholesale price.
Sales Tax: No state sales tax.

27. Nebraska

Excise Tax: 20% of the purchase price.
Sales Tax: 5.5% state sales tax, with local taxes possible.

28. Nevada

Excise Tax: 30% of the wholesale price.
Sales Tax: 6.85% state sales tax, with local taxes possible.

29. New Hampshire

Excise Tax: No state excise tax on cigars.
Sales Tax: No state sales tax.

30. New Jersey

Excise Tax: 30% of the wholesale price.
Sales Tax: 6.625% state sales tax.

31. New Mexico

Excise Tax: 25% of the wholesale price.
Sales Tax: 5.125% state sales tax, with local taxes possible.

32. New York

Excise Tax: 75% of the wholesale price.
Sales Tax: 4% state sales tax, with local taxes making it up to 8%–8.875%.

33. North Carolina

Excise Tax: 12.8% of the wholesale price.
Sales Tax: 4.75% state sales tax, with local taxes possible.

34. North Dakota

Excise Tax: 28% of the wholesale price.
Sales Tax: 5% state sales tax, with local taxes possible.

35. Ohio

Excise Tax: 17% of the wholesale price, capped at $0.52 per cigar.
Sales Tax: 5.75% state sales tax, with local taxes possible.

36. Oklahoma

Excise Tax: $0.12 per cigar.
Sales Tax: 4.5% state sales tax, with local taxes possible.

37. Oregon

Excise Tax: 65% of the wholesale price, capped at $0.50 per cigar.
Sales Tax: No state sales tax.

38. Pennsylvania

Excise Tax: No state excise tax on cigars.
Sales Tax: 6% state sales tax, with local taxes possible.

39. Rhode Island

Excise Tax: 80% of the wholesale price, capped at $0.50 per cigar.
Sales Tax: 7% state sales tax.

40. South Carolina

Excise Tax: 5% of the manufacturer’s price.
Sales Tax: 6% state sales tax, with local taxes possible.

41. South Dakota

Excise Tax: 35% of the wholesale price.
Sales Tax: 4.5% state sales tax, with local taxes possible.

42. Tennessee

Excise Tax: 6.6% of the wholesale price.
Sales Tax: 7% state sales tax, with local taxes making it up to 9.75%.

43. Texas

Excise Tax: $0.01 per cigar (if <3 pounds per 1,000 cigars); $0.015 per cigar (if >3 pounds per 1,000 cigars).
Sales Tax: 6.25% state sales tax, with local taxes possible.

44. Utah

Excise Tax: 86% of the manufacturer’s price.
Sales Tax: 4.85% state sales tax, with local taxes possible.

45. Vermont

Excise Tax: 92% of the wholesale price, capped at $2 per cigar.
Sales Tax: 6% state sales tax.

46. Virginia

Excise Tax: 10% of the manufacturer’s price.
Sales Tax: 4.3% state sales tax, with local taxes possible.

47. Washington

Excise Tax: 95% of the wholesale price, capped at $0.65 per cigar.
Sales Tax: 6.5% state sales