Vape & e-cig tax by state

Written by: Jeanne Thompson

vapor and e-cig taxes by state

See the current vape taxes by state. We’ve included the tax rates for each state that levies an excise tax on vaping products. Plus, see which states have the highest and lowest tax rates.

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    Vape tax by state

    See the current vape tax rates for your state as of October 2022.

    Some states tax open and closed vaping products differently.

    • Open: Allows the user to refill the liquid and has more freedom in voltage and nicotine levels.
    • Closed: Usually sold as pods or cartridges. Closed systems often have higher nicotine levels to allow for consumption of the desired amount of nicotine in shorter sessions.

    We also want to note that these taxes may not just apply to nicotine-based vaping products. Some states levy taxes on e-liquid whether it contains nicotine or not. We've provided that information for you too.

    Read more on the PACT Act here.

    Table Key

    VALM: Manufacturer Price/Wholesale Purchase Price

    VALW: Wholesale Sales Price

    VAL: Selling Price

    Alabama no tax No
    Alaska no tax No
    Arizona no tax No
    Arkansas no tax No
    California 61.74% VALM, additional 12.5% of retail No
    Colorado 35% VALM No
    Connecticut 10% VALW open, $0.40/ml closed No
    Delaware $0.05/ml No
    District of Columbia 79% VALW No
    Florida no tax No
    Georgia 0.05/ml closed replaceable cartridge, 7% VAL open & single-use closed Yes
    Hawaii no tax No
    Idaho no tax No
    Illinois 15% VALM Yes
    Indiana 15% VALM closed, 15% of retail on open Yes
    Iowa no tax No
    Kansas $0.05/ml No
    Kentucky 15% VAL open, $1.50/cartridge closed Yes
    Louisiana $0.05/ml No
    Maine 43% VALM Yes
    Maryland 12% of retail, 60% of retail on 5ml or less Yes
    Massachusetts 75% VALM Yes
    Michigan no tax No
    Minnesota 95% VALM No
    Mississippi no tax No
    Missouri no tax No
    Montana no tax No
    Nebraska no tax No
    Nevada 30% VALM Yes
    New Hampshire 8% VALM open, $0.30/ml closed No
    New Jersey 10% of retail open, $0.10/ml closed No
    New Mexico 12.5% of VALM open, $0.50/cartridge closed Yes
    New York 20% of retail Yes
    North Carolina $0.05/ml No
    North Dakota no tax No
    Ohio $0.10/ml No
    Oklahoma no tax No
    Oregon 65% VALM No
    Pennsylvania 40% VALW Yes
    Rhode Island no tax No
    South Carolina no tax No
    South Dakota no tax No
    Tennessee no tax No
    Texas no tax No
    Utah 56% VALM No
    Vermont 92% VALW Yes
    Virginia $0.066/ml No
    Washington $0.09/ml open, $0.27/ml closed Yes
    West Virginia $0.075/ml Yes
    Wisconsin $0.05/ml Yes
    Wyoming 15% VALM No

    Current as of October 2022. Rates are exclusive of sales tax.

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    Which state has the highest tax rate?

    Comparing tax rates for vaping products is difficult as some states levy a per unit rate and others take a percentage of wholesale prices.

    That said, the jurisdiction with the highest percent of wholesale tax rates is Minnesota at 95%.

    Kentucky has one of the highest per unit taxes at $1.50/closed system cartridge.

    Which state has the lowest tax rate?

    There are several states that do not have excise taxes on vaping products at all. However, out of the states that do tax vaping products, one of the lowest is percentage-based taxes is New Hampshire at 8% of wholesale price for open vaping products.

    Delaware, Kansas, Louisiana, North Carolina, and Wisconsin are also some of the lowest at $0.05/ml.

    Federal vape taxes

    There are currently no federal excise taxes on e-cigarettes. They could be coming soon though. There is already federal legislation affecting sellers of vaping products. Federal vape taxes could be next.

    Read up on the latest vaping law here.

    What is vape & e-cig tax revenue used for?

    Revenues collected from vape and e-cigarette taxes are used for a variety of purposes depending on the jurisdiction.

    Some states dedicate a portion of tax revenues to smoking cessation programs and health care. For many the revenue ends up in the general fund.

     

    This analysis is intended for informational purposes only and is not tax advice.  For tax advice, consult your tax adviser. See the full disclaimer here.