Research Areas
Cigarette 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.
Additional questions about cigarette taxes? Contact us at (202) 464-6200.
Articles from the Tax Foundation
- Texas Margin Tax Experiment Failing Due to Collection Shortfalls, Perceived Unfairness for Taxing Unprofitable and Small Businesses, and Confusing Rules, by Joseph Henchman, August 17, 2011
- Fergus Hodgson of the Pelican Institute, June 17, 2011
- Connecticut Governor Malloy Proposes Multifaceted Tax Plan, by Kailee Tkacz and Mark Robyn, March 14, 2011
- Facts & Figures Handbook: How Does Your State Compare?, edited by Mark Robyn, February 28, 2011
- State Cigarette Excise Tax Rates, as of January 1, 2011, February 25, 2011
- Joseph Henchman of the Tax Foundation on 2010 State Tax Changes, January 27, 2011
- State Tax Changes During 2010, by Joseph Henchman, January 12, 2011
- A Review of 2010’s Changes In State Tax Policy, by Joseph Henchman and Xander Stephenson, August 23, 2010
- Wishful Thinking About Tax Burdens in Ohio, by Mark Robyn and Rob Shrum, April 7, 2010
- High cigarette taxes stoke bootlegging, violence, by Patrick Fleenor, April 6, 2010
- State Sales, Gasoline, Cigarette, and Alcohol Tax Rates by State, 2000-2010, April 1, 2010
- How Does Your State Compare? Tax Foundation Releases 2010 Facts & Figures Handbook, March 25, 2010
- Smoke and Mirrors on the Tobacco Tax Hike, by Patrick Fleenor, March 10, 2010
- Georgia Should Refrain from Relying on Smokers to Fill Budget Hole, by Justin Higginbottom, March 10, 2010
- Georgia Should Respond to Recession with Tax Reform, Not Tax Gimmicks, by Justin Higginbottom, February 19, 2010
- Fergus Cullen of the Yankee Institute for Public Policy: Connecticut Budget, September 16, 2009
- Higher cigarette taxes: unhealthy and unfair, by Patrick Fleenor, June 29, 2009
- The Price of Paradise: Hawaii Becomes Fifth State to Adopt New Income Tax Brackets on High-Earners, by Mark Robyn and Joseph Henchman, May 12, 2009
- Nanny Tax Rap Video, by Matt Moon, May 9, 2009
- Border Zone Cigarette Taxation: Arkansas’s Novel Solution to the Border Shopping Problem, by Mark Robyn, April 9, 2009
- Funding S-CHIP with Federal Cigarette Tax Increase is Poor Tax Policy, by Joseph Henchman and Gerald Prante, January 15, 2009
- Phil Kerpen of Americans for Prosperity: SCHIP and Potential Federal Cigarette Tax Hike, January 7, 2009
- Give police a break: Leave the cigarette tax alone, by Patrick Fleenor, December 11, 2008
- Federal Excise Tax Rates, 1944-2008. Selected Years, November 9, 2008
- Economic Growth Requires Bold Steps: Mississippi Should Consider Tax Reform Recommendations, by Joseph Henchman, July 18, 2008
- Cigarette Taxes Are Fueling Organized Crime, by Patrick Fleenor, May 7, 2008
- Beacon Hill's Gift to the Black Market, by Patrick Fleenor, April 26, 2008
- What Is Proper Tax Policy for Smokeless Tobacco Products?, by Gerald Prante, March 26, 2008
- Increasing Federal Cigarette Taxes Will Hurt State Cigarette Tax Revenues: The Case of a Double Mark-Up, by Gerald Prante, August 7, 2007
- State Tobacco Tax Rates Have Skyrocketed Since Last Federal Tax Increase, by Gerald Prante and Curtis S. Dubay, July 13, 2007
- Options for Funding SCHIP Expansion: Cigarette Taxes Least Defensible Alternative, by Gerald Prante, July 13, 2007
- What Is 300 Percent of the Poverty Level?, by Gerald Prante, July 11, 2007
- Cigarette Taxes Choke the Poor, by Gerald Prante, July 7, 2007
- A State-by-State Estimate of the Impact of SCHIP Expansion and a 156 Percent Cigarette Tax Hike, by Gerald Prante, June 28, 2007
- Who Will Pay Taxes for Tennessee Governor's "Schools First" Initiative, and Who Will Receive the Spending?, by Andrew Chamberlain and Gerald Prante, April 18, 2007
- Tax Fairness Would Suffer under Senator Smith's Cigarette Tax Hike, by Patrick Fleenor, March 30, 2007
- Estimating Federal Tax Burdens for Major City Areas, Counties, and U.S. Congressional Districts, by Andrew Chamberlain and Gerald Prante, March 22, 2007
- California Cigarette Tax Proposal Would Hurt State's Poorest, by Andrew Chamberlain and Patrick Fleenor, October 28, 2006
- Crime, Terror Benefit from Prop. 203 Cigarette Tax Hike in Arizona, by Patrick Fleenor, October 16, 2006
- Smugglers and Thieves Await Passage of California's Prop. 86 Cigarette Tax Hike, by Patrick Fleenor, October 12, 2006
- California Schemin': Cigarette Tax Evasion and Crime in the Golden State, by Patrick Fleenor, October 5, 2006
- What Is Proper Tax Policy for Smokeless Tobacco Products?, by Gerald Prante, September 22, 2006
- Higher Cigarette Taxes Mean More Smuggling, by Patrick Fleenor, May 15, 2006
- Federal Excise Tax Collections, 1940-2006, April 28, 2006
- State Excise Taxation: Horse-and-Buggy Taxes In an Electronic Age, by Richard E. Wagner, Ph.D., May 31, 2005
- Dates of Adoption of Major State Taxes, January 1, 2005
- Who Bears the Ancillary Cost of Tobacco Use?, by Patrick Fleenor, January 1, 2001
- Justice v. Tobacco: Justice Loses, by J. D. Foster, Ph.D., September 1, 1999
- Federal Excise Taxes and the Distribution of Taxes Under Tax Reform, by J. Scott Moody, January 1, 1999
- How Excise Tax Differentials Affect Interstate Smuggling and Cross-Border Sales of Cigarettes in the United States, by Patrick Fleenor, October 1, 1998
- Burning Issues in the Tobacco Settlement: An Economic Perspective, by Jane Gravelle, July 1, 1998
- How the McCain Bill Will Affect Smokers' Wallets and the Underground Cigarette Market, by Patrick Fleenor, March 1, 1998
- The Regressivity of Sin Taxes: The Lifetime Tax Burden of Taxes on Alcohol and Cigarettes, by Robert B. Schwab and Andrew B. Lyon, November 1, 1997
- Excise Taxes and Sound Tax Policy, by John R. McGowan, May 1, 1997