Vaping Taxes in the United States

Alaska

Alaska doesn’t have a state tax, but some municipalities have their own vape taxes:

 

• Juneau Borough, NW Arctic Borough and Petersburg Borough have identical 45% wholesale taxes on nicotine-containing products

• Anchorage Borough has a 55% wholesale tax

• Matanuska-Susitna Borough has a 55% wholesale tax

 

California

The California wholesale tax on “other tobacco products” is set yearly by the state Board of Equalization. It mirrors the percentage of all taxes assessed on cigarettes. Originally this amounted to 27% of the wholesale cost, but after Proposition 56 increased the tax on cigarettes from $0.87 to $2.87 a pack, the vape tax increased drastically. For the year beginning July 1, 2024, the tax is 52.92% of the wholesale cost for all nicotine-containing products.

 

On July 1, 2022, California added a retail tax to the existing wholesale tax—12.5% on all nicotine-containing vaping products, including those bought online from retailers in other states

 

Colorado

The current tax in Colorado is 56% of manufacturer’s list price on all nicotine-containing vapor products (including bottled e-liquid). The tax, approved by Colorado voters in 2020, launched in 2021 at 30%, escalated to 35% in 2022, then to 50% in 2023. It rose to 56% in 2024, and will increase to 62% in 2027. The tax is 50% lower for products given a Modified Risk (MRTP) designation by the FDA (but no manufacturer of a liquid-based vaping product has even applied for an MRTP authorization)

 

Connecticut

The state has a two-tiered tax on nicotine-containing vape products: $0.40 per milliliter on e-liquid in closed-system products (pods, cartridges, disposables), and 10% wholesale on open-system products, including bottled e-liquid and devices

 

Delaware

A tax of $0.05 per milliliter on nicotine-containing e-liquid

 

District of Columbia

The nation’s capital classifies vapes as “other tobacco products,” and assesses a tax on the wholesale price based on a rate that is indexed to the wholesale price of cigarettes. The tax is currently set at 79% of wholesale cost for devices and nicotine-containing e-liquid

 

Georgia

A tax of $0.05 per milliliter on e-liquid in closed-system products (pods, cartridges, disposables), and a 7% wholesale tax on open-system devices and bottled e-liquid. The taxes apply to products with and without nicotine

 

Hawaii

A 70% wholesale tax on all vaping products

 

Illinois

A 15% wholesale tax on all vaping products. The tax applies to products with and without nicotine. In addition to the statewide tax, both Cook County and the city of Chicago (which is in Cook County) have their own vape taxes:

 

• Chicago assesses a $1.50 per unit tax on any vaping product containing nicotine (bottled e-liquid or prefilled devices) and a separate $1.20 per milliliter tax on the liquid itself. (Chicago vapers also must pay the $0.20 per mL Cook County tax)

• Cook County taxes products containing nicotine at a rate of $0.20 per milliliter

 

Indiana

A 15% tax on the retail gross on all vaping product sales, with or without nicotine; and a 15% wholesale tax on closed-system products like prefilled pod vapes (and refill pods and cartridges) and disposables

 

Kansas

A tax of $0.05 per milliliter on all e-liquid. The tax applies to products with and without nicotine

 

Kentucky

A 15% wholesale tax on bottled e-liquid and open-system devices, and a $1.50 per unit tax on prefilled pods and cartridges. The taxes apply to products with and without nicotine

 

Louisiana

A tax of $0.15 per milliliter on nicotine-containing e-liquid

 

Maine

A 43% wholesale tax on all vaping products. The tax applies to products with and without nicotine

 

Maryland

A 20% retail tax on open-system vaping products and bottled e-liquid, and a 60% tax on nicotine-containing e-liquid in containers with a capacity under 5 milliliters (pods, cartridges, disposables). In addition to the state tax:

 

• Montgomery County imposes a 30% wholesale tax on all vaping products, including devices sold without liquid

 

Massachusetts

A 75% wholesale tax on all vaping products. The tax applies to products with and without nicotine. The law requires consumers to produce proof that their vaping products have been taxed, or they are subject to seizure and a fine of $5,000 for the first offense, and $25,000 for additional offenses

 

Minnesota

In 2011 Minnesota became the first state to impose a tax on e-cigarettes. The tax was originally 70% of wholesale cost, but was increased in 2013 to 95% of wholesale on finished products that contain nicotine (cigalikes, pod vapes, bottled e-liquid) and are transported from out of state. However, for bottled e-liquid produced in Minnesota, only the nicotine itself is taxed

 

Nebraska

Nebraska has a two-tiered tax, depending on the size of the e-liquid container (or prefilled vape). For products containing less than 3 milliliters of e-liquid, the tax is $0.05/mL. For products containing 3 mL or more, there is a 10% wholesale tax. The tax applies only to products that contain nicotine. In addition to the state tax:

 

• Omaha includes vaping products in the city’s 3% tobacco tax

 

Nevada

A 30% wholesale tax on all vapor products. The tax applies to products with and without nicotine

 

New Hampshire

An 8% wholesale tax on open-system vaping products (including nicotine-containing e-liquid), and $0.30 per milliliter on closed-system products (pods, cartridges, disposables) 

 

New Jersey

New Jersey taxes nicotine-containing e-liquid at $0.10 per milliliter in pod- and cartridge-based products, 10% of the retail price for bottled e-liquid, and 30% wholesale for devices

 

New Mexico

New Mexico has a two-tiered e-liquid tax: 12.5% wholesale on bottled e-liquid, and $0.50 on each pod, cartridge, or cigalike with a capacity under 5 milliliters. The taxes apply to products with and without nicotine

 

New York

A 20% retail tax on all vapor products. The tax applies to products with and without nicotine

 

North Carolina

A tax of $0.05 per milliliter on nicotine-containing e-liquid

 

Ohio

A tax of $0.10 per milliliter on nicotine-containing e-liquid

 

Oregon

A 65% wholesale tax on all non-cannabis "inhalant delivery systems,", including hardware and "components" (which includes e-liquid). The tax also includes heated tobacco products (HTPs) like IQOS, but exempts all vaping products sold in licensed cannabis dispensaries. The tax applies to products with and without nicotine

 

Pennsylvania

A 40% wholesale tax on e-liquid and devices that are sold with e-liquid included. The tax applies to products with and without nicotine

 

Puerto Rico

A tax of $0.05 per milliliter on e-liquid, and a $3.00 per unit tax on e-cigarettes

 

Rhode Island

Beginning Jan. 1, 2025, the state will impose a 10% wholesale tax on open-system vape products and bottled e-liquid, and a $0.50 per milliliter tax on sealed devices sold with liquid included

 

Utah

A 56% wholesale tax on e-liquid and prefilled devices. The tax applies to products with and without nicotine

 

Vermont

A 92% wholesale tax on e-liquid and devices. The tax applies to products with and without nicotine

 

Virginia

A tax of $0.11 per milliliter on nicotine-containing e-liquid

 

Washington State

Washington has a two-tiered tax: $0.27 per milliliter on e-juice in pods and cartridges smaller than 5 mL in size, and $0.09 per milliliter on liquid in containers larger than 5 mL. The taxes apply to products with and without nicotine

 

West Virginia

A tax of $0.075 per milliliter on all e-liquid. The tax applies to products with and without nicotine

 

Wisconsin

A tax of $0.05 per milliliter on e-liquid in closed-system products (pods, cartridges, disposables) only. The tax applies to products with and without nicotine

 

Wyoming

A 15% wholesale tax on all vaping devices and nicotine-containing e-liquid