Inventory of Vape Tax Policies in Various States in the United States

What are the vape tax policies of states in the United States?

Currently, there are no federal taxes on vape products in the United States, but states have set their own vape tax policies. As of early 2024, a total of 32 states, the District of Columbia, the Commonwealth of Puerto Rico, and some cities and counties in the United States have taxed vape products. The following is a one-by-one review of the tax policies of each state in the United States:

• 1. California

California’s wholesale tax on “other tobacco products” is set annually by the state’s Board of Equalization. It reflects a percentage of all taxes levied on cigarettes. Originally this amounted to 27% of the wholesale cost, but e-cigarette taxes increased significantly after Proposition 56 increased the cigarette tax from $0.87 to $2.87 per pack. Starting July 1, 2023, the tax rate on all nicotine-containing products will be 56.32% of wholesale cost.

On July 1, 2022, California added a retail tax to the existing wholesale tax, imposing a 12.5% tax on all nicotine-containing vape products, including products purchased online from retailers in other states.

• 2. Colorado

Colorado’s e-cigarette tax was approved by voters in 2020 and launched in 2021. It will initially be 30%, rising to 35% in 2022 and 50% in 2023. It will rise to 56% in 2024 and will eventually rise to 62% in 2027.

For products granted a Modification Risk Transfer (MRTP) by the FDA, taxes can be reduced by 50% (but no liquid vape product manufacturer has applied for MRTP authorization).

• 3. Connecticut

The state imposes two levels of tax on nicotine-containing vape products: a $0.40 per milliliter tax on e-liquids in closed-system products and a 10% wholesale tax on open-system products, including bottled e-liquids and open devices.

• 4. Delaware

There is a $0.05 per milliliter tax on e-liquids containing nicotine.

• 5. Georgia

There is a $0.05 per milliliter tax on e-liquids in closed system products and a 7% wholesale tax on open system devices and bottled e-liquids. The tax applies to products with or without nicotine.

• 6. Hawaii

A 70% wholesale tax is imposed on all vape products.

• 7. Illinois

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

Chicago imposes a $1.50 per unit tax on any vape product containing nicotine (bottled e-liquid or prefilled device) and a $1.20 per milliliter tax on the e-liquid itself (Chicago vape users must also pay a $0.20 per milliliter tax Cook County taxes). Due to exorbitant taxes, some vape shops in Chicago sell zero-nicotine e-liquid and DIY nicotine to avoid the hefty tax.

Cook County imposes a tax of $0.20 per milliliter on products containing nicotine.

• 8. Indiana

A 15% tax is imposed on the total retail sales of all vape products, regardless of whether they contain nicotine.

• 9. Kansas

All e-liquids are taxed at $0.05 per milliliter. The tax applies to products with or without nicotine.

• 10. Kentucky

A 15% wholesale tax is imposed on bottled e-liquids and open system devices, and a $1.50 per unit tax is imposed on prefilled pod devices and pods. The tax applies to products with or without nicotine.

• 11. Louisiana

There is a $0.15 per milliliter tax on e-liquids containing nicotine.

• 12. Maine

A 43% wholesale tax is imposed on all vape products. The tax applies to products with or without nicotine.

• 13. Maryland

A 6% retail tax on all open vape products (including nicotine-containing e-liquids) and a 60% tax on nicotine-containing e-liquids in containers less than 5 ml (refillable or disposable) .

In addition to state taxes, Montgomery County imposes a 30% wholesale tax on all vape products, including devices that do not contain e-liquid.

• 14. Massachusetts

A 75% wholesale tax is imposed on all vape products. The tax applies to products with or without nicotine. The state law requires consumers to show proof that their vape products have been taxed or they will be confiscated, with fines of $5,000 for a first offense and $25,000 for subsequent offenses.

• 15. Minnesota

In 2011, Minnesota became the first U.S. state to tax vapes. The tax was initially 70% of wholesale costs and has now been increased to 95% of wholesale costs. For bottles of e-liquid produced in Minnesota, only the nicotine itself is taxed.

• 16. Nebraska

Nebraska has two levels of tax, depending on the size of the e-liquid container (or vape pre-filled with e-liquid). For products containing less than 3 ml of e-liquid, the tax is $0.05/ml. A wholesale tax of 10% applies to products containing 3 ml or more. The tax only applies to products containing nicotine.

In addition to state taxes, Omaha’s vaping products are subject to the city’s 3 percent tobacco tax.

• 17. Nevada

A 30% wholesale tax is imposed on all vape products. The tax applies to products with or without nicotine.

• 18. New Hampshire

An 8% wholesale tax is imposed on open system vape products (including nicotine-containing e-liquids) and a wholesale tax of $0.30 per milliliter on closed system products.

• 19. New Jersey

New Jersey imposes a tax of $0.10 per milliliter on nicotine e-liquid, 10% of the retail price on bottled e-liquids, and 30% of the wholesale price on devices.

• 20. New Mexico

New Mexico imposes a two-tier tax on e-liquids: a 12.5% wholesale tax on bottles of e-liquids and a $0.50 tax on each disposable vape or pod with a capacity of less than 5 milliliters. The tax applies to products with or without nicotine.

• 21. New York State

A 20% retail sales tax is imposed on all vape products. The tax applies to products with or without nicotine.

• 22. North Carolina

There is a $0.05 per milliliter tax on e-liquids containing nicotine.

• 23. Ohio

There is a $0.10 per milliliter tax on e-liquids containing nicotine.

• 24. Oregon

A 65% wholesale tax is imposed on all non-cannabis “inhalation delivery systems,” including hardware and its “components” (including e-cigarette oil). The scope of the tax also includes heated tobacco products such as IQOS, but excludes all vape products sold at licensed cannabis dispensaries. The tax applies to products with or without nicotine.

• 25. Pennsylvania

A 40% wholesale tax is imposed on e-liquids and devices containing e-liquids. The tax applies to products with or without nicotine.

• 26. Utah

A 56% wholesale tax is imposed on e-liquids and prefilled vapes. The tax applies to products with or without nicotine.

• 27. Vermont

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

• 28. Virginia

A tax of $0.066 per milliliter is imposed on e-liquids containing nicotine.

• 29. Washington State

It is taxed at $0.27 per milliliter and $0.09 per milliliter for volumes over 5 milliliters. The tax applies to products with or without nicotine.

• 30. West Virginia

All e-liquids are taxed at $0.075 per milliliter. The tax applies to products with or without nicotine.

• 31. Wisconsin

The tax of $0.05 per milliliter is only imposed on e-liquids in closed system products. The tax applies to products with or without nicotine.

• 32. Wyoming

A 15% wholesale tax is imposed on all vape devices and nicotine-containing e-liquids.

• 33. District of Columbia

A 15% wholesale tax is imposed on all vape devices and nicotine-containing e-liquids.

• 34. Commonwealth of Puerto Rico

There is a tax of $0.05 per milliliter on e-liquids and $3 per unit on vapes.

• 35. Alaska

There is no state tax on vape in Alaska, but some cities in the state are imposing one:
The Borough of Juneau, Northwest Arctic Borough and Petersburg Borough impose the same 45% wholesale tax on nicotine-containing products;

Anchorage Borough imposes a 55% wholesale tax;

The Matanuska-Susitna Borough imposes a 55% wholesale tax.

The above is an overview of vape tax policies in each US state. Please note that this information is based on knowledge as of March 2024 and tax policies are subject to change. If you learn of any updates to the vape tax policy, please leave a message below or contact VECEE customer service email: support@vecee.com.

Shenzhen Yocan Technology Co., Ltd. has been a leading healthy vaporizer manufacturer since 2013. We specialize in designing and innovating high-quality disposable vapes, pod systems, batteries, and other smoking products. It is to become an innovative electric vape pen and customized vape hardware technology company integrating R&D, design, manufacturing, and marketing.
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