Vape taxes in U.S. states, territories and municipalities (Vaping 360)
Before 2019, nine states and the District of Columbia taxed vaping products. That number more than doubled in the first seven months of 2019, when the moral panic over JUUL and teenage vaping that had grabbed headlines almost every day for over a year pushed legislators to do something to “stop the epidemic.”
As of early 2024, 31 U.S. states have a tax on vapor products, along with some cities and counties, and the District of Columbia and Puerto Rico.
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, 2023, the tax is 56.32% 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 50% 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 will rise to 56% in 2024, and finally 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, cigalikes), and 10% wholesale on open-system products, including bottled e-liquid and devices
Delaware
A $0.05 per milliliter tax on nicotine-containing e-liquid
District of Columbia
The nation’s capitol 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 91% of wholesale cost for devices and nicotine-containing e-liquid
Georgia
A $0.05 per milliliter tax on e-liquid in closed-system products (pods, cartridges, cigalikes), 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 have to also pay the $0.20 per mL Cook County tax.) Because of the excessive taxes, some vape shops in Chicago sell zero-nicotine e-liquid and shots of DIY nicotine to avoid the high per-mL tax on the larger bottles
- Cook County taxes products containing nicotine at a rate of $0.20 per milliliter
Indiana
A 15% tax on retail gross on all vaping product sales, with or without nicotine
Kansas
A $0.05 per milliliter tax 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 $0.15 per milliliter tax 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 6% retail tax on all open-system vaping products (including nicotine-containing 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 in from out of state. However, for bottled e-liquid produced in Minnesota, only the nicotine itself is taxed
Nebraska
The state has no taxes on vaping products, but one city does:
- Omaha has included vaping products in the city’s 3% tobacco tax since 2019
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, cigalikes)
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 $0.05 per milliliter tax on nicotine-containing e-liquid
Ohio
A $0.10 per milliliter tax 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 $0.05 per milliliter tax on e-liquid and a $3.00 per unit tax on e-cigarettes
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 highest tax imposed by any state. The tax applies to products with and without nicotine
Virginia
A $0.066 per milliliter tax on nicotine-containing e-liquid
Washington State
A two-tiered tax charges $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 $0.075 per milliliter tax on all e-liquid. The tax applies to products with and without nicotine
Wisconsin
A $0.05 per milliliter tax on e-liquid in closed-system products (pods, cartridges, cigalikes) only. The tax applies to products with and without nicotine
Wyoming
A 15% wholesale tax on all vapor devices and nicotine-containing e-liquid