New York continues to impose the highest state cigarette tax in the country, charging $5.35 on every pack of 20 cigarettes before federal, local and sales taxes are added.
The rate ranks above the District of Columbia’s $5.07 tax and Maryland’s $5 tax, according to a new analysis from the Tax Foundation examining cigarette excise taxes in effect as of July 2026.
Rhode Island ranked next at $4.50 per pack, followed by Connecticut at $4.35. At the opposite end of the list, Missouri taxed cigarettes at 17 cents per pack, while Georgia charged 37 cents and North Dakota charged 44 cents.
Every pack sold nationwide is also subject to a federal excise tax of $1.01.
That means New York’s combined state and federal cigarette taxes total at least $6.36 per pack before any applicable sales or local taxes are included.
New York tax far exceeds neighboring states
New York’s rate is significantly higher than cigarette taxes in most nearby states.
Connecticut’s tax is $1 lower at $4.35 per pack. Massachusetts charges $3.51, Vermont charges $3.08, New Jersey charges $3 and Pennsylvania charges $2.60.
The difference is even greater between New York and states with comparatively low cigarette taxes.
A pack sold in New York carries $5.18 more in state excise tax than one sold in Missouri. The difference between New York and Virginia, which charges 60 cents per pack, is $4.75.
Those gaps can encourage smokers to buy cigarettes in lower-tax jurisdictions or through illicit markets, according to the Tax Foundation.
The organization estimated that more than 1.5 billion packs of cigarettes are smuggled annually in the United States. Large differences between state tax rates create financial incentives for both organized trafficking and individual cross-border purchases.
Cigarette tax falls hardest on lower-income smokers
The Tax Foundation also found New York’s cigarette tax to be the most regressive in the country.
A regressive tax consumes a larger share of income from lower-income households than it does from wealthier households.
In New York, the effective cigarette tax rate for households in the lowest income quintile was estimated to be 22.2 times the effective rate paid by households in the highest income quintile.
Utah had the least regressive state cigarette tax in the analysis, though the burden on its lowest-income households was still 11.2 times higher than the rate for its highest-income households.
The report said consumption taxes tend to be regressive because lower-income households generally spend a larger share of their available income than wealthier households.
Cigarette taxes amplify that imbalance because smoking rates and tobacco consumption are not evenly distributed across income levels.
At the federal level, the top 10% of income earners paid an estimated 18.9% of tobacco excise taxes in 2023. The same group paid 32.2% of federal alcohol taxes and approximately 70% of federal income taxes.
High rates discourage smoking but weaken revenue
Cigarette taxes are often intended to reduce smoking by making tobacco products more expensive.
Smoking rates have fallen for decades, resulting in fewer packs being purchased and less cigarette tax revenue being collected.
The Tax Foundation said that decline represents a public health success but creates a fiscal problem when governments rely on tobacco taxes to finance ongoing programs.
States sometimes respond to falling cigarette sales by increasing tax rates. That can produce a short-term revenue increase but may accelerate longer-term declines as more people stop smoking, buy products elsewhere or turn to unregulated markets.
The report described cigarette tax revenue as volatile because it depends on a narrow and shrinking tax base.
The Tax Foundation argued that tobacco excise taxes are poorly suited for supporting general government operations and should instead be reserved for programs directly connected to tobacco use and its health effects.
Taxes account for a large share of retail prices
State excise taxes accounted for an average of 31.1% of the retail price of cigarettes nationwide in 2025, according to data cited in the report.
The share ranged from 14.7% in Missouri to 44.8% in Maryland.
Those figures do not include the federal cigarette tax, sales taxes, local cigarette taxes or business taxes that may also be reflected in the final retail price.
New York City applies an additional local cigarette tax, meaning smokers there face an even higher burden than the statewide figure alone suggests.
The report did not provide a complete average retail price for cigarettes in New York or calculate the full tax burden after all state and local charges.
Other states increased rates
Several states recently raised their cigarette taxes, though none surpassed New York.
Indiana nearly tripled its tax from about $1 to $3 per pack in July 2025, moving from 39th to 13th highest nationally.
Maine increased its tax from $2 to $3.50 in January, moving to eighth highest. Hawaii raised its rate from $3.20 to $3.60, placing sixth.
New Jersey increased its tax from $2.70 to $3 in August 2025, while Utah raised its rate from $1.70 to $2.20 in July.
Minnesota and the District of Columbia also increased their taxes through automatic adjustments.
New York’s $5.35 rate remains unmatched among states. Only the District of Columbia comes within 28 cents per pack.
The report said policymakers must weigh the public health benefits of higher prices against the burden on lower-income smokers, the instability of tobacco revenue and the risk of pushing purchases into lower-tax or illegal markets.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to news@fingerlakes1.com.