Tobacco Pricing Strategies

Tobacco use remains a leading cause of preventable death in the United States, known to cause cancer and other harmful health conditions, including, but not limited to, respiratory and cardiovascular disease. Implementing evidence-based policies that reduce smoking and tobacco consumption can decrease tobacco-related illnesses and death. One of the most effective strategies to decrease tobacco use is to raise the price of tobacco products, something which state governments can accomplish by establishing specific taxes and pricing limits for tobacco products. Increasing the cost of cigarettes and other tobacco products can promote better health and generate cost savings through lower healthcare spending in addition to averted productivity loss. State governments place a variety of taxes on tobacco products, including excise taxes, general sales taxes, and use taxes.

This map presents state-level statutes and regulations that impact tobacco pricing strategies as of September 1, 2019. The map identifies the type, amount, and degree of consumer liability of cigarette taxes, where cigarette tax funds are allocated, what type of tobacco products are taxed at unique rates, whether e-cigarettes are taxed and at what rate, whether the state preempts local tobacco taxation, whether the state sets minimum prices for tobacco, whether tobacco is prohibited to be sold below cost, and whether the state regulates combination sales.

This publication was created as part of the Promoting Health and Cost Control in States (PHACCS) Initiative in collaboration with Trust for America’s Health and supported by the Robert Wood Johnson Foundation. Click here for more information on PHACCS.