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NY tobacco tax goes to $5.35 per pack, highest in nation, on Sept. 1

August 29, 2023
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When we watch streaming shows, the hubby and I get a kick out of the warnings that pop up before the programs start.

The one that shows how things have changed the most is the alert that we will see people smoking. We both grew up in homes where both our parents smoked. So did their friends. And I smoked way to many cigarettes for almost a decade, before quitting as my wedding gift to the never inhaled any product hubby.

While my smoking days ended because of love, money is a reason that many others quit.

Stick and carrot to quit cigarettes: Once it became clear that smoking causes a wide array of health issues, most notably cancer, public advocacy groups and governments at all levels joined forces to encourage people to give up tobacco use.

The carrot approach is appealing to the improved health of former smokers and their family and friends who no longer have to endure secondhand smoke.

The stick counterpart is increasing the price of cigarettes and other tobacco products by adding or hiking taxes. This has been particularly effective in slowing smoking among young people, who tend to have less disposable income to spend on cigarettes.

The tax increases also add to state and local revenue.

One of those hikes goes into effect on Sept. 1. This Friday, New York's state tobacco excise tax goes up $1. That will put the Empire State tax at $5.35 per pack.

It will be the United States' highest cigarette tax.

Other cigarette tax numbers: The New York tobacco tax hike is the first one in 2023. It's the first time New York has raised taxes on cigarettes in more than a decade, according to the American Lung Association.

No state increased cigarette taxes in 2022.

Here is an overview of cigarette tax rates, and more, across the nation, as tabulated by the Campaign for Tobacco-Free Kids on Aug. 8:

  • 37 states, the District of Columbia, Puerto Rico, Northern Mariana Islands, and Guam have cigarette tax rates of $1.00 per pack or higher.
  • 22 states, D.C., Puerto Rico, Northern Mariana Islands, and Guam have cigarette tax rates of $2.00 per pack or higher.
  • 10 states, D.C., Puerto Rico, Northern Mariana Islands, and Guam have cigarette tax rates of $3.00 per pack or higher.
  • 3 states, DC, Puerto Rico, and Guam have cigarette tax rates of $4.00 per pack or higher.
  • New York and Puerto Rico have cigarette tax rates higher than $5.00.

The Centers for Disease Control (CDC) and Prevention and the Tax Foundation also have their own interactive online tools that let you compare your state to the other 49 (and territories) when it comes to taxing smokers

The average state cigarette tax is $1.93 per pack. That amount does not does not include any of the U.S. territories' taxes.

The federal cigarette excise tax is $1.01 per pack.

Local taxes add up, too: In addition to excise taxes, some states also assess special taxes or fees on cigarettes made by Non-Participating Manufacturers (NPMs), the companies that have not joined the Master Settlement Agreement (MSA) between the states and the major cigarette companies.

Some local governments also have their own cigarette taxes. Notable ones include $1.18 in Chicago; $1.50 in New York City; $2.00 in Philadelphia; $3.00 in Cook County, Illinois; $3.00 in Juneau, Alaska; $3.30 in Aspen, Colorado; and $4.00 in Eagle County, Colorado.

Finally, the reason for all those streaming program smoking warnings. Nationally, The Campaign for Tobacco-Free Kids estimates that the health care costs associated with smoking-caused ailments total $20.52 per pack.

You also might find these items of interest:

 

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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