These days, tobacco is under constant attack in the US, with new laws restricting the use of tobacco in one form or another nearly every day! It seems, in the effort to “sanitize” our country of anything deemed “unhealthy” (a decision made by someone who knows what’s best for you…), the government has slowly drifted to a state in which some areas of the country tax nearly double the price of a cigar (i.e. legalized theft)! And while the majority of the aggressive taxes are directed towards cigarettes and cheaper, machine-made cigars (which is also wrong), there is a noticeable push by the liberal and progressive movement to end the sale of premium cigars as we know it; introduced through the Family Smoking Prevention and Tobacco Control Act, signed into law by President Barack Obama on June 22, 2009.
Regulations being proposed against premium cigars include (but are not limited to) the banning of walk-in humidors and requiring manufacturers to submit their blends for “testing” before they can be sold, i.e. ending small batch and limited edition cigars, as well as thousands of cigar shops across the country.
Luckily, there are groups such as the Cigar Rights of America, dedicated to protecting the rights of cigar growers, manufacturers, retailers, and consumers of premium cigars (we strongly advise any fan of cigars and/or freedom become a CRA member).
But at the end of the day, you still need a place to buy premium cigars – we’ve made it easy to find which states will give you the best “bang for you buck”, and which ones you might want to consider “abandoning ship”…
2015 US taxes on premium cigars
US Cigar Tax
While our interactive map above is intended to give a quick and easy reference to each state’s tax rate on premium cigars, the table below will show a more detailed breakdown of a real-world scenario—e.g. what the cost may look like when buying a $10 premium cigar.
*Tax rates on our map have been averaged out to show the final percentage after tax caps have been taken into account. The rates below are the state’s technical percentages.
| United States Tax Rate Example Sheet ($10 MSRP) | |||
|---|---|---|---|
| State | Tax Rate | Tax Cap | Est. Selling Price |
| Alabama | 0.4% | $10.04 | |
| Alaska | 75% | $17.50 | |
| Arizona | 2.2% | $10.22 | |
| Arkansas | 68% | 50¢/Cigar Tax Cap | $10.50 |
| California | 28.95% | $12.90 | |
| Colorado | 40% | $14.00 | |
| Connecticut | 50% | 50¢/Cigar Tax Cap | $10.50 |
| Delaware | 15% | $11.50 | |
| Florida | 0% | $10.00 | |
| Georgia | 23% | $12.30 | |
| Hawaii | 50% | $15.00 | |
| Idaho | 40% | $14.00 | |
| Illinois | 36% | $13.60 | |
| Indiana | 24% | $12.40 | |
| Iowa | 50% | 50¢/Cigar Tax Cap | $10.50 |
| Kansas | 10% | $11.00 | |
| Kentucky | 15% | $11.50 | |
| Louisiana | 20% | $12.00 | |
| Maine | 20% | $12.00 | |
| Maryland | 15% | $11.50 | |
| Massachusetts | 40% | $14.00 | |
| Michigan | 32% | 50¢/Cigar Tax Cap | $10.50 |
| Minnesota | 95% | $3.50/Cigar Tax Cap | $13.50 |
| Mississippi | 15% | $11.50 | |
| Missouri | 10% | $11.00 | |
| Montana | 50% | $15.00 | |
| Nebraska | 20% | $12.00 | |
| Nevada | 30% | $13.00 | |
| New Hampshire | 0% | $10.00 | |
| New Jersey | 30% | $13.00 | |
| New Mexico | 25% | $12.50 | |
| New York | 28.5% | *See map for details | $12.85 |
| North Carolina | 12.8% | $11.28 | |
| North Dakota | 28% | $12.80 | |
| Ohio | 17% | $11.70 | |
| Oklahoma | 1.2% | $10.12 | |
| Oregon | 65% | 50¢/Cigar Tax Cap | $10.50 |
| Pennsylvania | 0% | $10.00 | |
| Rhode Island | 80% | 50¢/Cigar Tax Cap | $10.50 |
| South Carolina | 5% | $10.50 | |
| South Dakota | 35% | $13.50 | |
| Tennessee | 6.6% | $10.66 | |
| Texas | 0.15% | $10.02 | |
| Utah | 86% | $18.60 | |
| Vermont | 92% | $4/Cigar Tax Cap | $14.00 |
| Virginia | 10% | $11.00 | |
| Washington | 95% | 65¢/Cigar Tax Cap | $10.65 |
| West Virginia | 7% | $10.70 | |
| Wisconsin | 71% | 50¢/Cigar Tax Cap | $10.50 |
| Wyoming | 20% | $12.00 | |
| Washington D.C. | 67% | $16.70 | |
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