Tax Facts - Federal


The federal excise on cigarettes, 39¢ per pack, grossed more than $7.3 billion in tax revenue for fiscal year 2007.


Average Cigarette Profits
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In 2007, Congress considered a 61¢ per pack increase in the Federal Excise Tax (FET) on tobacco to fund the State Children’s Health Insurance Program (SCHIP). However, the tax failed and Congress extended SCHIP through March 2009 without increasing the federal excise tax. The House of Representatives plans to revisit the issue on January 23, 2009 when it again will attempt to override the President's veto of SCHIP expansion.

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