Tax Facts - Federal
click to enlarge image Over 50% of the tax of a cigarette pack is taken by the U.S. Government. In Fiscal Year 2009, federal excise on cigarettes, $1.01 per pack, grossed $8,512,263,000 in tax. Since 1997, the federal government has received almost $77 billion in federal excise taxes. The unfortunate truth is the money does not always go where you expect.
Find out how your tax dollars are spent>>
Tobacco Taxes are Increasing
In April of 2009, the federal government significantly increased tobacco taxes. Below is a chart with those tax increases:
| Product | Tax Rate effective Mar. 31, 2009 |
Tax Rate effective Apr. 1, 2009 |
Floor Stocks Tax Rate (difference between the rates) |
| Small Cigarettes - Class A (Weigh 3 lbs. or less per 1,000) |
$19.50 per 1,000 equivalent to: $3.90 per carton $0.39 per pack |
$50.33 per 1,000 equivalent to: $10.066 per carton $1.0066 per pack |
$30.83 per 1,000 equivalent to: $6.166 per carton $0.6166 per pack |
| Large Cigarettes - Class B* (Weigh more than 3 lbs. per 1,000) |
$40.95 per 1,000 | $105.69 per 1,000 | $64.74 per 1,000 |
| Small Cigars (Weigh 3 lbs. or less per 1,000) |
$1.828 per 1,000 | $50.33 per 1,000 | $48.502 per 1,000 |
| Large Cigars (Weigh more than 3 lbs. per 1,000) |
20.719% of sales price but not to exceed $48.75 per 1,000 | 52.75% of sales price but not to exceed $0.4026 per cigar (or $402.60 per 1,000) | NOT PART OF FLOOR STOCKS TAX |
| Chewing Tobacco** |
$0.195 per pound | $0.5033 per pound | $0.3083 per pound |
| Snuff** |
$0.585 per pound | $1.51 per pound | $0.925 per pound |
| Pipe tobacco** |
$1.0969 per pound | $2.8311 per pound | $1.7342 per pound |
| Roll-your-own tobacco** |
$1.0969 per pound | $24.78 per pound | $23.6831 per pound |
| Cigarette papers*** |
$0.0122 per 50 | $0.0315 per 50 | $0.0193 per 50 |
| Cigarette tubes*** |
$0.0244 per 50 | $0.0630 per 50 | $0.0386 per 50 |
*If more than 6 ½ inches in length, the cigarettes are taxable at the rate prescribed for small cigarettes, counting each 2¾ inches, or fraction thereof, as one small cigarette.
**The tax rate is set forth per pound and a proportionate tax at the same rate applies to all fractional parts of a pound.
***The tax rate for less than 50 cigarette papers or cigarette tubes is not prorated. If more than 6 ½ inches in length, the cigarette papers or cigarette tubes shall be taxable at the rate prescribed for that product, counting each 2¾ inches, or fraction thereof, as one cigarette paper or cigarette tube, as appropriate.
