The latest e-cigarette tax policy in the United States

The United States has not yet imposed a federal tax on e-cigarette products, but states have enacted their own e-cigarette tax policies. Currently, 33 states, the District of Columbia, the Commonwealth of Puerto Rico, and some cities and counties impose taxes on e-cigarette products.
The following is an inventory of the tax policies of each state in the United States (if there are any errors or omissions, please correct them in the comments section):
1. California
California’s wholesale tax on “other tobacco products” is set annually by the state Fairness Commission. It reflects the percentage of all taxes levied on cigarettes. That would have equated to 27 percent of the wholesale cost, but the e-cigarette tax increased dramatically after Proposition 56 raised the cigarette tax from $0.87 to $2.87 per pack. For the year beginning July 1, 2024, the tax on all nicotine-containing products is 52.92 percent of the wholesale cost.
On July 1, 2022, California will increase the retail tax on top of the existing wholesale tax by imposing a 12.5 percent tax on all nicotine-containing e-cigarette products, including products purchased online from retailers in other states.

2. Colorado
Colorado currently imposes a 56% tax on all nicotine-containing e-cigarette products, including bottled e-liquid. Approved by Colorado voters in 2020, the tax is introduced at a 30 percent rate in 2021, rising to 35 percent in 2022 and 50 percent in 2023. In 2024 it will rise to 56% and in 2027 to 62%.
For products designated by the FDA as modified risk (MRTP), the tax rate can be reduced by 50%, but no e-cigarette product manufacturers currently apply for MRTP authorization.

3. Connecticut, US state
The state imposes a two-tier tax on nicotine-containing e-cigarette products: a $0.40 per milliliter tax on e-liquid in closed-end products and a 10% wholesale tax on open-end products, including bottled e-liquid and open-end devices.

4. Delaware, US state
There is a tax of $0.05 per milliliter of nicotine containing e-liquid.

5. Georgia, US state
A tax of $0.05 per milliliter on e-liquid in closed system products and a 7% wholesale tax on open system equipment and bottled e-liquid. The tax applies to products with or without nicotine.

6. Hawai, US state
A 70% wholesale tax on all e-cigarette products.

7. Illinois
A 15% wholesale tax on all e-cigarette products. The tax applies to products with or without nicotine. In addition to the statewide tax, both Cook County and the City of Chicago (which is located in Cook County) have their own e-cigarette taxes:
Chicago imposes a $1.50 per unit tax on any e-cigarette product containing nicotine (bottled e-liquid or pre-filled devices), And a $1.20 per milliliter tax on the liquid itself (Chicago e-cigarette users must also pay a $0.20 per milliliter Cook County tax).
Cook County imposes a $0.20 per milliliter tax on products containing nicotine.

8. Indiana, US state
A 15% tax on the total retail value of all e-cigarette products (whether or not they contain nicotine) and a 15% wholesale tax on closed-system products.

9. Kansas
All e-liquids are subject to a $0.05 per milliliter tax, which applies to products with or without nicotine.

10. Kentucky, US state
A 15% wholesale tax on bottled e-liquids and open system equipment and a $1.50 per unit tax on pre-loaded cartridges and cartridges. The tax applies to products with or without nicotine.

11. Louisiana, US state
There is a $0.15 per milliliter tax on nicotine containing e-liquid.

12. Maine, US state
A 43% wholesale tax on all e-cigarette products. The tax applies to products with or without nicotine.

13. Maryland, US state
A 20% retail tax on all open-end e-cigarette products (including nicotine-containing e-liquids) and a 60% tax on nicotine-containing e-liquid in containers (returnable or disposable) of less than 5 ml.
In addition to the state tax, Montgomery County imposes a 30 percent wholesale tax on all e-cigarette products, including devices that do not contain liquid.

14. Massachusetts, US state
A 75% wholesale tax on all e-cigarette products. The tax applies to products with or without nicotine. The state law requires consumers to show evidence that their e-cigarette products have been taxed or they will be confiscated, with a $5,000 fine for the first offense and a $25,000 fine for subsequent offenses.

15. Minnesota
In 2011, Minnesota became the first state in the United States to impose a tax on e-cigarettes. In Dazhou, Minnesota became the first state to impose a tax on e-cigarettes. The tax was initially set at 70 per cent of wholesale costs and has now been increased to 95 per cent. In the case of canisters of e-cigarette oil made in Dazhou, Minnesota, only the nicotine itself is taxed.

16. Nebraska, US state
Nebraska has two levels of tax, depending on the size of the e-liquid container (or pre-filled e-cigarette). For products with less than 3 ml of smoke oil, the tax is $0.05 / ml. A 10% wholesale tax is levied on products containing 3 ml or more. The tax applies only to products containing nicotine.
In addition to the state tax, e-cigarette products in Omaha City are subject to a 3% tobacco tax.

17. Nevada, US state
A 30% wholesale tax on all e-cigarette products. The tax applies to products with or without nicotine.

18. New Hampshire, US state
A wholesale tax of 8% on open-system e-cigarette products, including nicotine-containing liquids, and $0.30 per milliliter on closed-system products.

19. New Jersey
New Jersey imposes a $0.10 per milliliter tax on nicotine e-liquids, 10 percent of the retail price on bottled e-liquids and 30 percent on the wholesale price of devices.

20. New Mexico, US state
New Mexico imposes a two-tier tax on e-liquid: a 12.5% wholesale tax on bottled e-liquid; A levy of $0.50 per disposable e-cigarette or cartridge with a capacity of less than 5 milliliters. The tax applies to products with or without nicotine.

21. New York state
A 20% retail tax on all e-cigarette products. The tax applies to products with or without nicotine.

22. North Carolina, US state
There is a tax of $0.05 per milliliter of nicotine containing e-liquid.

23. Ohio
A tax of US $0.10 per milliliter of nicotine-containing e-liquid is levied.

24. Oregon
A 65% wholesale tax on all non-cannabis “inhaled delivery systems,” including hardware and its “components” (including e-liquid). The tax also covers heated tobacco products such as IQOS, but not all e-cigarette products sold at licensed cannabis dispensaries. The tax applies to products with or without nicotine.

25. Pennsylvania
A 40% wholesale tax on e-liquid and equipment containing e-liquid. The tax applies to products with or without nicotine.

26. Utah
A 56% wholesale tax on e-liquids and pre-filled e-cigarettes. The tax applies to products with or without nicotine.

27. Vermont, US state
A 92% wholesale tax on e-cigarette oils and equipment. The tax applies to products with or without nicotine.

28. Virginia, US state
A tax of US $0.11 per milliliter is levied on nicotine containing e-liquid.

29. Washington, US State
Washington State has a two-tiered tax: $0.27 per milliliter for cartridges and e-liquids in cartridges smaller than 5 milliliters, and $0.09 per milliliter for liquids larger than 5 milliliters. These taxes apply to products with and without nicotine.

30. West Virginia, US state
All e-cigarette oils are subject to a tax of $0.075 per milliliter. The tax applies to products with or without nicotine.

31. Wisconsin, US state
A tax of $0.05 per milliliter on e-liquid in closed-system products. The tax applies to products with or without nicotine.

32. Wyoming, US state
A 15% wholesale tax on all e-cigarette devices and nicotine-containing e-liquid.

33. District of Columbia, USA
The U.S. capital, the District of Columbia, classifies e-cigarettes as “other tobacco products” and taxes the wholesale price of e-cigarettes at a rate tied to the wholesale price of cigarettes. At present, the wholesale tax on e-cigarettes and nicotine e-liquids is 79%.

34. Autonomous State of Puerto Rico
A tax of $0.05 per milliliter on e-liquids and $3 per unit on e-cigarettes.

35. Alaska
Alaska does not have a state tax on e-cigarettes, but some cities in the state are taxing them: Juneau Borough, Northwest Arctic Borough and Petersburg Borough have the same 45% wholesale tax on nicotine-containing products;
The Borough of Anchorage imposes a 55% wholesale tax;
The municipality of Matanuska-Susitna imposes a 55% wholesale tax.

36. Rhode Island
From January 1, 2025, the state will impose a 10% wholesale tax on open e-cigarette products and bottled e-liquid, and a $0.50 per milliliter tax on closed devices containing liquid.