Cigarette and tobacco products tax

Tobacco Products Tax Extended to Alternative Nicotine Products – Floor Tax Due September 21, 2026

General Information: Effective September 1, 2026, the New York State tobacco products tax is extended to alternative nicotine products. Alternative nicotine products are generally products that contain nicotine but not tobacco and are intended for human consumption.

The tax is imposed at the rate of 75% of the wholesale price of the product and is generally paid by the distributor. However, wholesale dealers and retail dealers selling alternative nicotine products are liable for the tax on these products in their possession if it has not been paid by a distributor.

Registration Requirements: Distributors, wholesale dealers, and retail dealers that currently import or sell alternative nicotine products in New York State must be licensed or registered to sell tobacco products by September 1, 2026, unless they are already licensed or registered with the Tax Department to sell tobacco products.

Floor tax: Any business selling alternative nicotine products must:

take an inventory of the units of alternative nicotine products in their possession as of 11:59 p.m. Eastern Standard Time on August 31, 2026, and
file an alternative nicotine products floor tax return and pay the floor tax due by September 21, 2026.

The floor tax return will be made available on the Tax Department’s website before September.

For additional information, see N-26-2, Alternative Nicotine Products Subject to Tobacco Products Tax and Floor Tax Due.

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Information

About cigarette and tobacco products

What is the tax on cigarettes?

New York State and New York City impose an excise tax on all cigarettes possessed in the state for sale.

The state excise tax rate is $5.35 per package of 20 cigarettes.
The New York City local excise tax is $1.50 per package of 20 cigarettes, bringing the combined tax rate for a package of 20 cigarettes purchased in New York City to $6.85.

How is the tax paid?

The excise tax is paid when a licensed cigarette stamping agent purchases New York State tax stamps from the Tax Department. As evidence of payment of the state tax, stamps must be affixed to the bottom of each pack of cigarettes sold in New York State. A joint New York State and New York City tax stamp is evidence that both the state and city excise taxes were paid.

In addition to the excise tax, the agent pays a prepaid sales tax at the time the cigarette tax stamps are purchased and passes that tax on to wholesalers and retailers. For more information on the prepaid sales tax, see Form ST-133, Certificate of Prepayment of Sales Tax on Cigarettes.

When are minimum wholesale and retail cigarette prices changed?

New York State establishes minimum resale prices for sales of cigarettes at the wholesale and retail levels. Minimum wholesale and retail selling prices are subject to change when a manufacturer price change or cigarette excise tax rate change occurs.

For additional information regarding cigarette price changes and minimum pricing, see Publication 509, Minimum Wholesale and Retail Cigarette Prices.

What is the tax on tobacco products?

New York State imposes an excise tax on tobacco products possessed in the state for sale at the following rates:

75% of the wholesale price on cigars and tobacco products (other than little cigars and snuff);
$0.2675 for each little cigar;
$2 per container of snuff with one ounce or less; and
$2 per ounce of snuff and a proportionate rate on any fractional amount for containers with more than one ounce (for example, the tax on a 1.25 oz. container would be $2.50).

How is the tax paid?

The tax is paid by a distributor when the distributor imports tobacco products into this state or causes them to be imported.

Additional information

If you are starting a business that will sell cigarettes or tobacco products, see Get started now.

If you are licensed or registered to sell cigarettes or tobacco products and need information about filing requirements and license and registration renewal, see Filing requirements and license and registration renewal.

Important references

Resources

Cigarette and tobacco products tax forms and instructions (current year) or (prior years and periods)
Cigarette and tobacco products tax TSB-Ms
Cigarette and tobacco products publications and tax bulletins
Registered Retail Dealers of Cigarettes and Tobacco Products and Vapor Products
Licensed Cigarette Stamping Agents, Wholesale Dealers of Cigarettes, Distributors of Tobacco Products and Licensed Wholesale Dealers of Tobacco Products
New York State Department of Health A Guide for Retail Tobacco and Vapor Product Dealers and New York State's Youth Access Tobacco Control Laws (Public Health Law Article 13-F)
New York State Department of Health Vending Machines and New York State's Youth Access Tobacco Control Laws (Public Health Law Article 13-F)
New York State Department of Health Tobacco- and Vaping-Related Signage, Guidance and Materials

Updated: July 9, 2026