Cigarette and tobacco products tax: Start a business

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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Welcome!

Whether you're starting a new business, purchasing an existing one, or adding a new product or service, we’re here to help guide you through everything you’ll need to do business with New York State.

Step 1: Visit New York Business Express—New York's new comprehensive guide for all your business and professional needs. Quickly and easily find information related to licensing, regulation, incentives and support to start or grow your business.

Visit Business Express

Step 2: Are you a registered sales tax vendor? If not, you must register for sales tax purposes before any cigarette or tobacco product license can be approved. Sales tax registration is required even if your business will not actually collect or pay sales tax to the Tax Department.

Step 3: Once you're registered for sales tax, you’re ready to apply for the licenses and registrations you’ll need. Select the drop down for the type of business you will open.

Cigarettes

Cigarette retail dealers

Registration requirements for cigarette retail dealers

Every retail dealer of cigarettes in New York State, and every owner or operator of vending machines through which cigarettes are sold, must separately register each business location or vending machine. The registration fees are:

$300 for each retail location
$100 for each vending machine

Upon approval of your application, the Tax Department will send you Form DTF-720, Retail Dealer Certificate of Registration for Cigarette & Tobacco Products. Note: As a retail dealer, you only need one registration, even if you will be selling both cigarettes and tobacco products.

Your registration is valid only for the calendar year for which it is issued. You must apply for renewal on or before September 20th to renew your registration for the following year. For information on renewing your registration, see Filing and license and registration renewal requirements.

Retail dealers in New York City are required to obtain both a city and state registration certificate before selling cigarettes. For more information about obtaining a New York City Cigarette Retail Dealer License, contact the New York City Department of Consumer and Worker Protection .

Once you’ve received your license, view your filing requirements.

Cigarette wholesale dealers

Licensing requirements for cigarette wholesale dealers

You must be licensed as a wholesale cigarette dealer if you:

sell to retail dealers or other persons for resale, or
own, operate, or maintain one or more cigarette vending machines in, at, or upon premises owned or operated by any other person.

The license application fee for a wholesale cigarette dealer is $1,500. There is no application fee for a wholesale cigarette dealer who only operates vending machines.

For additional information regarding cigarette wholesaler licenses, see Form CG-100-V, Application for License as a Wholesale Cigarette Dealer Who Only Operates Vending Machines, and Form CG-100-W, Application for License as a Wholesale Cigarette Dealer Other Than Those Who Only Operate Vending Machines.

Once you’ve received your license, view your filing requirements.

Cigarette agents

Licensing requirements for cigarette agents and agent/wholesalers

You must be licensed as a cigarette agent to purchase and affix New York State cigarette tax stamps. Cigarette agent licenses may be issued to:

dealers (wholesalers or retailers) who:
- maintain separate warehousing facilities for receiving and distributing cigarettes and conducting their business, and
- have received commitments from at least two cigarette manufacturers whose aggregate market share is at least 40% of the New York State market;
importers, exporters, or manufacturers of cigarettes; and
certain other businesses dealing in unstamped cigarettes.

The license application fee for an agent only is $1,500. The application fee for an agent and wholesale dealer is $3,000.

For additional information regarding cigarette agent or agent/wholesaler licenses, see Form CG‑100‑A, Application for License as a Cigarette Agent or Agent/Wholesaler.

Once you’ve received your license, view your filing requirements.

Tobacco products

Tobacco products distributors

Appointment as a distributor of tobacco products

You must request appointment as a distributor of tobacco products if you:

import or cause to be imported into this state any tobacco products (other than cigarettes) for sale;
manufacture any tobacco products in this state, or
are located outside New York State and want to file returns and pay the tax due on any tobacco products that you sell, ship, or deliver from outside the state to any person in the state.

There is no fee to apply to be appointed as a distributor of tobacco products.

For additional information, see Form MT-202, Application for a License as a Wholesale Dealer of Tobacco Products or an Appointment as a Distributor of Tobacco Products, and Form MT-202-I, Instructions for Form MT-202.

Once you’ve received your license, view your filing requirements.

Tobacco products retail dealers

Registration requirements for tobacco products retail dealers

Every retail dealer of tobacco products in New York State, and every owner or operator of vending machines through which tobacco products are sold, must separately register each business location or vending machine. The registration fees are:

$300 for each retail location
$100 for each vending machine

Once you’ve received your license, view your filing requirements.

Tobacco products wholesale dealers

Licensing requirements for wholesale dealers of tobacco products

You must apply for a license as a wholesale dealer of tobacco products if you:

sell tobacco products to retail dealers or other persons for resale;
own, operate, or maintain one or more tobacco products vending machines in, at, or upon premises located within New York State which are owned or occupied by any other person; or
sell tobacco products to an Indian nation or tribe or to a reservation cigarette seller on a qualified reservation.

There is no fee to apply for a license as a wholesale dealer of tobacco products.

For additional information, see Form MT-202, Application for a License as a Wholesale Dealer of Tobacco Products or an Appointment as a Distributor of Tobacco Products.

Once you’ve received your license, view your filing requirements.

Resources

For more information

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

Important developments

Oneida Nation Settlement Agreement
TSB-M-14(1)M, (4)S, Federal Court Ratifies Settlement Agreement by the Oneida Nation, the State of New York, the County of Madison and the County of Oneida
Sales of cigarettes to Indian nations, tribes, or reservation cigarette sellers

Updated: July 9, 2026