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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 the tax has not been paid by a distributor. 

Registration requirements: By September 1 2026, distributors, wholesale dealers, and retail dealers that currently import or sell alternative nicotine products in New York State must obtain a license or registration to sell tobacco products, 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 Form MT-200.5, Alternative Nicotine Products Floor Tax Return, and pay the floor tax due by September 21, 2026. 

For additional information, see:

  • N-26-2, Alternative Nicotine Products Subject to Tobacco Products Tax and Floor Tax Due.
  • MT-200.5 and MT-200.5-I, Instructions for Form MT-200.5.

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.

Register for sales tax

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.

Register a retail business

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.

Resources

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