In 2024, VapeTM remains at the forefront of the vaping industry, especially in tax compliance and regulatory insight. This guide explores the nuances of vaping taxes across the United States and provides facts and clarity on how different tax structures impact consumers, businesses, public health, and the industry at large. Taxes on vaping products are steadily increasing in rate and prevalence, and understanding tax laws and regulations is essential to the success of a business that wishes to participate in this space.
For businesses operating or considering vending machines for e-cigarettes:
Laws are subject to frequent change. This document reflects generally available information as of early 2025 (with references to pending 2025 legislation where noted). Always verify with official state statutes and recent legislative updates.
The FDA enforces a minimum age of 21 for tobacco/nicotine products nationwide. FDA rules prohibit vending machines for e-cigarettes in any venue accessible to persons under 21, effectively requiring adult-only locations or lock-out devices.
States use various terms: “tobacco products,” “vapor products,” “electronic nicotine delivery systems (ENDS),” “alternative nicotine products,” etc. The column “Definition” highlights whether e-cigs are lumped in with tobacco for licensing/tax, or treated as a separate category.
Some cities impose stricter rules (e.g., total bans on vending machines). This document focuses on state-level laws but notes major local bans where particularly impactful.
This is an informational summary. For specific compliance guidance, consult an attorney or your state’s regulatory authorities.
As of mid-2024, 32 states and the District of Columbia have implemented excise taxes on vaping products. VapeTM breaks down these taxes to help you navigate the complex landscape:
Ad Valorem Taxes
Volume-Based Taxes (Ad Quantum)
Bifurcated Tax Systems
High taxes can discourage consumers from switching from traditional cigarettes to vaping products, which are widely considered a less harmful alternative. For instance, research indicates that Minnesota’s 95% tax may have prevented over 32,400 smokers from transitioning to vaping, underscoring the potential downside of aggressive tax policies on public health.
Below is a comprehensive list of vaping tax rates across U.S. states. Staying informed on each state’s rates is crucial for compliance and optimizing costs:
Here’s a detailed list of vaping tax rates across all U.S. states as of November 2024:
| State | Vape Tax/ E-Cig Tax | Is Non-Nicotine E-Liquid Taxable? |
|---|---|---|
| Alabama | no tax | No |
| Alaska | no tax | No |
| Arizona | no tax | No |
| Arkansas | no tax | No |
| California | 52.92% | No |
| Colorado | 56% | No |
| Connecticut | 10% | No |
| Delaware | 0.05/ml | No |
| District of Columbia | 79% | No |
| Florida | no tax | No |
| Georgia | 0.05/ml | Yes |
| Hawaii | 70% | Yes |
| Idaho | no tax | No |
| Illinois | 15% | Yes |
| Indiana | 15% | Yes |
| Iowa | no tax | No |
| Kansas | $0.05/ml | Yes |
| Kentucky | 15% | Yes |
| Louisiana | $0.15/ml | No |
| Maine | 43% | Yes |
| Maryland | 20% | Yes |
| Massachusetts | 75% | Yes |
| Michigan | no tax | No |
| Minnesota | 95% | No |
| Mississippi | no tax | No |
| Missouri | no tax | No |
| Montana | no tax | No |
| Nebraska | $0.05/ml | No |
| Nevada | 30% | Yes |
| New Hampshire | 8% | No |
| New Jersey | 10% | No |
| New Mexico | 12.50% | Yes |
| New York | 20% | Yes |
| North Carolina | $0.05/ml | No |
| North Dakota | no tax | No |
| Ohio | $0.10/ml | No |
| Oklahoma | no tax | No |
| Oregon | 65% | Yes |
| Pennsylvania | 40% | Yes |
| Rhode Island | no tax | No |
| South Carolina | no tax | No |
| South Dakota | no tax | No |
| Tennessee | no tax | No |
| Texas | no tax | No |
| Utah | 56% | Yes |
| Vermont | 92% | Yes |
| Virginia | $0.11/ml | No |
| Washington | $0.09/ml | Yes |
| West Virginia | $0.075/ml | Yes |
| Wisconsin | $0.05/ml | Yes |
| Wyoming | 15% | No |
This diversity in tax rates underscores the varying priorities among states. While some states emphasize harm reduction by adopting lower taxes on vaping products, others impose high taxes, potentially aiming to curb youth usage or generate significant state revenue.
This detailed breakdown of tax rates is essential for businesses and consumers alike to understand local regulations.
As a leader in the vaping space, VapeTM advocates for balanced taxation that supports public health and reasonable revenue generation. Lowering taxes on less harmful options, particularly open systems, could better incentivize smokers to switch. Overly high taxes, however, risk driving consumers back to traditional cigarettes or even to illicit markets, counteracting public health goals.
At VapeTM, we recognize the importance of informed tax policies in shaping a responsible and sustainable vaping industry. Our commitment to compliance, consumer education, and harm reduction guides everything we do. As states continue to evolve their tax regulations, VapeTM remains your go-to resource for the latest updates and insights into vaping industry compliance and best practices.
Stay tuned to VapeTM for industry-leading guidance on vaping regulations, and connect with us for updates on tax rates, policy changes, and industry trends.
