Tax Facts – History

Cigarettes are among the most heavily taxed consumer products in the United States.

Federal, state and local governments collect more money from the sale of cigarettes than retailers, wholesalers, farmers and manufacturers do combined.

In FY2013 alone, between federal, state and local taxes and tobacco settlement payments, the government raked in more than $43.9 billion:

  • $14.2 billion in federal excise taxes
  • $16.8 billion in state excise taxes
  • $8.5 billion in state settlement payments
  • $4.0 billion in general sales taxes
  • $425.7 million in local imposed taxes

Since FY1997, the weighted state average tax has gone up 287.5 percent – from 32.1¢ to 124.4¢ in FY2013.

From 1997 to 2013, there have been 130 state excise tax increases, including in the District of Columbia.

Total state excise tax revenues have risen 130 percent, from $7.3 billion in FY1997 to $16.8 billion in FY2013.

Cigarette Retail and Taxes

  • As of November 2013, the average retail price of a package of 20 cigarettes (full-priced brands) was $6.19, up from $4.53 in 2007, including federal, state and municipal excise taxes.
  • Payments to the government, on average, for 44.4 percent of the retail price of cigarettes.
  • Around 65 percent of all tobacco sales occur in the nation’s 151,282 convenience stores, according to a National Association of Convenience Stores (NACS) study.
  • The average convenience store sells about $600,000 worth of cigarette each year. In addition, cigarette sales are the number one in-store item for these stores, comprising about 40 percent of in-store revenues.

After years of huge tax increases, enough is enough.

Act now. Don't let government raise cigarette taxes yet again.