Cigars 101: Cigar Tax Rates by State
By Ruben Gonzalez
Duties, excise, and sales taxes make up the lion’s share of the price you pay when buying a premium cigar. In some cases, taxes are even higher than the cost to actually produce these high-quality aged and handcrafted works of art. In the Dominican Republic, cigar-producing Mecca, taxes are as high as 41.5%!!! Not to mention, how absurd the Cigar Tax by State in the USA can be. California and New York City perhaps being the highest cigar taxes in the US. See the chart below with a listing of the state and their corresponding cigar tax rate.
Taxes are a huge portion of the cost of a cigar, here’s how to avoid them
At Cigar Country, we operate under a duty- and sales-tax-free regimen. So, you can save HUGE on taxes alone. We can satisfy any order, BIG or small. These orders are delivered anywhere in the Dominican Republic by the NEXT DAY courier. And by anywhere, we mean home, office, or resort. It is important for people traveling internationally with cigars to know that the limit is 100 premium cigars per traveling adult without having to declare. If you wish to buy more than your allocation, Cigar Country offers free shipping to the USA and Puerto Rico. Enjoy these handmade delicacies anywhere!
Cigar Country offers a world-class experience:
- The widest selection of premium handmade Dominican cigars
- NEXT AND SAME DAY delivery via UPS to any location in DR and International Priority anywhere else
- FREE shipping on orders > $150
- Guaranteed best DUTYFREE prices on the market or your money back!!
Cigar Tax by State in the USA
This table contains the large cigar tax rates for each state in the US. Taxes are based on prices from retailers who purchase cigars directly from manufacturers and distributors. Every premium cigar imported to the U.S. is taxed at 52.75% of the wholesale price and capped at $40.26 per cigar.
The example price is the estimated price of a cigar with a manufacturer’s suggested retail price (MSRP) of $9.50 in each respective state. This is to show a real-world example of how taxes affect a cigar’s final price state-by-state. Keep in mind that this is only an estimate, as there is no exact science as retailers assess the tax to consumers in various ways.
Tax table
| State | Tax | Cap | Example Price ( $9.50 MSRP) | Source |
|---|---|---|---|---|
| Alabama | 4.05 cents/cigar | – | $9.59 | Link |
| Alaska | 75% | – | $16.63 | Link |
| Arizona | 21.8 cents/cigar | – | $9.94 | Link |
| Arkansas | 68% | $0.50 | $10.50 | Link |
| California | 56.93% | – | $14.91 | Link |
| Colorado | 50% | – | $14.25 | Link |
| Connecticut | 50% | $0.50 | $10.50 | Link |
| Delaware | 15% | – | $10.93 | Link |
| Florida | None | – | $9.50 | Link |
| Georgia | 23% | – | $11.69 | Link |
| Hawaii | 50% | – | $14.25 | Link |
| Idaho | 40% | – | $13.30 | Link |
| Illinois | 36% | – | $12.92 | Link |
| Indiana | 24% | – | $11.78 | Link |
| Iowa | 50% | $0.50 | $10.50 | Link |
| Kansas | 10% | – | $10.45 | Link |
| Kentucky | 15% | – | $10.93 | Link |
| Louisiana | 20% | – | $11.40 | Link |
| Maine | 43% | – | $13.59 | Link |
| Maryland | 15% | – | $10.93 | Link |
| Massachusetts | 40% | – | $13.30 | Link |
| Michigan | 32% | $0.50 | $10.50 | Link |
| Minnesota | 95% | $0.50 | $10.50 | Link |
| Mississippi | 15% | – | $10.93 | Link |
| Missouri | 10% | – | $10.45 | Link |
| Montana | 50% | – | $14.25 | Link |
| Nebraska | 20% | – | $11.40 | Link |
| Nevada | 30% | – | $12.35 | Link |
| New Hampshire | None | – | $9.50 | Link |
| New Jersey | 30% | – | $12.35 | Link |
| New Mexico | 25% | $0.50 | $10.50 | Link |
| New York City | 75% | – | $16.63 | Link |
| North Carolina | 12.85% | – | $10.72 | Link |
| North Dakota | 28% | – | $12.16 | Link |
| Ohio | 17% | $0.53 | $10.56 | Link |
| Oklahoma | 12 cents/cigar | – | $9.74 | Link |
| Oregon | 65% | $1 | $11.50 | Link |
| Pennsylvania | 7% | – | $9.50 | Link |
| Rhode Island | 80% | $0.50 | $10.50 | Link |
| South Carolina | 5.5% | – | $10.02 | Link |
| South Dakota | 35% | – | $12.83 | Link |
| Tennessee | 6.6% | – | $10.13 | Link |
| Texas | 1.1 cents/cigar | – | $9.52 | Link |
| Utah | 86% | – | $17.67 | Link |
| Vermont | 92% | $2 (Cigars Under $10)/$4 ($10+) | $13.50 | Link |
| Virginia | 20% | 2.25¢ | $11.40 | Link |
| Washington | 95% | $0.65 | $15.19 | Link |
| Washington D.C. | 5.75% | – | $9.50 | Link |
| West Virginia | 12% | – | $10.64 | Link |
| Wisconsin | 71% | $0.50 | $10.50 | Link |
| Wyoming | 20% | – | $11.40 | Link |
Source: Halfwheel – Last updated: Nov. 6, 2020.
Avoid high tax rates like New York City’s by shopping at Cigar Country. You can buy from a wide range of handmade cigars to choose for yourself or as a personalized gift to friends.
For any further questions or for more cigar tax questions be sure to contact Cigar Country via their contact form or live chat.