Indiana’s $2 Cigarette Tax Hike Takes Effect July 1

Indiana residents who smoke or vape will see higher prices starting July 1st, as a new law doubling the tax on cigarettes and other tobacco products takes effect. This marks the state’s first tax hike on these products in nearly 20 years. The tax on a pack of cigarettes will increase by $2, bringing the total state tax to $3 per pack.

Crucially, this tax increase applies to all tobacco products, including e-cigarettes (vapes) and chewing tobacco, which will also see their previous tax rates double. The measure was included in the state’s 2025 budget. Republican lawmakers, who had initially hesitated, ultimately passed the tax hike as a means to help offset a projected $2.4 billion budget shortfall. The increased tobacco and vape tax is estimated to generate an additional $400 million in annual revenue for the state.

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Matthew Ma

Marketing at Ecigator

With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.

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