New Jersey Hikes Taxes on Cigarettes and Vaping Products

New Jersey Vape Tax

Smokers and vapers in New Jersey will now be paying more as tax increases on tobacco and nicotine products go into effect today, August 1st. The new rates are part of Governor Phil Murphy’s fiscal year 2026 budget recommendations.

The tax on a pack of 20 cigarettes will rise by 30 cents, bringing the new rate from $2.70 to $3.00 per pack. This increase alone means a pack-a-day smoker will spend an extra $109.50 per year on cigarette taxes (Note: The original article’s calculation of $1,095 appears to be a typo; 30 cents x 365 days = $109.50).

Taxes on vaping products are also seeing a significant jump. The tax on liquid nicotine, such as in pre-filled vape pods, will triple from 10 cents to 30 cents per fluid milliliter. For container e-liquid (bottled vape juice), the tax will increase from 10% to 30% of the listed retail sale price.



The cigarette tax increase is projected to generate an additional $41 million in state revenue, while the vape tax hike is expected to bring in another $10 million. The new tax rates apply to all relevant products in the possession of distributors, wholesalers, and retailers licensed in New Jersey.

Matthew Ma
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