Cigarette and Tobacco Tax Rates

Cigarette Tax

This tax is imposed on all cigarettes, including roll-your-own and little cigars, held in or to be sold in Vermont by any person. A license to sell in Vermont is required. Cigarettes and little cigars sold in Vermont must have a Vermont stamp affixed to the package. Stamps are purchased through the Vermont Department of Taxes. The tax on roll-your-own is $0.154 per cigarette equivalent (one cigarette=.0325 ounce of tobacco) or $4.74 per ounce.

Rate
$3.08 per 20 pack ($3.85 per 25 pack) effective July 1, 2015 2.3 percent prepayment discount available

Snuff Tax

This tax is imposed on tobacco products which are not intended to be smoked, have a moisture content of no less than 45% or are not offered in individual single dose or single-use units.

Rate
$2.57 per ounce

New Smokeless Tobacco

This tax is imposed on any tobacco product which is not intended to be smoked and has a moisture content of less than 45%, or is offered in individual single-dose tablets or other discrete single-use units.

Rate
The tax is $2.57 per ounce, or if packaged in quantities of less than 1.2 ounces, $3.08 per package.

Tobacco Tax

This tax is imposed on all tobacco products at the wholesale level, except cigarettes, little cigars, roll your own tobacco, snuff or new smokeless tobacco. A license to sell in Vermont is required.

Rate
92% of the wholesale price, excluding cigars. Distributors will use Schedule B of Form TO-641 to report all cigar activity for the prior month.
  • Category I -  Wholesale price of $2.17 or less=92% of wholesale cost
  • Category II - Wholesale price between $2.18-$9.99=$2.00 per cigar
  • Category III - Wholesale price $10.00 and greater=$4.00 per cigar
     

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Contact Us

Commissioner Kaj Samsom
133 State Street | Montpelier, VT 05633
(802) 828-2505

Taxpayer Assistance Window
Located on the 1st Floor
Service Hours: 7:45 a.m. - 4:30 p.m. Monday - Friday

Contact a Specific Tax Section