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.

Electronic Cigarette

Rate
92% of the wholesale price.

Tobacco Tax

This tax is imposed on all tobacco products at the wholesale level, except cigarettes, nonstamped little cigars, and roll your own tobacco.

Cigar Tax

Distributors will use form CTT-646 to report all cigar activity for the prior month. Tax rates for cigars fall under the following 3 categories:

  • 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