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Albany, February 21, 2025—If you sell, buy, or distribute cigarettes and tobacco products in New York, understanding the state’s excise taxes is crucial as of today. New York State and New York City impose steep taxes on cigarettes, while tobacco products face a complex rate structure. Are you a retailer or distributor wondering about the New York 2025 cigarette and tobacco taxes? Here’s what you need to know on February 21, 2025, to stay compliant and avoid penalties.
What’s the Tax on Cigarettes in New York?
New York levies excise taxes on all cigarettes sold or possessed in the state:
- State Excise Tax: $5.35 per pack of 20 cigarettes.
- New York City Local Excise Tax: An additional $1.50 per pack, bringing the combined rate to $6.85 per pack in NYC as of February 21, 2025.
These taxes aim to deter smoking while generating revenue, but they require careful compliance from businesses.
How Is the Cigarette Tax Paid?
Licensed cigarette stamping agents pay the excise tax when purchasing New York State tax stamps from the Tax Department. Stamps, affixed to the bottom of each cigarette pack, prove both state and city taxes (via joint stamps in NYC) have been paid. Agents also pay a prepaid sales tax at stamp purchase, which is passed to wholesalers and retailers. For details, see Form ST-133, Certificate of Prepayment of Sales Tax on Cigarettes.
When Do Cigarette Prices Change?
New York sets minimum wholesale and retail prices for cigarettes, subject to updates when manufacturer price changes or excise tax rates shift. On February 21, 2025, these prices remain tied to the current $6.85 per pack rate in NYC but stay alert for future adjustments. For more, check Publication 509, Minimum Wholesale and Retail Cigarette Prices.
What’s the Tax on Tobacco Products?
New York also taxes other tobacco products sold in the state:
- Cigars and Tobacco (excluding little cigars and snuff): 75% of the wholesale price.
- Little Cigars: $0.2675 per little cigar.
- Snuff: $2 per container of one ounce or less; $2 per ounce for larger containers, with proportional rates for fractions (e.g., $2.50 for a 1.25 oz. container).
These rates, effective on February 21, 2025, ensure broad taxation across tobacco categories.
How Is the Tobacco Tax Paid?
Distributors pay the excise tax when importing tobacco products into New York or arranging their import, ensuring compliance at the supply chain level.
What This Means for You on February 21, 2025
Wondering, “What are the cigarette taxes in New York today?” or “How do I comply with tobacco taxes in 2025?” Here’s your action plan:
- Verify Compliance: Ensure stamps are affixed to cigarette packs and review tobacco import processes to meet excise tax obligations.
- Stay Updated: Monitor Publication 509 for price changes
- Use Resources: Access forms, bulletins, and guidance on the New York State Tax Department website.
Businesses selling to Indian nations or reservations should also review the Oneida Nation Settlement Agreement and related TSB-Ms for special rules.
A Critical Step for Retailers and Distributors
On February 21, 2025, New York’s high cigarette and tobacco taxes underscore the state’s public health and revenue goals. “Compliance is non-negotiable,” said a Tax Department spokesperson. Whether you’re a retailer, wholesaler, or distributor, staying informed prevents costly penalties.
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