| Taxes |
Governments' Profit
on Cigarettes
Federal
State
City/County
|
Period covered |
Click here to learn more |
| Federal excise tax on cigarettes per pack |
39 cents per pack |
Current rate, as of last increase on January 1, 2002. |
National Pack Chart |
| Rate of federal excise tax increases |
Up 62.5 percent since 2000; up more than 75 percent since 1999 |
|
|
| Annual federal cigarette excise tax collections (gross) |
$7,235,000,000 annually |
In fiscal year ending June 30, 2006 |
Cigarette Tax and Payment Table |
| Estimated weighted average state cigarette excise tax |
78.5 cents per pack |
National average as of December 2005 |
National Pack Chart |
| Highest state cigarette excise tax |
$2.575 per pack
New Jersey |
As of July 1, 2006 |
Cigarette Tax and Payment Table |
| Annual state cigarette excise tax collections (gross) |
$13,964,000,000
annually |
In fiscal year ending June 30, 2005 |
Cigarette Tax and Payment Table |
| General state sales tax revenue on cigarette sales |
$3,675,000,000
annually |
In fiscal year ending June 30, 2005, when 44 states and the District of Columbia levied general sales taxes on the retail sale of cigarettes |
Cigarette Tax and Payment Table |
| Settlement Agreement payments to states |
47 cents per pack |
National average as of December 2006 |
National Pack Chart |
| Highest municipal cigarette tax rate |
$1.50 per pack
New York City |
In fiscal year ending June 30, 2005, nearly 500 cities, towns and counties imposed cigarette taxes. |
Cigarette Tax and Payment Table |
| Municipal cigarette tax collections |
$581,000,000
annually |
In fiscal year ending June 30, 2005, nearly 500 cities, towns and counties imposed cigarette taxes. |
Cigarette Tax and Payment Table |
| Total annual federal, state and municipal taxes on cigarettes (excluding MSA/settlement payments) |
$25,455,000,000
annually |
In fiscal year ending June 30, 2006 |
Cigarette Tax and Payment Table |
| Total government federal, state and city/county profit PER PACK of cigarettes (including MSA/settlement payments) |
$2.09 per pack, (52% of average retail price) |
National average as of Nov. 2006, including sales and local taxes |
National Pack Chart |
| Total government federal, state and city/county profit PER CARTON of cigarettes (including MSA/settlement payments) |
$20.90 per carton |
National average as of Nov. 2006, including sales and local taxes |
National Pack Chart |
| Total government federal, state and city/county profit PER CIGARETTE (including MSA/settlement payments) |
10.45 cents per cigarette |
National average as of Nov. 2006, including sales and local taxes |
National Pack Chart |
| Tobacco Settlement Payments |
| Master Settlement Agreement (MSA) payments (46 states) |
$45,801,838,919 |
Since the MSA was signed with 46 states in 1998 through FY 2006. |
MSA Payments |
| Payments to four separately settling states (MS, FL, TX and MN) |
$13,658,267,102 |
|
Payments to Separately Settling States |
| Source: The Tax Burden on Tobacco, Vol. 41 by Orzechowski and Walker, and statistics generated by R.J. Reynolds. |
