Proposed State Tax Bills Would Make Vaping More Expensive

By Jim McDonald

Table of Contents

1. Current Active Vape and Nicotine Pouch Tax Bills

2. We Need Your Help

Vaping has become a key target for state legislators across the U.S. As of March 25, 2025, 33 states, along with Washington, D.C., Puerto Rico, and various local governments, have already imposed taxes on vapor products. These taxes vary, from a per-milliliter charge on e-liquids to wholesale percentage-based taxes that increase retail prices significantly. Some states have gone as high as 92% wholesale tax, making vaping more expensive than smoking in some areas.

This year’s legislative session has seen a surge in proposed vape tax bills, with at least 17 states introducing new taxes, tax hikes, or attempts to equalize nicotine product taxation across all forms, including nicotine pouches.

Current Active Vape and Nicotine Pouch Tax Bills

Here are some of the currently active vape tax bills introduced as of March 13, 2025:

• Alaska: SB 24 & HB 49 – 25% retail tax on closed vape products (pods/disposables).

• Arizona: HB 2778 – 50% wholesale tax.

• Connecticut: SB 792 – 75% wholesale tax. SB 427 – Equalizes tax rates across all nicotine products.

• Georgia: HB 84 – 15% wholesale tax on all vapor products.

• Idaho: HB 314 – 3 cents per mL tax on e-liquids.

• Illinois: SB 1314 – Increases wholesale tax to 36%. HB 3606 & SB 2338 – Increase wholesale tax to 45%.

• Iowa: SF 475 – $1.15 per pod/cartridge; 15% retail tax on refillable devices and e-liquids; 6.8 cents per nicotine pouch.

• Massachusetts: HB 1 – Extends existing 75% tax to synthetic nicotine.

• Montana: HB 525 – 50% wholesale tax on vapes + PMTA registry. (CASAA Call to Action).

• Nebraska: LB 712 – Changes existing tax to 40% wholesale (CASAA Call to Action).

• New Hampshire: HB 290 – Equalizes closed and open system tax at 65% wholesale.

• New Mexico: SB 20 – Increases existing tax to 67.5% wholesale.

• New York: A 274 – Increases retail vape tax from 20% to 48%.

• South Dakota: SB 194 – 45% wholesale tax.

• Tennessee: SB 763 / HB 968 – 7 cents/mL on closed systems, 10% wholesale tax on open products (CASAA Call to Action).

• Washington: HB 1416 – 30 cents per mL tax on bottles under 5mL; 10 cents/mL on larger bottles (includes zero-nicotine).

• West Virginia: HB 2518 – Repeals all existing vape taxes. HB 2762 – 7.5 cents/mL wholesale tax.

Some of these bills may not advance, but others pose a serious threat. Those marked with CASAA Call to Action require immediate consumer responses to push back against unfair taxation.

We Need Your Help

Vape advocacy groups like CASAA work hard to fight these tax increases, but consumer action is critical. If you live in a state with proposed tax hikes, contact your legislators and express your opposition. Many bills are stopped before they gain traction when enough people push back early.

You can find your state and federal representatives using CASAA’s legislator lookup tool.

About the Author

Jim McDonald has been vaping for over 13 years and is an expert in political and legal challenges, tobacco control, and consumer advocacy. As a CASAA board member, he fights against anti-consumer vape laws to protect harm reduction alternatives. Follow him on Twitter @whycherrywhy.