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Last Updated: 3/22/2016

Cigarette Tax

Who must file and pay the Cigarette Tax?

Distributors pay this tax when they purchase Cigarette Tax stamps from the Minnesota Department of Revenue. All packages of cigarettes sold in Minnesota must have a Minnesota Cigarette Tax stamp on them.

The Cigarette Sales Tax is also included in the stamp price. (See Cigarette Sales Tax.)

What are the Cigarette Tax and Cigarette Sales Tax rates?

The current rates, provided in the table below, were effective Jan. 1, 2016.

Tax Type ​Tax Rate Per Carton ​Tax Rate Per 20-Pack Tax Rate Per Cigarette
​​Cigarette Tax ​$30.00 ​​$3.00 ​$0.150
​Cigarette Sales Tax ​$5.43 ​​$0.543 ​$0.02715
Total ​​$35.43 ​$3.543 ​$0.17715

Cigarettes or little cigars weighing 3 to 4.5 pounds per thousand are also taxed as cigarettes.

Fee in Lieu of Settlement

Cigarette brands purchased from manufacturers who haven't entered into a tobacco agreement with the state of Minnesota are also subject to an additional fee to help the state recover some of the public health care costs related to smoking. (See Fee in Lieu of Settlement.)

When is the return due?

You must file a return by the 18th of the month to report the previous months' sales in Minnesota. You must file even if you had no sales to report.

How do I file?

You can file

What are my payment options?

You can pay this tax:

  • Electronically through e-Services, by debit or credit card, or by ACH credit
  • By check using a payment voucher, unless your business is required to pay electronically

See Make a Payment for details.

Cigarette Use Tax 

If you bring more than 200 cigarettes into the state in a month, but didn't pay the Minnesota cigarette taxes and fees when you purchased the cigarettes, you must pay the taxes and fees directly to us. See Cigarette Use Tax.