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Last Updated: 6/22/2017

Tobacco Tax

​Distributors pay the Tobacco Tax to the Minnesota Department of Revenue on tobacco products other than cigarettes (which are subject to the Cigarette Tax).

The tax applies to all tobacco products in Minnesota (except cigarettes as noted above). The tax is charged when a distributor:

  • brings tobacco products into Minnesota or has them transported into Minnesota from outside the state;
  • makes or manufactures tobacco products in Minnesota for sale in the state; or
  • ships or transports tobacco products to retailers in Minnesota for sale by those retailers.

Tobacco Tax

The excise tax on tobacco is equal to 95 percent of the wholesale sales price of the tobacco product.  

Premium Cigars

The excise tax on premium cigars is 95 percent of the wholesale sales price or $0.50 per cigar, whichever is less.

A premium cigar:

  • is hand-constructed;
  • has a wrapper made entirely from whole tobacco leaf;
  • has a filler and binder made entirely of tobacco, except for adhesives or other materials used to maintain size, texture, or flavor; and
  • has a wholesale price of $2.00 or more.

Note: The Tobacco Tax changes contained in Minnesota Laws 2017, 1st Special session, Chapter 1, are the subject of on-going negotiations. We will provide updates as appropriate. 

Moist Snuff 

The excise tax on "moist snuff" is 95 percent of the wholesale sales price or $3.04 per container, whichever is greater.

If the moist snuff container is more than 1.2 ounces

The tax on any container weighing more than 1.2 ounces is the greater of:

  • 95 percent of the wholesale sales price of the moist snuff, or
  • $3.04 multiplied by the ounces and divided by 1.2

Moist snuff is any finely cut, ground, or powdered smokeless tobacco that is intended to be placed or dipped in the mouth.

A container of moist snuff is a consumer size can, package, or other container that is marketed or packaged for sale to a retail purchaser. ​

Tobacco Use Tax

If you bring  tobacco products into the state, but didn't pay the Minnesota Tobacco Tax when you purchased the products, you might need to pay the tax directly to Minnesota. See Tobacco Use Tax.