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Last Updated: 5/30/2017


An electronic cigarette or e-cigarette is a device that simulates smoking tobacco. In Minnesota, e-cigarettes and e-juice which contain nicotine derived from tobacco meet the definition of a tobacco product found in (Minnesota Statutes, section 297F.01, subdivision 19). 

E-cigarettes are Taxable

E-cigarettes and e-juice are considered tobacco products and are subject to the Tobacco Tax, which is currently 95 percent of the wholesale cost of any product containing or derived from tobacco. For example, the Tobacco Tax on an e-cigarette starter kit is calculated on the total cost unless the nicotine cartridges are sold separately and then the tax would only be on the nicotine cartridge value. Similarly, a disposable e-cigarette may have the tax calculated on its nicotine cartridge value if the cartridge is replaceable.

Printable handout: E-cigarettes are Subject to Minnesota Tobacco Excise Tax


Subject to Tobacco Excise Tax

​One time use e-cigarette


​Reusable/refillable device & components


​Cartridges/e-juice containing nicotine


​Cartridges/e-juice with 0% nicotine



E-cigarettes in Minnesota

​I am a…

​So I...

​If I don't, then...


​Pay Tobacco Tax on all e-cigarette purchases that contain nicotine derived from tobacco.

​I will be assessed tax, penalty and interest on any unreported purchases. My license from the commissioner of revenue may be revoked. I may be criminally prosecuted.


​Purchase e-cigarettes from distributors licensed by the State of Minnesota. Collect and remit sales tax on e-cigarette sales.

​My e-cigarette products could be seized as contraband or I could be assessed tax, penalty and interest. My license from the county or city government may be revoked.

I may be criminally prosecuted.


​Pay Tobacco Consumer Use Tax on all e-cigarettes that are not purchased through a retailer located in Minnesota. This includes e-cigarettes purchased online See Tobacco Consumer Use Tax.

​I will be assessed tax, penalty and interest as information on my purchase becomes available to the commissioner of revenue.

I may be criminally prosecuted.

​County or city government

​License retailers who sell e-cigarettes and e-juice.

​Not applicable.