What is an e-cigarette?
An electronic cigarette, or e-cigarette, simulates the act of tobacco smoking. It produces an inhaled mist with the physical sensation, appearance – and often the flavor and nicotine content – of inhaled tobacco smoke. E-cigarettes are taxable as tobacco products.
What is taxable?
Tobacco products are subject to the Tobacco Tax, calculated on the wholesale cost of any product containing nicotine or tobacco. For example, the Tobacco Tax on an e-cigarette starter kit is calculated on only the nicotine cartridge value.
Note: The state law that defines taxable tobacco products was changed on Aug. 1, 2010, to include any product – such as e-cigarettes – that is derived from tobacco and intended for human consumption. For more information: