Cigarette and Other Tobacco Products Tax

  • All cigarettes sold in New York City must bear a joint NYS/NYC tax stamp.
  • As of June 1, 2018, all other tobacco products (OTP) sold in NYC must include the NYC OTP tax. The tax must be paid by the wholesale dealers on sales of OTP to New York City retail dealers or other persons in New York City for purposes of resale.

Cigarette Tax

Who Must Pay This Tax?
The tax is paid by a stamping agent and passed along to consumers in the cost of each pack of cigarettes. The customer pays the cigarette tax as part of the purchase price.

Who is Exempt from the Tax?
No tax is owed on cigarettes under the following circumstances:

  • The use of two cartons (400 cigarettes) or less in New York City, if the user brings the cigarettes into the city for use, not for sale;
  • Cigarettes sold to the United States government;
  • Cigarettes sold to or by a voluntary unincorporated organization of the Armed Forces operating a place for the sale of goods pursuant to federal regulations;
  • Cigarettes sold to the State of New York, or any public corporation, or political subdivision of the state, not for resale;
  • Cigarettes possessed by an agent or wholesale dealer for sale to an out-of-city dealer, or for sale and shipment to a person in another state for use there; or
  • Cigarettes sold to the United Nations, its personnel, and certain qualified diplomatic personnel.

Other Tobacco Products (OTP) Tax

Who Must Pay This Tax?
This tax must be paid by the wholesale dealers on sales of OTP to New York City retail dealers or other persons in New York City for purposes of resale.

Who is Exempt from the Tax?
No tax is owed on other tobacco products sold to:

  • OTP wholesale dealers located within New York City;
  • dealers located outside of New York City, or for sale and shipment to a person in another state for use there;
  • the United States government;
  • a voluntary unincorporated organization of the Armed Forces operating a place for the sale of goods pursuant to federal regulations;
  • the State of New York, or any public corporation, or political subdivision of the state, not for resale; or
  • the United Nations, its personnel, and certain qualified diplomatic personnel.


Forms

Forms

You pay the Cigarette tax as part of the purchase price. However, there are applications and other forms for wholesale and retail cigarette vendors, stamping agents, and cigarette vending machine operators.

Tax Rates

Cigarette Tax Rates

The tax is imposed at a rate of 75 cents for each ten cigarettes or fraction of a group of ten, or $1.50 for a standard pack of 20 cigarettes. However, if a package of cigarettes contains more than 20 cigarettes, the rate of tax on the number cigarettes over twenty is 38 cents for each five cigarettes or any fraction of a group of five.

Other Tobacco Products Tax Rates

  • Cigar: $0.80 per individually packed cigar; for a package, $0.80 for the first cigar, plus $0.175 for each additional cigar
  • Little cigar: $1.09 per pack
  • Smokeless tobacco: $0.80 per 1.2 oz. plus an additional $0.20 for each 0.3 oz. or any fraction thereof in excess of 1.2 oz.
  • Snus: $0.80 per 0.32 oz. plus an additional $0.20 for each 0.08 oz. or any fraction thereof in excess of 0.32 oz.
  • Shisha: $1.70 per 3.5 oz. plus an additional $0.34 for each 0.7 oz., or any fraction thereof in excess of 3.5 oz.
  • Loose tobacco: $0.25 per 1.5 oz. package plus an additional $0.05 for each 0.3 oz. or any fraction thereof in excess of 1.5 oz.

Legal Authority

Local Law: Title 11, Chapter 13, Administrative Code
Enabling Act: Chapter 235 of the Laws of 1952

  • The interest rate on underpayments is the federal short-term rate plus seven percent.  Also the default rate for underpayments is seven and one half percent.
  • Certain taxpayers and tax preparers who file using tax software may be required to file electronically and could be subject to civil penalties for failure to do so.
  • Provisions detailing crimes applicable to the tax has been redefined to conform to recent New York State revisions.