INDIANA – Smokers across Indiana will see the price of cigarettes increase by $1 per pack starting July 1, as the state implements its first tobacco tax hike in nearly two decades.
This increase will bring the total tax on a pack of cigarettes to $2, effectively doubling the previous amount.
Indiana lawmakers approved the tax increase earlier this year. It applies to all tobacco products, including vapes, e-cigarettes, and chewing tobacco. Consumers of these products can expect to pay double the previous tax rates, regardless of their method of consumption.
The tobacco tax was a key component of the state’s 2025 budget. Initially met with hesitation from Republican lawmakers, the measure gained passage to address a projected $2.4 billion budget shortfall. The increased tax is estimated to generate an additional $400 million annually for the state.
