US heated tobacco taxation landscape: federal and state overview

In the US, federal excise tax applies to heated tobacco products (HTPs), which are classified as cigarettes. Beyond the federal tax, many states also levy their own excise taxes on these products. As a result, depending on state regulations, heated tobacco may face both federal and state excise taxes.

Geographical and political trends show higher tobacco tax rates generally in the northeast of the country and in Democrat-led states, and lower rates in the south and the west as well as in Republican-led states.

As of July 2025, 9 states have introduced 14 active bills concerning heated tobacco taxation.

This report looks at current tax systems and rates for heated tobacco products in every US state plus the District of Columbia, and it analyses proposed tax bills in nine states.