US nicotine pouch taxation landscape: federal and state overview

This means that no excise tax is currently applied to nicotine pouches in the US at the federal level, while significant number of states also currently have no specific excise tax on nicotine pouches. Most of these either lack an applicable category for alternative nicotine products or explicitly confirmed exemption. The trend of not imposing a tax on these products is led by Republican states, which is 13 out of 22 states. Only three Democratic states do not impose any tax, which shows that Democratic-led states are more active in imposing tax on tobacco products, including nicotine pouches.

This report looks at current tax systems and rates for nicotine pouches in every US state plus the District of Columbia, and it analyses proposed tax bills in seven states.