where do cigarette taxes go

Best answer


As of 2009, the federal excise tax on a pack of cigarettes is $1.01. This tax money goes to fund theState Children鈥檚 Health Insurance Program(SCHIP). The U.S. Department of Health and Human Services administers the SCHIP.

People also ask


  • Where does the tobacco tax money go?

  • Where Does Tobacco Tax Money Go? As of 2009, the federal excise tax on a pack of cigarettes is $1.01. This tax money goes to fund the State Children鈥檚 Health Insurance Program (SCHIP). The U.S. Department of Health and Human Services administers the SCHIP.

  • What is a cigarette tax?

  • Federal and state governments impose a tax on all tobacco products, which means that tobacco consumers are responsible for paying the tax. Types of tobacco products include cigarettes, pipe tobacco, cigars, hookah/shisha tobacco, snuff, etc. The terms Tobacco Tax and Cigarette Tax are used interchangeably.

  • Why do cigarette taxes go up in some states?

  • With fewer cigarettes sold, less cigarette tax revenue is collected. The second reason is that in many states, when cigarette tax rates are increased sizably above neighboring states, consumers are more inclined to buy cigarettes elsewhere.

  • What state has the highest tax on cigarettes?

  • Highest and Lowest Tobacco Taxes by State. Of the 50 US States and District of Columbia, the 5 states with the highest excise tax (dollars) per cigarette pack as of 2018 are: New York: $4.35/pack. Connecticut: $4.35/pack.

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