What States Tax Nicotine Pouches?
Nicotine pouches have become very popular as tobacco-free and smoke-free replacements for regular nicotine products. A lot of states have started to tax them because they are becoming more popular. If you’re wondering which states tax nicotine pouches, this guide goes over the most recent tax rules and what they mean for both businesses and consumers.
States That Charge a Tax on Nicotine Pouches
Several states in the U.S. now clearly tax nicotine pouches. They do this by putting them in the category of “Other Tobacco Products” (OTP) or a larger group of nicotine products:
In Illinois, nicotine pouches (like ZYN) will be taxed at 45% of their wholesale price starting on July 1, 2025. AxiosJacksonville Journal-Courier
Minnesota: Recently put in place a 95% tax on the wholesale price, which is at least $3.04 per container. spokesman.com
Maine: After changes to the law last year, nicotine pouches are now taxed at 42–43%. spokesman.com Tax on Tobacco (TobTax)
Washington: Added to the list with taxes on nicotine pouches, but the summary didn’t say what the rates were. spokesman.com
Nebraska charges 20% of the wholesale price for nicotine pouches. spokesman.com
Idaho charges 40% of the wholesale price of nicotine pouches in taxes. spokesman.com
Utah calls them “alternative nicotine products” and charges $1.83 per ounce in taxes. Tax Commission for the State of Utah
A quick look at state tax laws on nicotine pouches
STATE TAX RATE / STRUCTURE
Illinois 45% of the wholesale price (starting in July 2025)
Minnesota 95% of the wholesale price or at least $3.04 per container
Maine 42–43% of the price at wholesale
Washington New taxes (rate not given)
Nebraska Twenty percent of the price at wholesale
Idaho 40% of the price at wholesale
Utah: $1.83 per ounce Why These Taxes Are Important
Goals for Public Health and Revenue: Many states want to lower the number of young people who use drugs and raise money by raising taxes.
Compliance Effects: Distributors and retailers need to keep a close eye on tax classifications and who is in charge of collecting them.
Tax Strategy and Sourcing: A Business Opportunity
If you’re interested in B2B manufacturing, distribution, or private label instead of retail:
Texas, California, Florida, and many other states haven’t taxed nicotine pouches yet, so businesses have some leeway.
Distributors may be able to get an edge by strategically sourcing from states with low taxes.
To make sure you always have the supplies you need, work with manufacturers you can trust.
Echi: Your Strategic Partner for Nicotine Pouches
Echi is a China-based company that makes and sells high-quality nicotine pouches and strips to businesses all over the world. We make sure:
Products that are ready to meet compliance standards that are different in each area.
Flexible supply chains for controlling volume and distributing goods in a way that is sensitive to taxes.
Quality that is always the same, customization, and dependability for global markets.
Final Thoughts
In short, states like Illinois, Minnesota, Maine, Washington, Nebraska, Idaho, and Utah now tax nicotine pouches. The tax rates are different, but they are usually between 20% and 95% of the wholesale price or are based on weight or volume.
Businesses that want to get into this growing field need to know about state-level tax systems. Echi is ready to help you with your global nicotine pouch strategy when you need a reliable partner for compliant, high-quality supply.
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