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Maryland Raises Taxes on Tobacco


The Maryland General Assembly passed a bill that raises the tax on certain tobacco products (SB 1302). 

The bill doubles the tax on "other tobacco products" from 15% of the wholesale price to 30% of the wholesale price (see Example 1). Maryland law defines other tobacco products* as,

  • " . . . (1) any cigar or roll for smoking, other than a cigarette, made in whole or in part of tobacco; or
  • (2) any other tobacco or product made primarily from tobacco, other than a cigarette, that is intended for consumption by smoking or chewing snuff."

In addition, the bill raises tax on non-premium cigars from 15% of wholesale price to 70% of the wholesale price (see Example 2).

  • Example 1: The wholesale price is $10. Tax will be $3.
  • Example 2: The wholesale price is $10. Tax will be $7.

*Search under Business regulation, article 16.5-101.

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Avalara Author
Will Frei
Avalara Author Will Frei
Will Frei covers sales tax news including best practices, legislation and sales tax technology. He is the Social Media Manager at Avalara.