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Minnesota Tobacco Taxes Increase, January 2016

  • Oct 28, 2015 | Gail Cole

 Minnesota to increase tobacco taxes in 2016.

Tobacco products sold in Minnesota are going to get a bit more expensive in the new year. Beginning January 1, 2016, excise and sales taxes on cigarettes and most snuff are increasing.


Effective January 1, 2016, the cigarette excise tax rate is 15 cents (150 mills) per cigarette and the sales tax on cigarettes is 54.3 cents per 20-pack. The sales tax should be adjusted proportionally for packages with different cigarette quantities.

Moist snuff

The 2016 moist snuff excise tax rate (for sales on or after January 1, 2016) is $3.00 per container or 95% of the wholesale sales price. This is a 10-cent increase over the 2015 moist snuff excise tax rate.

License renewal

Anyone planning to distribute or sell tobacco products in Minnesota during 2016-2017 is required to “renew their Tobacco Tax license and pay the required fee” by November 16, 2015.

Applicable fees should be submitted to the Minnesota Department of Revenue along with a completed License Application for Tobacco Products Distributors and Subjobbers. Additional information is available here.


Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.