Avalara Taxrates > Blog > Sales Tax Rate Changes > Washington, DC changes tax rates on cigarette and tobacco products - Avalara

Washington, DC changes tax rates on cigarette and tobacco products


 The tax on cigarettes will increase on Oct. 1 in Washington, D.C.

As of Oct. 1, 2017, tax rates for various tobacco products will change in the District of Columbia.

The cigarette tax in D.C. is currently $2.50 per 20-pack plus a surtax of $0.42, for a combined tax of $2.92. On Oct. 1, the surtax jumps to $0.44, bringing the combined cigarette excise tax to $2.94. Sales tax doesn’t apply to cigarettes.

However, the tax on other tobacco products will drop from 65 percent to 60 percent of the wholesale price. As with cigarettes, sales tax doesn’t apply to other tobacco products. Additional information.

The tax on vapor products isn’t changing at this time. Effective Oct. 1, 2015, vapor products are subject to a 67 percent excise tax, but not sales tax. Additional information.

Tax automation software can facilitate tax returns for e-cigarette excise taxes. Learn more.

 


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.