Indiana Tobacco & Vape Tax Update
(VAPES ARE NOT BANNED IN INDIANA, THE JULY 1ST RUMOR IS FAlSE)
Effective July 1, 2025
The state of Indiana has introduced new tax rates on tobacco and vape products as part of a larger effort to align these categories with cigarette tax increases. These changes apply to all wholesalers and retailers operating in Indiana and will impact the pricing structure for a wide range of products.
Updated Tax Rates
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Cigarettes
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$2.99 per pack for Class A cigarettes
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$3.98 per pack for Class B cigarettes
(Class A and B are based on product classification by the state)
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E-Cigarettes & Vapes
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30% of the wholesale price
This includes closed-system devices like disposable vapes and pod systems.
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Cigars
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30% of the wholesale price
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Other Tobacco Products (OTP)
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30% of the wholesale price
Covers chewing tobacco, pipe tobacco, and similar products.
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Moist Snuff / Smokeless Tobacco
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$0.50 per unit
A fixed tax amount is applied to cans or tins of moist snuff or dip.
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What This Means for Retailers & Distributors
This new tax structure increases the cost burden on wholesale purchases, not retail sales. If you're buying from a wholesaler like HW Wholesale, the taxes will appear as a separate line item on your invoice, rather than being included in the product price.
Our Commitment to You!
HW Wholesale is fully compliant with these new regulations. We collect and remit all necessary taxes on your behalf and break them out on your invoices to keep everything transparent.
If you have questions about how this change impacts your pricing or need help understanding your invoices, we’re here to help. Reach out to your sales rep or reach us below.
EMAIL: sales@hwwholesaleinc.com
Phone # (317)-429-9806
The updated tax law was designed to match the increased rates seen in cigarette taxes and create consistency across nicotine products sold in Indiana.