Smokers in NJ get will pay more for cigarettes and nicotine vapes starting Aug. 1

🔴 Taxes on tobacco products are going up

🔴 Cigarette taxes increase by 30 cents a pack

🔴 Tax increases begin Aug. 1

Smokers in New Jersey may want to stock up on their favorite products today because the tax on cigarettes, tobacco and vape products increases on Friday.

Gov. Phil Murphy’s fiscal year 2026 budget recommendations included the enactment of legislation to increase the tax rate on liquid nicotine and container e-liquid

ALSO READ:  New Jersey paramedics can now give blood transfusions in the field

What products are affected?

Taxes on cigarettes, liquid nicotine (vape products), and container e-liquid go up starting at 12:01 a.m. on Aug. 1, 2025, said the New Jersey Division of Taxation.

The new tax rate applies to all state unaffixed cigarette stamps, and all stamped cigarettes, liquid nicotine, and container e-liquid in the possession of any distributor, wholesaler, or retailer licensed in New Jersey.

How much will the taxes increase?

The tax on cigarettes will go up 30 cents for a pack of 20 cigs, bringing the rate from $2.70 per pack to $3.00 per pack.

When broken down, that means a pack-a-day smoker will spend an extra $1,095 per year on cigarette taxes alone.

For liquid nicotine (vape pods) the tax will triple from 10 cents to 30 cents per fluid milliliter, and the tax will increase from 10% to 30% of the listed retail sale price for container e-liquid.

More bill details

The cigarette tax increase is projected to generate an additional $41 million in revenue for the state over a full fiscal year, and the tax hike on vaping products are projected to generate an additional $10 million in state revenue, bringing the total amount in extra state revenue to $51 million from just these tax increases.

Assembly Budget Committee member Brian Rumpf (R-Ocean), has long criticized Gov. Murphy’s budget which will raise taxes by more than $1 billion. He said the middle-class continues to get nickel-and-dimed by tax increases. Paychecks are lower and bills are higher, which remain a huge concern for families across the state, he says.

The bill also requires each distributor, wholesaler, and retailer of liquid nicotine to file returns with the director of the Division of Taxation by the first day of the second month after the effective date.

What is the purpose of the tax hike?

The tax increases on cigarettes and other nicotine products are intended to not only generate additional state revenue, but also potentially discourage the use of nicotine products, according to the New Jersey Legislature.

Of the revenue from taxes on liquid nicotine and container e-liquid, $2 million will be allocated to the state’s Health Care Subsidy Fund, which has historically received revenue from tobacco taxes.

Report a correction 👈 | 👉 Contact our newsroom