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Nicotine products in Washington State, USA are now subject to tobacco product tax

Author.

LCS

Source:

Post time:

2026-01-04

According to the notice from the Washington State Taxation Office, starting from January 1, 2026, any product containing nicotine, whether derived from tobacco or synthetic products, is subject to tobacco product tax.

 

图片来源:华盛顿州税务局的官方网站

 

1

Scope of taxed products

The tobacco product tax applies to any product containing tobacco or nicotine, whether derived from tobacco or synthetic products. Including cigars, pipe tobacco, chewing tobacco, electronic cigarettes, synthetic nicotine bags, nicotine vaping products, and any other products containing tobacco or nicotine, regardless of their form.

 

2

The newly taxed products include

  • Synthetic nicotine bag (not previously taxed)

  • Disposable steam products

  • Nicotine containing vapor liquid

 

Note: "Tobacco products" do not include: 1. Cigarettes. 2. Approved for sale by the US Food and Drug Administration (FDA) as of December 31, 2024, drugs, devices, or combination products as defined in the Federal Food, Drug, and Cosmetic Act (21 USC Sec. 301 et al.) effective January 1, 2026.

 

3

How to declare tobacco product tax on existing nicotine product inventory

The tobacco product tax is based on the taxable selling price of nicotine products.

Retailers and distributors must report the value of their existing nicotine product inventory upon the first return after January 1, 2026.

 

4

How to determine the selling price

  • If nicotine products are purchased from non affiliated sellers, use the purchase price.

  • If the retailer or distributor is associated with the manufacturer or distributor, use the actual selling price of the product.

 

5

What is the difference between tobacco product tax and steam product tax

a. The tax on steam products is based on the volume of the solution and the type of container.

b. The tobacco product tax is based on the value of the product in its original packaging or container.

When calculating the tax on tobacco products for vapor nicotine products, the selling price should be used instead of volume.

 

6

Garbage tax applies to the sale of all tobacco products

Steam products are not subject to garbage tax. Products containing nicotine vapor will now be subject to a garbage tax.

For steam products that have already paid tobacco product tax, no credit is provided. Sellers of nicotine products are required to pay tobacco taxes on their existing inventory of nicotine containing vapor products.

 

7

Business license requirements

Enterprises selling tobacco products must obtain tobacco endorsements for every location where tobacco products are sold.

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