INDIANAPOLIS — Smokers, be warned. The price of a pack of cigarettes is increasing by $1 on July 1.
Earlier this year, Indiana lawmakers approved the first tax hike on tobacco products in nearly 20 years. Every pack of cigarettes sold in Indiana will now include $2 in taxes, roughly double the previous amount.
The tax hike affects all tobacco products, including vapes, e-cigarettes and chewing tobacco. Consumers can expect double the previous tax rates, no matter how they consume tobacco.
The tobacco tax was included in the state’s 2025 budget. Republican lawmakers initially hesitated to support the tax hike, but facing a $2.4 billion projected shortfall, lawmakers passed the measure as a way to try and offset the massive deficit.
The increased tobacco tax is estimated to net the state an additional $400 million a year.
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