ROCKFORD, Ill. (WTVO) — As of July 1, 2025, a 15-percent tobacco tax increase will take effect in Illinois, raising the levy on vapes, nicotine patches, and other tobacco products to 45% on wholesale orders statewide.
The hike, aimed at generating an estimated $29.7 million in revenue, is already stirring reactions among local tobacco users and retailers.
Lilly Alldritt, a regular vaper among the roughly 2 million tobacco users in Illinois, says she’s frustrated over the impending cost increase.
“Absolutely. It’s not worth the money,” she said. “You already try to quit in the first place.”
Alldritt, who switched from cigarettes to vaping, is among those who are already feeling the pinch of the new tax. Retailers are bracing for an impact on their bottom lines, though the exact price hikes remain uncertain.
Aum Suchde, owner of Roll A Smoke tobacco shop in Rockford said: “People are going to say, ‘That’s not right.’ But at the end of the day, it is what it is, and people have to do what they have to do.”
Some residents are determined to absorb the cost. Others, like Alldritt, see the tax as a potential incentive.
“This might be the reason to quit,” she said.
A retailer known only as Max owns the Mobil station on Springfield Avenue in Rockford. He says the existing 36-percent tax on the tobacco products he’s buying now is enough. He’s not sure the industry can take another hike. If he has to pass the new 15-percent increase onto his customers, he could lose a significant portion of his base.
“It should be back to normal, what it was before,” Max said. “A lot of people are agreeing with that same thing.”
Meanwhile, opinions on the revenue’s use vary. Tobacco user Jeff Speck said the tax will be easier to digest if dollars are put to good use.
“As long as it helps the state, then it shouldn’t be a problem,” Speck said.
Suchde agrees, but he’s not completely ready to say it’s a good idea.
“I mean if they’re going to use it for us, then it’s good,” he said. “But you never know.”
State officials have clarified that cigarettes are exempt from the 45% tax increase. Instead, a new $1 per-pack tax will apply, part of a broader strategy to discourage tobacco use across Illinois. The additional revenue is expected to support state initiatives, though details on its allocation are unclear.
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