Cigarette & Other Tobacco Products Tax - DOF

Department of Finance


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Cigarette and other tobacco products tax

All cigarettes sold in New York City must bear a joint New York City and New York State tax stamp.

As of June 1, 2018, all other tobacco products (OTP) sold in NYC must include the NYC OTP tax. The tax must be paid by the wholesale dealers on sales of OTP to New York City retail dealers or other persons in New York City for purposes of resale.

Cigarette Tax

Who must pay this tax?
The tax is paid by a stamping agent and passed along to consumers in the cost of each pack of cigarettes. The customer pays the cigarette tax as part of the purchase price.

Who is exempt from this tax?
No tax is owed on cigarettes under the following circumstances:

The use of two cartons (400 cigarettes) or fewer in New York City, if the user brings the cigarettes into the city for use, not for sale

Cigarettes sold to the United States government

Cigarettes sold to or by a voluntary unincorporated organization of the Armed Forces operating a place for the sale of goods pursuant to federal regulations

Cigarettes sold to the State of New York, or any public corporation, or political subdivision of the state, not for resale

Cigarettes possessed by an agent or wholesale dealer for sale to an out-of-city dealer, or for sale and shipment to a person in another state for use there

Cigarettes sold to the United Nations, its personnel, and certain qualified diplomatic personnel

Other tobacco products (OTP) tax

Who must pay this tax?
This tax must be paid by the wholesale dealers on sales of OTP to New York City retail dealers or other persons in New York City for purposes of resale.

Who is exempt from this tax?
No tax is owed on other tobacco products sold to:

OTP wholesale dealers located within New York City

Dealers located outside of New York City, or for sale and shipment to a person in another state for use there

The United States government

A voluntary unincorporated organization of the Armed Forces operating a place for the sale of goods pursuant to federal regulations

The State of New York, or any public corporation, or political subdivision of the state, not for resale

The United Nations, its personnel, and certain qualified diplomatic personnel.

Forms

Wholesale Cigarettes/Other Tobacco Products

CTX-OTP-AW - Application for a wholesale cigarette/tobacco products license or license to operate cigarette vending machine (fill-in-form)

CTX-A.34a - Report of changes in personnel, motor vehicles and/or location of vending machines

CTX-WD - Wholesale cigarette license annual affidavit for sub-jobbers and vending machine operators

CTX-CB - Form of credit bond for agent to affix cigarette stamps (fill-in-form)
Download Instructions

CTX-R - Cigarette activity report (includes related tax schedules)

Cigarette Tax Refund Application

NYC Cigarette Tax Payment Form

NYC Other Tobacco Products Payment Form (Coming Soon)

Request for Cigarette Tax Installment Agreement

OTP-R - Wholesale dealer of tobacco products tax return and accompanying schedules
Fillable Form | Generic Form | Download Instructions

Other Tobacco Products Refund Application (Coming soon)

You pay the cigarette tax as part of the purchase price. However, there are applications and other forms for wholesale and retail cigarette vendors, stamping agents, and cigarette vending machine operators.

More information about cigarette and tobacco products licenses

Tax rates

Cigarette tax rates

The tax is imposed at a rate of 75 cents for each ten cigarettes or fraction of a group of ten, or $1.50 for a standard pack of 20 cigarettes. However, if a package of cigarettes contains more than 20 cigarettes, the rate of tax on the more than 20 cigarettes is 38 cents for each five cigarettes or any fraction of a group of five.

Other tobacco products tax rates

Cigar: $0.80 per individually packed cigar; for a package, $0.80 for the first cigar, plus $0.175 for each additional cigar

Little cigar: $1.09 per pack

Smokeless tobacco: $0.80 per 1.2 oz. plus an additional $0.20 for each 0.3 oz. or any fraction thereof in excess of 1.2 oz.

Snus: $0.80 per 0.32 oz. plus an additional $0.20 for each 0.08 oz. or any fraction thereof in excess of 0.32 oz.

Shisha: $1.70 per 3.5 oz. plus an additional $0.34 for each 0.7 oz., or any fraction thereof in excess of 3.5 oz.

Loose tobacco: $0.25 per 1.5 oz. package plus an additional $0.05 for each 0.3 oz. or any fraction thereof in excess of 1.5 oz.

Legal authority

Local Law: Title 11, Chapter 13, Administrative Code
Enabling Act: Chapter 235 of the Laws of 1952

The interest rate on underpayments is the federal short-term rate plus seven percent. Also the default rate for underpayments is seven and one half percent.

Certain taxpayers and tax preparers who file using tax software may be required to file electronically and could be subject to civil penalties for failure to do so.

Provisions detailing crimes applicable to the tax has been redefined to conform to recent New York State revisions.