Governor Hochul Proposes Tax on Nicotine Pouches

Governor Hochul proposes tax on nicotine pouches

According to a 2025 World Health Organization report, one in five adults, globally, are addicted to tobacco. Governor Hochul proposed in her Executive Budget for FY 2027 to broaden the tobacco products’ definition to include nicotine. This would cause nicotine pouch products such as Zyn, Velo, and On! to carry a 75% wholesale tax.

New York Gov. Hochul's nicotine pouch tax would be bad for public health

Buried in New York Gov. Kathy Hochul’s massive $260 billion budget proposal is a new tax to make buying a can of nicotine pouches as expensive as buying a pack of cigarettes. Hochul says the tax would raise $18 million in the first year and $44 million upon full implementation. Given the state’s large budget, the projected revenue increase is small, but the negative impacts on public health would be high. Commenting on the planned tax increase, …