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Cigarette Tax Increases by 200%, Into Effect July 1
INDIANA, JUN 29 – Indiana expects to raise $800 million over two years to fund Medicaid and aims to help nearly 40,000 smokers quit through the tax hike starting July 1, 2025.
- Indiana implemented a 200% increase in cigarette taxes on July 1, raising the rate from about $1 to nearly $3 per pack statewide.
- Earlier in 2025, lawmakers approved a significant increase in tobacco taxes aimed at closing a $2 billion fiscal gap, while also seeking to lower smoking rates and boost state revenue.
- The increased tax on cigarettes, as well as on vaping devices and smokeless tobacco, is expected to generate approximately $800 million over the next two years to support Indiana’s Medicaid program.
- Senator Rodric Bray explained that alongside generating revenue, the policy was designed to encourage people to avoid starting smoking or to quit if they already smoke.
- The hike may encourage quitting but also risks pushing purchases to neighboring states, with critics warning of financial harm to local businesses and lower-income smokers.
20 Articles
20 Articles
wibc.com
Indiana Triples Cigarette Tax, Smokers Push Back
Source: (Photo: Eric Berman/WIBC) STATEWIDE –Starting Today, Indiana’s cigarette tax jumps from $1 to $3 per pack, hitting wallets hard. Laura Shenkins said, “That’s too much.” Many Hoosiers agree, calling it unfair, especially for working-class families. Gage Hessman told WISH-TV, “It’s just another way to screw over the middle class.” Mary Lay questioned why only smokers are taxed, not others with health risks. The tax aims to encourage quitti…
State Cigarette Tax Triples – WRBI Radio
(Statewide) – Starting Today, Indiana’s cigarette tax jumps from $1 to $3 per pack. Laura Shenkins said, “That’s too much.” Many Hoosiers agree, calling it unfair, especially for working-class families. Gage Hessman said, “It’s just another way to screw over the middle class.” Mary Lay questioned why only smokers are taxed, not others with health risks. The tax aims to encourage quitting and raise revenue, but Laura plans to keep smoking. Cassand
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