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Texas Taxes

Tobacco Distributor
Permit-holders:

You can now pay tobacco taxes electronically via WebFile.

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Cigar and Tobacco Products Tax

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A tax is imposed on cigars and tobacco products when a permit holder receives them for the purpose of making a first sale in this state.

NOTE: In addition to the cigarette, cigar, and/or tobacco products retailer permit, a retailer must also have an active sales tax permit for each commercial business location.

Notice: Cigarette/Roll Your Own (RYO) Cigarette Tobacco Product Special Fee

Effective Sept. 1, 2013, a new law imposes a fee on the sale, use, consumption, or distribution in Texas of certain Cigarette/Roll Your Own (RYO) tobacco products. Visit our new Web page to learn more about this fee.

Base and Rates for Calculating the Tax on Tobacco Products (Other Than Cigarettes and Cigars)

House Bill 2154 (Effective Sept. 1, 2009) This bill, in part, amends the Tax Code, Chapter 155, and changes the base used to calculate the tax imposed on tobacco products (other than cigars) from the manufacturer's listed price to the manufacturer's listed net weight for each of the products.

The bill also imposes a different tax rate for state fiscal years 2010, 2011, 2012, 2013, 2014 and thereafter. The bill requires that the records kept by each manufacturer, distributor, wholesaler, bonded agent, export warehouse and retailer must show the manufacturer's listed net weight for each tobacco product (other than a cigar) that is sold, distributed, exchanged, purchased, received or used.

Additional revenue from the revised tax base and rates will be deposited to the credit of the Physician Education Loan Repayment Program account.

Permit Fees

Cigarette and tobacco permits: distributors, manufacturers with representation in Texas, and bonded agents - $300 per annual permit year from March 1 through last day of February of following year; wholesalers - $200 per annual permit year from March 1 through last day of February of following year.

There is no fee for an importer permit and no fee to register as a manufacturer with no representation in Texas.

Distributors and wholesalers who sell cigarettes and tobacco products must obtain a permit for each vehicle used - $15 per annual licensing period.

Retailers - $180 for permits issued or renewed. Retailer permits are issued for a two-year period of June 1 through May 31 of even-numbered years.

Rate Details and Other Information

Rates

Cigars

  • one cent per 10 or fraction of 10 on cigars weighing three pounds or less per thousand;
  • $7.50 per thousand on cigars that weigh more than three pounds per thousand, sell at factory list price, exclusive of any trade discount, special discount, or deal, for 3.3 cents or less each;
  • $11 per thousand on cigars that weigh more than three pounds per thousand, sell at factory list price, exclusive of any trade discount, special discount, or deal, for more than 3.3 cents each and contain no substantial amount of non-tobacco ingredients; and
  • $15 per thousand on cigars that weigh more than three pounds per thousand, sell at factory list price, exclusive of any trade discount, special discount, or deal, for more than 3.3 cents each and contain a substantial amount of non-tobacco ingredients.

Other Tobacco Products (smoking and chewing tobacco, snuff)

  • 40 percent of the manufacturer's list price, exclusive of any trade discount, special discount, or deal. (Effective Jan. 1, 2007 to Aug. 31, 2009)
  • Effective Sept. 1, 2009, the tax rate is based on the current state fiscal year. The rate applies to each ounce of net product weight and all fractional parts of an ounce. A tax rate in effect for a state fiscal year does not affect taxes imposed before that fiscal year, and the rate in effect when those taxes were imposed continues in effect for purposes of the liability for and collection of those taxes. Following are the rates by state fiscal year.
Fiscal Year Rate
2010 (Sept. 1, 2009 - Aug. 31, 2010) $1.10 per ounce*
2011 (Sept. 1, 2010 - Aug. 31, 2011) $1.13 per ounce*
2012 (Sept. 1, 2011 - Aug. 31, 2012) $1.16 per ounce*
2013 (Sept. 1, 2012 - Aug. 31, 2013) $1.19 per ounce*
2014 (Sept. 1, 2013 and each fiscal year thereafter) $1.22 per ounce*

*Plus the proportionate rate on all fractional parts of an ounce.


Tax Rate Table for State Fiscal Year 2014 and thereafter
The following table is provided as a guide and shows the actual tax rates and proportionate rates for fractional parts of an ounce, up to two ounces, to use from Sept. 1, 2013, and thereafter.

Tax rate per ounce $1.22
Total Ounces In Can
Or Package
Tax For An Individual
Can Or Package
1.2 ounces or less $1.46
1.3 ounces $1.59
1.4 ounces $1.71
1.5 ounces $1.83
1.6 ounces $1.95
1.7 ounces $2.07
1.8 ounces $2.20
1.9 ounces $2.32
2.0 ounces $2.44

An expanded chart showing tax rates for individual cans or packages weighing up to 15 ounces for state fiscal years 2010 and beyond is available.

Due Date

Manufacturers and Distributors, monthly: last day of the month for the preceding month's activity.

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