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Texas Taxes

Cigarette Tax

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The law imposes a tax when a distributor receives cigarettes for the purpose of making a first sale in this state.

A stamp must be affixed to each package within 96 hours of receipt. The stamp serves as evidence that state tax has been paid.

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

Permit Fees

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.

Importers – no fee.

Manufacturers with no representation in Texas – no fee.

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.

The Comptroller will not issue refunds for locations closing before the permit expiration date.

Cigarette Delivery Sales

Cigarette purchases made via the Internet, mail or telephone order and delivered to a buyer in Texas must have a Texas cigarette tax stamp affixed to the bottom of the cigarette package.

Cigarette Stamp Orders

The Comptroller will not process cigarette stamp orders on half-day or full-day holidays.

Rate Details and Other Information

Rates

For a conventional package of 20 cigarettes, the tax is $1.41 per pack. For a package of 25 cigarettes, the tax is $1.7625 per pack. ($70.50 per 1,000 cigarettes weighing three pounds or less per 1,000.  $72.60 per 1,000 cigarettes weighing more than three pounds per 1,000.)

Due Date

Manufacturers and Distributors report monthly on the last day of the month for the preceding month’s activity.

Electronic Reporting

You can file cigarette delivery sales tax reports electronically via WebFile by choosing Cigarette Delivery Sales Report under Other Electronic Reporting Tools. Currently, you cannot report your permit fees or renewals electronically.

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