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Texas Taxes

Cigarette Tax

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A tax is imposed 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. This is evidence that state tax has been paid.

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.

Permit Fees

Cigarette 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.

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

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

Retailers - $180 for a two-year period of June 1 through May 31 of even-numbered years.

Cigarette Fire Safety Standards

Legislation enacted by 80th Texas Legislature in 2007 (HB 2935) created cigarette fire safety standards that became effective Jan. 1, 2009. By Jan. 1, 2010, all cigarettes sold; offered for sale; given as a sample; prize or gift; or exchanged in the state must be fire-safety compliant. The State Fire Marshal’s Office, Texas Department of Insurance is responsible for administering and enforcing the cigarette fire safety standards. For more information visit the State Fire Marshal’s Web page.

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

Cigarette stamp orders will not be processed on half-day or full-day holidays. See publication 98-712, Schedule of Non-Issuing Days for Cigarette Stamps (PDF, 94KB) for more information.

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, monthly: last day of the month following the end of the calendar month. Reports must be submitted by the last day of the month for the preceding month's activity.

Electronic Reporting

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

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