New Fact Sheet from CDC Foundation - Indiana's 2025 Tobacco Tax Increase

Economics for Health, in collaboration with the CDC Foundation’s Tobacco Monitoring Project, has released a new factsheet that assesses how Indiana’s tobacco tax increase changed cigarette and e-cigarette prices, sales, tax revenues, and cross-border shopping. 

In July 2025, Indiana increased its cigarette tax from $0.995 to $2.995 per pack, doubled the e‑cigarette tax to 30%, and raised taxes on other tobacco products.

Key findings from the factsheet include:

• Cigarette pack sales fell by 12.6 million in the second half of 2025.
• Premium cigarette prices rose more than value brand prices.
• Sales of premium cigarettes declined more than sales of value cigarettes.
• E‑cigarette prices also increased, leading to a decrease in e‑cigarette sales.
• Tobacco tax revenues grew by $170.4 million, with no evidence of increased cross‑border shopping.