Which states charge taxes on nicotine pouches?

Nicotine pouches have become very popular because they are tobacco-free and smoke-free alternatives to regular nicotine products. Many states have started to tax them because they are becoming more popular. If you want to know which states tax nicotine pouches, this guide explains the most recent tax rules and what they mean for both consumers and businesses.

States That Charge Taxes on Nicotine Pouches

Several states in the U.S. now clearly tax nicotine pouches. They usually do this by putting them in the “Other Tobacco Products” (OTP) category or a larger category of nicotine products:

Starting on July 1, 2025, Illinois will charge 45% of the wholesale price for nicotine pouches, such as ZYN. AxiosJacksonville Journal-Courier

Minnesota: Recently put in place a 95% tax on the wholesale price, or at least $3.04 per container. spokesman.com

Maine: After changes to the law last year, it now taxes nicotine pouches at 42% to 43%. spokesman.com Tax on Tobacco (TobTax)

Washington: Added to the list with a tax on nicotine pouches, but the summary didn’t say what the rates were. spokesman.com

Nebraska charges 20% of the wholesale price for nicotine pouches. spokesman.com

Idaho charges 40% of the wholesale price for nicotine pouches. spokesman.com

Utah calls them “alternative nicotine products” and charges $1.83 per ounce in taxes. The Utah State Tax Commission

A quick look at state tax rules for nicotine pouches
STATE: TAX RATE / STRUCTURE
Illinois 45% of the wholesale price (starting July 2025)
Minnesota 95% of the wholesale price or at least $3.04 per container
Maine 42–43% of the price at wholesale
Washington New taxes have been added (the rate is not known)
Nebraska 20% of the price at wholesale
Idaho 40% of the price at wholesale
Utah: $1.83 per ounce Why These Taxes Are Important

Public Health and Revenue Goals: A lot of states want to cut down on how much young people use drugs and raise money through higher taxes.

Compliance Impacts: Distributors and retailers need to keep a close eye on tax categories and who is responsible for collecting them.

Tax Strategy and Sourcing: A Business Opportunity

If you want to go beyond retail and into B2B manufacturing, distribution, or private label,

Many states, like Texas, California, and Florida, haven’t taxed nicotine pouches yet, which gives businesses more options.

Distributors may have an edge over their competitors if they strategically source from states with low taxes.

To get a steady supply that won’t be affected by changing tax laws, work with trusted manufacturers.

Echi: Your Partner in Strategic Nicotine Pouches

We are a Chinese company that makes and sells high-quality nicotine pouches and strips to businesses all over the world. We make sure:

Products that are ready to meet compliance needs based on differences in regulations.

Supply chains that can change to control volume and avoid taxes.

Quality that is always the same, customization, and dependability for global markets.

In the end,

In short, states like Illinois, Minnesota, Maine, Washington, Nebraska, Idaho, and Utah now tax nicotine pouches. The tax rates are different, but they usually range from 20% to 95% of the wholesale price or are based on weight or volume.

Businesses that want to get into this growing field need to know how state-level taxes work. Echi is ready to help you with your global nicotine pouch strategy when you need a reliable partner for compliant, high-quality supply.