TRENTON, NJ — Smokers and vapers in New Jersey would pay more under Governor Phil Murphy’s proposed budget, which includes significant increases to tobacco and vapor product taxes projected to generate $51 million in new annual revenue.
Under the plan, the per-pack cigarette tax would rise from $2.70 to a flat $3.00, bringing in an estimated $41 million in the next fiscal year.
Key Points
- Cigarette tax would increase from $2.70 to $3.00 per pack.
- Vape liquid taxes would triple under Murphy’s proposal.
- Combined, the tax hikes are projected to raise $51 million annually.
The proposal also targets vaping products, increasing the liquid nicotine tax from $0.10 to $0.30 per milliliter and tripling the container e-liquid tax from 10% to 30%. These changes are expected to add another $10 million in state revenue.
The tax hikes are part of Murphy’s broader budget strategy aimed at boosting state revenues through changes to health-related levies.
The tax hike plan would hit smokers and vapers with higher costs to bring millions into state coffers.