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Indiana Prevention Resource Center (IPRC)

Tobacco Tax Rates

The state of Indiana’s most recent cigarette tax increase came ten years ago in 2007, when the tax was raised from 44 cents to 99.5 cents per pack.Indiana’s tobacco tax rate is currently the 13th lowest rate in the nation, and six of the twelve states with lower tobacco tax rates are tobacco-producing states. There is a large body of evidence suggesting that raising taxes on tobacco products is an effective way to curb smoking and tobacco use rates, particularly among high-risk subpopulations. Most major researchers and health organizations support the use of increased tobacco tax rates as a method to reduce tobacco consumption, some even going so far as to say that such policy changes are the single most effective way to curb consumption, including both continued use and initiation rates.