New York’s budget plan would apply a 75% wholesale tax to nicotine pouches, raising projected revenue

Jan.21
New York’s budget plan would apply a 75% wholesale tax to nicotine pouches, raising projected revenue
New York Gov. Kathy Hochul is proposing to tax ZYN nicotine pouches and other nicotine products at the same rate as cigarettes, applying a 75% wholesale tax under her proposed $260 billion state budget.

 

Key Takeaways

 

 

• New York Gov. Kathy Hochul proposes taxing ZYN and other nicotine pouches under the state budget

• The proposal would apply a 75% wholesale tax, projected to raise $18 million and then $44 million when fully implemented

• Philip Morris says the tax raises public health and affordability concerns and could make it harder for adults to switch from cigarettes

• Rutgers researcher Cristine Delnevo argues for an evidence-based, differentiated tax — above zero but below cigarettes

• The report includes product details on ZYN strengths and flavors and notes concerns about underage use

 


 

2Firsts, January 21, 2026

 

According to the New York Post, New York Gov. Kathy Hochul is pushing a plan to tax ZYN nicotine pouches and other nicotine products at the same rate as cigarettes. Under Hochul’s proposed $260 billion state budget, the pouches would face a 75% wholesale tax, a move projected to generate $18 million in the fiscal year beginning April 1 and $44 million when fully implemented the following year.

 

The report says critics argue the tax could undercut alternatives they view as less harmful than smoking. A spokesperson for Philip Morris, the manufacturer of ZYN, said the new tax “raises serious concerns from both a public health and affordability standpoint.”

 

The report notes that ZYN was the first nicotine pouch approved for sale by the U.S. Food and Drug Administration (FDA) last January. Philip Morris said about 1.4 million New Yorkers still smoke cigarettes, and it said smoking rates are highest among low-income and less-educated households. The company statement said a tax “of this magnitude” makes it harder for adults to switch off cigarettes, while also praising Hochul for putting “improving public health and affordability” at the center of her agenda and expressing interest in working with her administration and the legislature.

 

The report quotes Cristine Delnevo, director at the Rutgers University Institute for Nicotine & Tobacco Studies, saying: “Tax policy should reflect relative risk,” and warning that taxing nicotine pouches the same as cigarettes “could undermine harm reduction,” while leaving them untaxed “could encourage youth uptake.” She advocated “a differentiated, evidence-based tax—above zero but below cigarettes.”

 

The report also cites Richard Marianos, director of the Tobacco Law Enforcement Network and a former official with the Bureau of Alcohol, Tobacco Firearms and Explosives, who urged a focus on cracking down on criminal networks selling illegal cigarettes and higher-nicotine vapes, adding: “The tax is counterproductive because people won’t have an alternative.”

 

The report references a recent discussion sparked by an article in the Journal of the American Medical Association titled, “Can Nicotine Pouches Help People Quit Smoking?” It also describes ZYN pouches as being placed between the lip and gum, sold in 3-mg or 6-mg strengths, and available in flavors including coffee, menthol, peppermint and cinnamon. It quotes Jonathan Foulds, a professor at Penn State University, in JAMA discussing interest in using “a less harmful nicotine product like pouches” to reduce smoking.

 

On the other side, the report says critics fear nicotine pouches could become a new trend like vaping and see an explosion in use among underage users.

 

Photo credit: New York Post

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Imperial Brands Pulls myblu Vape Business From U.S., Citing Prolonged FDA Approval Process
Imperial Brands Pulls myblu Vape Business From U.S., Citing Prolonged FDA Approval Process
Imperial Brands said it will phase out its myblu vaping business in the United States, citing prolonged FDA approval timelines for new vape products. The company said it will instead focus on modern oral nicotine products in the U.S., including the expansion of its Zone brand and new flavors. While overall next-generation product revenue continued to grow, revenue from the category in the Americas declined sharply.
May.12
Trump Reportedly Signs Off on Plan to Fire FDA Commissioner Marty Makary
Trump Reportedly Signs Off on Plan to Fire FDA Commissioner Marty Makary
According to The Wall Street Journal, people familiar with the matter said President Trump has signed off on a plan to fire FDA Commissioner Marty Makary, though the plan is not yet final and could change. The report said Makary’s tenure has included clashes over vaping, abortion and drug policy, and that some senior administration officials view him as struggling to manage the agency.
May.09 by 2FIRSTS.ai
South Korea Moves Against Synthetic Nicotine Regulatory Gap as Three Companies Face Tobacco Business Act Probe
South Korea Moves Against Synthetic Nicotine Regulatory Gap as Three Companies Face Tobacco Business Act Probe
South Korea’s Ministry of Finance and Economy said on May 4 that it requested the Daejeon Metropolitan Police Agency and Gyeonggi Nambu Provincial Police Agency to investigate three sales companies on suspicion of violating the Tobacco Business Act.
May.06 by 2FIRSTS.ai
 Product | ASDF Chroma extends retro cassette visual language with lighting-focused pod design
Product | ASDF Chroma extends retro cassette visual language with lighting-focused pod design
2Firsts noted that ASDF has displayed Chroma on its official website. Public information shows that Chroma is a closed-pod device equipped with an 800mAh battery, switchable RGB lights, haptic feedback and Normal/Boost power modes. It uses a 2ml OSTRO cartridge with 2% nicotine strength. Public information also shows that ASDF has a Malaysian brand background and has previously drawn industry attention for the “retro cassette” visual language used in its Vapetape series.
May.26
BAT Uzbekistan and Regulators Discuss Production Modernization and Export Expansion
BAT Uzbekistan and Regulators Discuss Production Modernization and Export Expansion
A meeting was held at the Department for Combating Economic Crimes under the General Prosecutor’s Office of Uzbekistan with representatives of British American Tobacco Uzbekistan. Participants included the department’s leadership, the Inspectorate for Regulation of the Alcohol and Tobacco Market, and business representatives.
May.09 by 2FIRSTS.ai
Special Report | Russian Vape Compromise Faces First Hurdles
Special Report | Russian Vape Compromise Faces First Hurdles
Russia’s regional vape-ban model is facing early legal and political tests, as Perm Krai moves ahead before federal legislation is fully adopted. The case highlights uncertainty over regional authority, concerns from business groups about market fragmentation, and the risk that pressure against regional bans could revive calls for a stricter nationwide prohibition.
Industry Insight
May.28