Delaware Tax Proposal Targets Vapes, Nicotine Pouches and Other Tobacco Products

Apr.24
Delaware Tax Proposal Targets Vapes, Nicotine Pouches and Other Tobacco Products
Delaware’s latest tobacco tax increase bill cleared its first House committee hurdle on April 22. Backed by House Speaker Melissa Minor-Brown, the bill would raise the cigarette tax from $2.10 to $3.60 per pack and increase taxes on moist snuff, vapor products and other tobacco products.

Key Takeaways

  • Delaware’s tobacco tax hike bill cleared its first House committee hurdle on April 22.
  • The bill would raise the cigarette tax from $2.10 to $3.60 per pack.
  • After substitution, the vapor product tax would rise from 5 cents to 10 cents per fluid milliliter, and the rate for other tobacco products would rise from 30% to 40% of wholesale price.
  • The bill would expand the definition of tobacco products to include pipe tobacco, nicotine pouches and vapor products.
  • If passed, the tax increases would take effect on Sept. 1 and the licensing fee increases on Jan. 1, 2027.

2Firsts, April 24, 2026 

 

According to the report, Delaware’s latest effort to raise taxes on cigarette packs, vape products and nicotine pouches cleared its first legislative hurdle when it passed a House committee on April 22.

 

The bill would raise cigarette and moist snuff taxes


Backed by House Speaker Melissa Minor-Brown, the bill would raise the cigarette tax from $2.10 to $3.60 per pack and the tax on moist snuff from 92 cents per ounce to $1.23 per ounce. 

 

The report said the average price for a pack of cigarettes in Delaware is now about $9.61 and could exceed $11 if the measure is enacted.

 

The definition of tobacco products would expand to nicotine pouches and vapor products


The bill would also expand the definition of tobacco products to include products that come from, are made of or contain “tobacco or nicotine for individual consumption.” According to the report, that includes pipe tobacco, nicotine pouches and vapor products.

 

The bill excludes marijuana products and FDA-recognized drugs or therapeutic devices


Under the proposal, products containing marijuana would be excluded, regardless of whether they also include nicotine. Products considered “a drug or therapeutic device” by the U.S. Food and Drug Administration would also be excluded.

 

The vapor and other tobacco tax increases were scaled back on April 17


The bill originally sought to raise the tax on vapor products from 5 cents per fluid milliliter to 25 cents, while the rate for all other tobacco products would rise from 30% of wholesale price to 45%. 

 

However, after the bill was substituted on April 17, the vapor product tax was revised to 10 cents per fluid milliliter and the rate for other tobacco products to 40% of wholesale. The tax on premium cigars would remain unchanged at 30%.

 

The new tax rates would take effect on Sept. 1


The report said these tax rate increases would go into effect on Sept. 1 if the bill is enacted.

 

The bill would also increase licensing fees


The legislation would also update Delaware’s tobacco licensing system, roughly doubling several fees paid to the state Department of Finance. Wholesale and affixing agent fees would rise from $200 to $400, retail fees from $50 to $100, vending machine fees from $15 to $30, and the replacement fee for defaced or lost licenses from $10 to $20.

 

Licensing fee changes would begin on Jan. 1, 2027


If passed, those fee changes would take effect on Jan. 1, 2027.


According to the report, the proposal matches the tax increases included in Gov. 

 

Matt Meyer’s revenue plan for the upcoming fiscal year. Meyer’s team estimated that a $1.50 per-pack cigarette tax increase and related changes would generate $18 million in the next fiscal year. 

 

Minor-Brown’s bill is projected to generate about $18.5 million in the coming fiscal year and about $26.7 million in the following fiscal year.

 

Supporters say the bill is both a fiscal and public-health measure


The report said Minor-Brown described the policy as a “fiscal and public health win,” arguing it would reduce long-term healthcare costs and generate revenue that could be reinvested into prevention and community health.


The American Lung Association’s 2026 State of Tobacco Control report gave Delaware a “D” on tobacco taxes. The group recommended increasing the cigarette tax by at least $1.50 per pack and creating greater uniformity between cigarette taxes and those on other tobacco products.

 

Opponents say the increases could hurt small businesses


The report also said some critics warned the higher tax rates could hurt small businesses that sell cigarettes and other tobacco products. Others argued that tobacco tax increases no longer generate the same level of revenue as in the past because of declining smoking rates and the rise of alternative products.


Several public commenters working in those businesses said the bill would be devastating if it became law. One commenter said, “The economy is already hard, and please don’t make it any harder.”

 

The speaker said the bill is not only about raising taxes


Minor-Brown, however, remained firm. She said, “This is not just about raising a tax. It’s also about lowering disease. It’s about lowering costs. It’s about ultimately saving lives.”

 

Image source: Delaware Online.

 

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