taxes

Cigarette Tax

Who is responsible for this tax?

Distributors who receive cigarettes for the purpose of making a first sale in this state.

In addition to Form AP-193, Texas Application for Retailer Cigarette, Cigar and/or Tobacco Product Taxes Permit (PDF), a retailer must have an active Texas sales tax permit for each commercial business location.

Permit Fees

  • Distributors, manufacturers with representation in Texas, and bonded agents – $300 per annual permit year from March 1 through last day of February of following year. Distributors who sell cigarettes and tobacco products must obtain a permit for each vehicle used – $15 per annual licensing period.
  • Wholesalers – $200 per annual permit year from March 1 through last day of February of following year. Wholesalers who sell cigarettes and tobacco products must obtain a permit for each vehicle used – $15 per annual licensing period.
  • Importers – no fee.
  • Manufacturers with no representation in Texas – no fee.
  • Retailers – $180 for permits issued or renewed. Retailer permits are issued for a two-year period of June 1 through May 31 of even-numbered years.

The Comptroller will not issue refunds for locations closing before the permit expiration date.

Cigarette Delivery Sales

Cigarette purchases made online, by mail or by telephone and delivered to a buyer in Texas must have a Texas cigarette tax stamp affixed to the bottom of the cigarette package.

Cigarette Stamps

The distributor must affix a stamp to each package within 96 hours of receipt. The stamp serves as evidence that state tax has been paid.

The Comptroller will not process cigarette stamp orders on half-day or full-day holidays. Learn more about ordering cigarette stamps (PDF).

Rates

  • For a conventional package of 20 cigarettes, the tax is $1.41 per pack.
  • For a package of 25 cigarettes, the tax is $1.7625 per pack. ($70.50 per 1,000 cigarettes weighing three pounds or less per 1,000. $72.60 per 1,000 cigarettes weighing more than three pounds per 1,000.)

Due Date

Manufacturers and distributors report monthly on the last day of the month for the preceding month’s activity.

Penalties and Interest

Penalties
  • A $50 penalty is assessed on each report filed after the due date.
  • If tax is paid 1-30 days after the due date, a 5 percent penalty is assessed.
  • If tax is paid over 30 days after the due date, a 10 percent penalty is assessed.
Interest

Discounts

Distributor – 2.5 percent of the face value of stamps purchased.

Additional Resources