Skip navigation
Top navigation skipped
Texas Sales and Use Tax Frequently Asked Questions
Electronic Cigarettes
What are electronic cigarettes (also known as e-cigarettes, personal vaporizers (PVs) or electronic nicotine delivery systems (ENDS)?
E-cigarettes are electronic vaporizers that simulate tobacco smoking by producing an aerosol that resembles smoke. They generally use a heating element known as an atomizer that vaporizes e-liquid, a liquid solution that usually contains a mixture of propylene glycol, vegetable glycerin, nicotine and flavorings; however, some e-liquids do not contain nicotine.
Are e-cigarettes and e-liquids, regardless of contents, subject to the cigarette tax?
No. E-cigarettes and e-liquids do not meet the statutory definition of a cigarette, so they are not subject to the cigarette tax. However, they are subject to state and local sales taxes.
Are e-cigarettes subject to Texas Sales and Use Tax?
Yes. E-cigarettes are subject to sales and use tax.
Are e-cigarettes that contain nicotine subject to the cigarette tax?
No. E-cigarettes and e-liquids do not meet the statutory definition of a cigarette, so they are not subject to the cigarette tax. However, they are subject to state and local sales taxes.
Can e-cigarettes be sold through vending machines?
An e-cigarette retailer may sell e-cigarettes from a vending machine if the retailer holds an e-cigarette retailer permit for the entire commercial business location at which the vending machine is located. An e-cigarette vending machine owner is not allowed to sell e-cigarettes at another’s place of business because the vending machine itself is not a place of business for which the e-cigarette retailer can get a permit.