Other Tobacco Products Tax Guide

In the United States Other Tobacco Products are taxed at both the federal and state levels, in addition to any local sales taxes and local tobacco-specific taxes. The term OTP means any product that is not cigarettes and includes tobacco ingredients. OTP includes cigars, smokeless tobacco, wraps, pipe tobacco, and vapor. OTP is taxed on weight, price, cost (wholesale price), or count (sticks or cans).

Smokeless Tobacco

Any tobacco product that consists of cut, ground, powdered, or leaf tobacco and that is intended to be placed in the oral or nasal. Smokeless tobacco includes moist snuff, dry snuff, and chewing tobacco.

Smoking Tobacco

Any tobacco product smoked into the mouth, and then releasing it. Smoking tobacco includes cigars, hookah or pipe tobacco, roll you own and little cigars.

Tobacco Accessories

Accessories includes e-cigarettes, pipes, lighters, and other accessories.