Michigan Tobacco Sales Taxes 2019 Michigan: Tobacco Excise Taxes

Michigan:

Michigan Cigarette and Tobacco Excise Taxes

Total Michigan Cigarette Taxes Average Cost Per Pack Ranking (Highest to Lowest)
$2.00 / pack $6.44 / pack 19th / 51

In addition to (or instead of) traditional sales taxes, cigarettes and other tobacco products are subject to excise taxes on both the Michigan and Federal levels. Excise taxes on tobacco are implemented by every state, as are excises on alcohol and motor fuels like gasoline.


Michigan Tobacco Sales Taxes 2019 Current Michigan Tobacco Excise Tax Rates

Michigan has relatively high taxes on cigarettes compared to other states in the United States

The primary excise taxes on tobacco in Michigan are on cigarettes, though many states also have taxes on other tobacco products like cigars, snuff, or e-cigarettes. The tax on cigarettes is $2 per pack of 20 cigarettes, there is a tax of 50 cents per cigar or 32% of wholesale price on cigars (depending on the wholesale cost) and smoking tobacco other tobacco is taxed at 32% of their wholesale price.


Michigan cigarette sales tax rate

Michigan Cigarette Tax - $2.00 / pack

In Michigan, cigarettes are subject to a state excise tax of $2.00 per pack of 20. Cigarettes are also subject to Michigan sales tax of approximately $0.36 per pack, which adds up to a total tax per pack of $2.36. Michigan's cigarette excise tax rate has not been changed in over a decade.

The average cost of a pack of cigarettes in Michigan is $6.44, which is the 19th highest in the United States.


Michigan Other Tobacco Products sales tax rate

Michigan Other Tobacco Products Tax - 32% / Wholesale Price

In Michigan, other tobacco products are subject to a state excise tax of 32% / wholesale price as well as federal excise taxes (listed below).


Payment of Michigan Tobacco Excise Taxes

Payments of tobacco excise taxes are made by vendors, not by consumers, though the taxes will be passed on in the tobacco's retail price. Sales reports and payments of cigarettes and tobacco products are due on the 20th of each month.


Federal Tobacco Sales Taxes 2019 Federal Tobacco Excise Taxes

The price of all tobacco products sold in Michigan also includes Federal Tobacco excise taxes, which are collected from the manufacturer by the Tobacco and Tobacco Tax and Trade Bureau and generally passed on to the consumer in the product's price. Federal excise tax rates on tobacco products are as follows:

Cigars and Cigarettes

Small Cigarettes $50.33 per 1,000 cigarettes, or $1.01 per pack of 20
Large Cigarettes $105.69 per 1,000 cigarettes, or $2.11 per pack of 20
Small Cigars $50.33 per 1,000 cigars, or $1.01 per pack of 20
Large Cigars 52.75% of sales price but not to exceed $402.60 per 1,000 cigars, or $0.4026 maximum each

Other Tobacco Products

Pipe Tobacco $2.8311 per pound, or $0.1769 per one-ounce tin
Chewing Tobacco $0.5033 per pound, or $0.0315 per one-ounce tin
Snuff $1.51 per pound, or $0.0944 per one-ounce tin
Roll-your-own Tobacco $24.78 per pound, or $1.5488 per one-ounce tin

There are also federal excise taxes on cigarette rolling paper and cigarette tubes.



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Source: http://www.salestaxhandbook.com/michigan/tobacco