New Mexico: Tobacco Excise Taxes
New Mexico Cigarette and Tobacco Excise Taxes
| Total New Mexico Cigarette Taxes | Average Cost Per Pack | Ranking (Highest to Lowest) |
|---|---|---|
| $1.66 / pack | $6.53 / pack | 18th / 51 |
In addition to (or instead of) traditional sales taxes, cigarettes and other tobacco products are subject to excise taxes on both the New Mexico and Federal levels. Excise taxes on tobacco are implemented by every state, as are excises on alcohol and motor fuels like gasoline.
Current New Mexico Tobacco Excise Tax Rates
The primary excise taxes on tobacco in New Mexico are on cigarettes, though many states also have taxes on other tobacco products like cigars, snuff, or e-cigarettes. The tax on cigarettes is $1.66 per pack of 20 cigarettes and other tobacco products are taxed at 25% of their product value.
New Mexico Cigarette Tax - $1.66 / pack
In New Mexico, cigarettes are subject to a state excise tax of $1.66 per pack of 20. Cigarettes are also subject to New Mexico sales tax of approximately $0.34 per pack, which adds up to a total tax per pack of $2.00.
The average cost of a pack of cigarettes in New Mexico is $6.53, which is the 18th highest in the United States.
New Mexico Other Tobacco Products Tax - 25% / Product value
In New Mexico, other tobacco products are subject to a state excise tax of 25% / product value as well as federal excise taxes (listed below).
New Mexico Medical Marijuana Tax - 5.00%
Medical marijuana is legal in New Mexico, and is subject to state taxes. There are no federal excise taxes collected on marijuana, since it is still seen as illegal under Federal laws.
Currently, the New Mexico sales tax does not apply to medical marijuana
Medical marijuana is subject to a state cannabis excise tax of 5%.
New Mexico Recreational Marijuana Tax - 17.13%
Recreational marijuana is legal in New Mexico, and is subject to state taxes. There are no federal excise taxes collected on marijuana, since it is still seen as illegal under Federal laws.
Currently, recreational marijuana is subject to a New Mexico cannabis sales tax of 5.13%.
Recreational marijuana is subject to a state excise tax of 12%.
As of July 1, 2020 excise tax for recreational marijuana in New Mexico is 12%. As of July 1, 2025 the excise will increase to 13%. This trend will continue until the excise tax reaches 18 percent in 2030.
Payment of New Mexico 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 25th of the next month.
Federal Tobacco Excise Taxes
The price of all tobacco products sold in New Mexico 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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