Washington Bill Could Create the Highest Cigar Tax in the United States

Washington State lawmakers will debate several tobacco tax bills this year. These proposals could reshape the cigar market across the state. Retailers and consumers now face growing uncertainty.

The most consequential proposal is Senate Bill 6129. This bill would overhaul how Washington taxes cigars and other nicotine products.

What Senate Bill 6129 Proposes

S.B. 6129 would set a new tax rate of 90 percent of the taxable sales price. Lawmakers would likely apply that rate at the wholesale level. This structure marks a major departure from the current system.

At present, Washington taxes cigars at 95 percent of the wholesale price. The law includes a hard cap of 65 cents per cigar. That cap limits the impact on premium cigars.

How Prices Would Change for Consumers

Under the existing cap, most premium cigars hit the maximum tax quickly. A cigar with a $9.50 MSRP usually sells for about $10.15 before sales tax. The excise portion remains 65 cents.

S.B. 6129 would dramatically change that calculation. The same cigar would likely carry a taxable sales price of $4.75. A 90 percent tax would raise the excise to roughly $4.28. Shelf prices could jump to $13.78 before sales tax.

More expensive cigars would feel even greater pressure. A $24 cigar now sells for about $24.65 before tax. Under the bill, that price could climb to nearly $34.80.

Additional Penalties for Flavoured Products

The bill also includes a separate surcharge. Flavoured cigars would face an additional 10 percent tax. That increase would push the effective rate to 100 percent.

This provision would place flavoured cigars under extreme financial pressure. Retailers could struggle to justify carrying them.

Washington Compared With Other States

If enacted, S.B. 6129 would give Washington the highest cigar tax in the nation. Utah currently holds that position with an 86 percent wholesale tax.

Several states take a different approach. Florida, New Hampshire, Pennsylvania and Washington, D.C. impose no cigar excise taxes at all. That contrast highlights Washington’s aggressive direction.

Other Bills Also in Play

S.B. 6129 is not the only proposal under consideration. House Bill 2382 would raise the cigar tax cap from 65 cents to 95 cents. That increase appears modest by comparison.

Lawmakers have also reintroduced bills from 2025. These measures include flavour bans and further tax adjustments. Together, they signal continued pressure on tobacco products.

Legislative Timeline and Sponsors

Senator June Robinson of Everett introduced S.B. 6129. Five Democratic lawmakers co-sponsored the bill.

The Senate Committee on Ways & Means scheduled a hearing for 22 January at 4:00 p.m. That session will mark the first major step in the bill’s legislative path.