Texas Cigar and Tobacco Products Tax

CigarsA tax is due when cigars are received for the purpose of making a first sale in Texas. The rates of tax are:

(1) one cent per 10 or fraction of 10 on cigars weighing three pounds or less per thousand;

(2) $7.50 per thousand on cigars that weigh more than three pounds per thousand and that sell at a factory list price for 3.3 cents or less each;

(3) $11 per thousand on cigars that weigh more than three pounds per thousand, that sell at a factory list price for more than 3.3 cents each, and that contain no substantial amount of nontobacco ingredients; and

(4)  $15 per thousand on cigars that weigh more than three pounds per thousand, that sell at factory list price for more than 3.3 cents each, and that contain a substantial amount of nontobacco ingredients.

For tobacco products other than cigars, a tax is imposed when the product is received for the purpose of making a first sale in Texas, and the rate of tax is $1.22 per ounce and a proportionate rate on all fractional parts of an ounce. Tobacco products weighing less than 1.2 ounces are taxed at the same rate as tobacco products weighing 1.2 ounces.

There is an exception from this tax for a person who personally transports cigars or tobacco products in quantities and amounts that would ordinarily retail for 25 cents or less if cigars or tobacco products are for the person’s personal use.

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