Starting July 1st, consumers of vapes, nicotine pouches, and other tobacco products in Illinois will face higher prices as a new tax hike takes effect. The state tax on vaping products will triple, increasing from 15% to 45% of the wholesale price. Most other tobacco products, including cigars and chewing tobacco, will also see their wholesale tax rate rise to 45%, up from 36%. Additionally, the tax on a pack of cigarettes will increase by $1.
This tax increase also applies to popular non-tobacco nicotine products like Zyn nicotine pouches. The price of a can of Zyn, currently around $8 in some Chicago stores, is expected to jump significantly due to the new levy.
State Senator Javier Loera Cervantes (D-Chicago), a former smoker who sponsored the bill, stated the goal is to discourage use and address the negative health effects of nicotine. “We’re trying to hopefully get people away from tobacco products,” he said. The tax increases are projected to generate nearly $30 million in new revenue for the state.
However, the move has drawn criticism. Dr. Brian Erkkila of Swedish Match, the manufacturer of Zyn, expressed concern that the tax could have the opposite effect. “We’re just worried this tax increase could keep people smoking,” he said, arguing that raising the price of smoke-free alternatives makes it harder for smokers to switch. The Illinois Fuel & Retail Association also raised concerns about consumers taking their business to border states.
Kristina Hamilton of the American Lung Association in Illinois supported the tax hike, noting that nicotine pouches are not among the seven FDA-approved smoking cessation products and that “these products still contain harmful chemicals.”
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