Excise taxes of oral nicotine pouches in the USA

Oral nicotine pouches (ONPs) are a rapidly growing segment of the nicotine market in the USA, yet there is no comprehensive assessment of state taxation of these products. Understanding how states tax ONPs is critical for informing tobacco control policies and public health strategies.

We collected ONP excise tax data by directly contacting state tax departments or through requests under state freedom of information acts. For each state, we determined whether ONPs containing tobacco-derived nicotine (TDN) and/or non-tobacco nicotine (NTN) are taxed and identified the applicable tax structure and rate. Tax forms were categorised as specific taxes (US$/ounce or US$/package) or ad valorem taxes (% of price).

As of December 2025, no federal excise tax applies to ONPs. Twenty-nine states and the District of Columbia do not tax ONPs while 21 states impose excise taxes. Of these 21 states, 7 states use specific taxes and 14 apply ad valorem taxes. Fifteen states tax ONPs containing both TDN and NTN, whereas five tax only TDN-containing products while staying silent on NTN products. Nevada is unique in taxing NTN-containing ONPs while expressly exempting TDN products. Ad valorem rates range from 10% to 95%, and specific taxes range from US$0.50 per ounce to US$3.08 per can.

This study reveals substantial variation in state-level ONP tax structures and rates. The findings establish a foundation for future research evaluating how ONP taxation affects public health outcomes.