Bill > HB1251

This bill increases the cigarette tax rate in Indiana, effective July 1, 2025, by raising the per-cigarette tax for both regular and larger cigarettes. For cigarettes weighing not more than three pounds per thousand, the tax will increase from $0.04975 to $0.09975 per cigarette, which represents a $0.05 increase. For cigarettes weighing more than three pounds per thousand, the tax will rise from $0.06612 to $0.13257 per cigarette, which is approximately a $0.0665 increase. The bill also includes a provision allowing distributors to use revenue stamps purchased before July 1, 2025, provided they remit the full updated tax amount to the state department according to prescribed procedures. This tax increase aims to generate additional state revenue and potentially discourage cigarette consumption by making tobacco products more expensive.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/house/1251/details