Delaware Tax Proposal Targets Vapes, Nicotine Pouches and Other Tobacco Products

Apr.24
Delaware Tax Proposal Targets Vapes, Nicotine Pouches and Other Tobacco Products
Delaware’s latest tobacco tax increase bill cleared its first House committee hurdle on April 22. Backed by House Speaker Melissa Minor-Brown, the bill would raise the cigarette tax from $2.10 to $3.60 per pack and increase taxes on moist snuff, vapor products and other tobacco products.

Key Takeaways

  • Delaware’s tobacco tax hike bill cleared its first House committee hurdle on April 22.
  • The bill would raise the cigarette tax from $2.10 to $3.60 per pack.
  • After substitution, the vapor product tax would rise from 5 cents to 10 cents per fluid milliliter, and the rate for other tobacco products would rise from 30% to 40% of wholesale price.
  • The bill would expand the definition of tobacco products to include pipe tobacco, nicotine pouches and vapor products.
  • If passed, the tax increases would take effect on Sept. 1 and the licensing fee increases on Jan. 1, 2027.

2Firsts, April 24, 2026 

 

According to the report, Delaware’s latest effort to raise taxes on cigarette packs, vape products and nicotine pouches cleared its first legislative hurdle when it passed a House committee on April 22.

 

The bill would raise cigarette and moist snuff taxes


Backed by House Speaker Melissa Minor-Brown, the bill would raise the cigarette tax from $2.10 to $3.60 per pack and the tax on moist snuff from 92 cents per ounce to $1.23 per ounce. 

 

The report said the average price for a pack of cigarettes in Delaware is now about $9.61 and could exceed $11 if the measure is enacted.

 

The definition of tobacco products would expand to nicotine pouches and vapor products


The bill would also expand the definition of tobacco products to include products that come from, are made of or contain “tobacco or nicotine for individual consumption.” According to the report, that includes pipe tobacco, nicotine pouches and vapor products.

 

The bill excludes marijuana products and FDA-recognized drugs or therapeutic devices


Under the proposal, products containing marijuana would be excluded, regardless of whether they also include nicotine. Products considered “a drug or therapeutic device” by the U.S. Food and Drug Administration would also be excluded.

 

The vapor and other tobacco tax increases were scaled back on April 17


The bill originally sought to raise the tax on vapor products from 5 cents per fluid milliliter to 25 cents, while the rate for all other tobacco products would rise from 30% of wholesale price to 45%. 

 

However, after the bill was substituted on April 17, the vapor product tax was revised to 10 cents per fluid milliliter and the rate for other tobacco products to 40% of wholesale. The tax on premium cigars would remain unchanged at 30%.

 

The new tax rates would take effect on Sept. 1


The report said these tax rate increases would go into effect on Sept. 1 if the bill is enacted.

 

The bill would also increase licensing fees


The legislation would also update Delaware’s tobacco licensing system, roughly doubling several fees paid to the state Department of Finance. Wholesale and affixing agent fees would rise from $200 to $400, retail fees from $50 to $100, vending machine fees from $15 to $30, and the replacement fee for defaced or lost licenses from $10 to $20.

 

Licensing fee changes would begin on Jan. 1, 2027


If passed, those fee changes would take effect on Jan. 1, 2027.


According to the report, the proposal matches the tax increases included in Gov. 

 

Matt Meyer’s revenue plan for the upcoming fiscal year. Meyer’s team estimated that a $1.50 per-pack cigarette tax increase and related changes would generate $18 million in the next fiscal year. 

 

Minor-Brown’s bill is projected to generate about $18.5 million in the coming fiscal year and about $26.7 million in the following fiscal year.

 

Supporters say the bill is both a fiscal and public-health measure


The report said Minor-Brown described the policy as a “fiscal and public health win,” arguing it would reduce long-term healthcare costs and generate revenue that could be reinvested into prevention and community health.


The American Lung Association’s 2026 State of Tobacco Control report gave Delaware a “D” on tobacco taxes. The group recommended increasing the cigarette tax by at least $1.50 per pack and creating greater uniformity between cigarette taxes and those on other tobacco products.

 

Opponents say the increases could hurt small businesses


The report also said some critics warned the higher tax rates could hurt small businesses that sell cigarettes and other tobacco products. Others argued that tobacco tax increases no longer generate the same level of revenue as in the past because of declining smoking rates and the rise of alternative products.


Several public commenters working in those businesses said the bill would be devastating if it became law. One commenter said, “The economy is already hard, and please don’t make it any harder.”

 

The speaker said the bill is not only about raising taxes


Minor-Brown, however, remained firm. She said, “This is not just about raising a tax. It’s also about lowering disease. It’s about lowering costs. It’s about ultimately saving lives.”

 

Image source: Delaware Online.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Reuters Exclusive: FDA’s Fast-Track Review of Nicotine Pouches Slows Over Youth and New-User Concerns
Reuters Exclusive: FDA’s Fast-Track Review of Nicotine Pouches Slows Over Youth and New-User Concerns
Reuters reported on April 1 that several popular nicotine pouch products still have not been cleared for sale in the United States despite a fast-track review pilot run by the U.S. Food and Drug Administration. Three sources said FDA reviewers have taken a cautious approach because of potential risks to youth and other non-tobacco users, including the possibility of driving nicotine addiction among adults who do not already smoke.
Apr.02 by 2FIRSTS.ai
U.S. Military Smoking Debate Spotlights E-Cigarettes and Nicotine Pouches as a “Bridge”
U.S. Military Smoking Debate Spotlights E-Cigarettes and Nicotine Pouches as a “Bridge”
At a policy forum hosted by The Hill and sponsored by PMI US, U.S. defense health officials, lawmakers and industry representatives discussed tobacco use in the military and explored the potential role of smoke-free nicotine products — including e-cigarettes and nicotine pouches — as transitional tools to help service members reduce reliance on combustible cigarettes.
PMI
Mar.23
FDA Wins Default Entry in Case Against E-Cigarette Distributor, to Seek Permanent Injunction
FDA Wins Default Entry in Case Against E-Cigarette Distributor, to Seek Permanent Injunction
The U.S. Food and Drug Administration (FDA) has made procedural progress in its lawsuit against North Carolina-based e-cigarette distributor Dream Distro LLC and its owner. A federal district judge granted the government’s request for entry of default after the defendants failed to respond to the complaint within 21 days of service. The government will next seek a default judgment, including a permanent injunction.
Apr.09 by 2FIRSTS.ai
Bulgarian Police Seize More Than 56,500 Heated Tobacco Sticks in Sofia Operation
Bulgarian Police Seize More Than 56,500 Heated Tobacco Sticks in Sofia Operation
Bulgaria’s Interior Ministry said two men aged 48 and 50 were detained during a specialised police operation in Sofia’s Krasna Polyana district for distributing e-cigarettes and tobacco without excise stamps.
Mar.17 by 2FIRSTS.ai
Imperial Brands Expects Low-Single-Digit Tobacco and NGP Net Revenue Growth in H1
Imperial Brands Expects Low-Single-Digit Tobacco and NGP Net Revenue Growth in H1
Imperial Brands released a trading update on April 14, reiterating its FY26 guidance and saying its 2030 transformation has started positively. The company said it still expects low-single-digit tobacco net revenue growth, double-digit NGP net revenue growth, 3.00% to 5.00% growth in Group adjusted operating profit, at least high-single-digit earnings per share growth, and at least GBP 2.2 billion in free cash flow for the full year.
Apr.14 by 2FIRSTS.ai
PMI U.S. to Invest About USD 50 Million in New Business Solutions Center in Tampa
PMI U.S. to Invest About USD 50 Million in New Business Solutions Center in Tampa
On March 17, PMI U.S. announced an investment of about USD 50 million in a new Business Solutions Center in Tampa, Florida. The center is expected to create about 180 direct and indirect high-skilled jobs and will consolidate business solutions, distribution operations and customer service into one hub.
Mar.18 by 2FIRSTS.ai