Key Takeaways
- Hochul’s FY 2027 budget proposal includes a 75% wholesale tax on nicotine pouches.
- The tax is expected to raise USD 18 million in FY 2027 and USD 44 million in FY 2028 after full implementation.
- A Morning Consult poll found that fewer than half of New York voters support the tax.
- 37% of respondents said nicotine pouches should be taxed at a lower rate.
- 39% of respondents said they use nicotine pouches or have close family or friends who do.
2Firsts, March 30, 2026
According to AOL, New York Governor Kathy Hochul’s proposal to raise taxes on nicotine pouches such as Zyn is facing visible opposition from New York voters.
Hochul proposes a 75% wholesale tax on nicotine pouches, expected to raise USD 44 million in FY 2028
Kathy Hochul released her FY 2027 budget proposal in January, and it included a provision to levy the same 75% wholesale tax on nicotine pouches that applies to cigarettes. The new tax is expected to raise USD 18 million in FY 2027 and USD 44 million in FY 2028 after full implementation.
Poll finds fewer than half of voters support the tax, while 37% want a lower rate
A Morning Consult poll obtained by Reason found that fewer than half of New York voters support the nicotine pouch tax. The survey was conducted from February 11 to 15 and included 517 adults.
The poll also found that 37% of respondents think nicotine pouches should be taxed at a lower rate, while 39% said they either use nicotine pouches themselves or have close family members or friends who do.
New York officials are divided over the tax’s public health effects
State Senator Nathalia Fernandez said it is worth questioning whether making nicotine pouches more expensive than cigarettes, which involve combustion and inhalation into the lungs, would actually help public health.
However, New York State Budget Director Blake Washington said during a budget briefing that nicotine pouches are a “public health concern” and that he sees cigarettes and nicotine pouches as “a distinction without a difference” because both have addictive properties. The report also said lawmakers have continued moving forward with the tax.
The article also said nicotine pouches are made from food-grade ingredients, contain no tobacco, produce no smoke, and do not create second-hand exposure, and referred to research describing them as far less harmful than cigarettes and as an effective cessation tool for smokers.
It further cited Swedish data showing that from 2008 to 2022, cigarette smoking rates among adults declined while the use of oral nicotine products such as snus increased. The article also said one analysis of Minnesota’s 95% vape tax estimated that the policy increased adult smoking and prevented 32,400 smokers from quitting.
The article concluded by noting that smoking kills about 30,000 adults each year in New York and remains the leading cause of preventable death in the state.
Image source: AOL
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