How do I calculate the different tax rates on cigarettes from two different states?
Cigarettes are subject to taxes throughout the United States. The federal government imposes a tax on all cigarettes sold in the U.S. no matter where they are sold. How much each state charges in cigarette tax depends largely on decisions made by each legislature. Many states try to offset lower income taxes or sales taxes by raising the rates on cigarette taxes, and new rates are constantly being proposed by state governments to adjust for current conditions.Sources of InformationMany different websites and organizations compile current cigarette tax information, shown in one place for easy comparison. Websites such as Tobacco Free Kids show state cigarette taxes along with medians and extremes. Currently, the average state cigarette tax in the U.S. is $1.34 a pack, with the lowest state being South Carolina, at $.07 cents, and the highest being Rhode Island, at $3.64.Various ExemptionsIf you are looking for a deal on a certain type of cigarette, check online prices as well as state-t