The North Dakota tobacco tax works out to 44 cents on a standard 20-cigarette pack, 28% of the wholesale price on cigars and pipe tobacco, 60 cents per ounce on snuff, and 16 cents per ounce on chewing tobacco. A federal excise tax of about $1.01 per pack sits on top of the state rate for cigarettes, and North Dakota offers no personal-use exemption for tobacco bought in another state or online.
Cigarette Rate
North Dakota charges its cigarette tax in mills, where one mill equals one-tenth of a cent. The per-cigarette rate depends on weight:
- Class A cigarettes (3 pounds or less per thousand) are taxed at 22 mills each. That is 44 cents on a 20-cigarette pack and 55 cents on a 25-cigarette pack.
- Class B cigarettes (more than 3 pounds per thousand) are taxed at 22.5 mills each, or 45 cents on a 20-cigarette pack.
Nearly every major brand is Class A, so 44 cents per pack is what most consumers pay in state tax.1North Dakota Office of State Tax Commissioner. Cigarette and Tobacco Products Tax State law defines a cigarette as any roll of tobacco wrapped in paper or any substance other than tobacco, which keeps cigarettes and cigars in separate tax categories.
Roll-Your-Own Tobacco
Roll-your-own tobacco is taxed as cigarettes rather than at a wholesale-price rate. Every 0.09 ounces counts as one cigarette, so a one-ounce pouch is taxed as roughly 11 cigarettes.1North Dakota Office of State Tax Commissioner. Cigarette and Tobacco Products Tax Packages sold in the state must contain at least 0.60 ounces.2North Dakota Legislative Branch. North Dakota Century Code Chapter 57-36 – Tobacco Products Tax Law
Cigars, Pipe Tobacco, Snuff, and Chew
Non-cigarette products do not share one rate. The state splits them into three categories with different structures:
- Cigars and pipe tobacco: 28% of the wholesale purchase price, meaning what the distributor pays the manufacturer before any discounts.
- Snuff: 60 cents per ounce, with partial ounces taxed proportionally.
- Chewing tobacco: 16 cents per ounce, also proportional for partial ounces.
The per-ounce calculations use the net weight listed by the manufacturer, not the weight at retail.2North Dakota Legislative Branch. North Dakota Century Code Chapter 57-36 – Tobacco Products Tax Law Applying the 28% wholesale rate to snuff or chew, or vice versa, produces the wrong tax.1North Dakota Office of State Tax Commissioner. Cigarette and Tobacco Products Tax
E-Cigarettes and Vaping Products
Electronic smoking devices, including e-cigarettes and vape pens, fall under the state’s tobacco licensing framework. Anyone selling them needs a license from the Attorney General, and distributors must report them on their monthly returns.2North Dakota Legislative Branch. North Dakota Century Code Chapter 57-36 – Tobacco Products Tax Law
The Tax Commissioner’s rate schedule, however, does not list a separate excise rate for electronic devices or liquid nicotine. The 28% wholesale rate covers cigars and pipe tobacco, and the per-ounce rates cover snuff and chew, but neither clearly captures vaping hardware or e-liquid. North Dakota requires licensing and reporting for these products without imposing a dedicated excise tax on them beyond ordinary sales tax.1North Dakota Office of State Tax Commissioner. Cigarette and Tobacco Products Tax
Federal Tax on Top
The federal government adds its own excise tax to tobacco. Standard cigarettes are taxed at $50.33 per thousand, which comes to about $1.01 per pack of 20.3Alcohol and Tobacco Tax and Trade Bureau. Federal Excise Tax Increase and Related Provisions Large cigars carry a federal rate of 52.75% of the manufacturer’s price, capped at 40.26 cents per cigar. These amounts are collected from manufacturers and importers before the product reaches a North Dakota distributor, so they appear in the shelf price rather than as a separate line.
Tobacco Bought Out of State or Online
North Dakota offers no personal-use exemption. If you buy cigarettes online, in another state, or from any source that did not collect the North Dakota excise tax, you owe the full tax yourself.1North Dakota Office of State Tax Commissioner. Cigarette and Tobacco Products Tax Even a single pack triggers the obligation.
Consumers must file a return with the Tax Commissioner by the tenth day of each calendar quarter covering untaxed tobacco acquired during the prior quarter. The return has to show the quantity purchased, and payment is due with the filing.2North Dakota Legislative Branch. North Dakota Century Code Chapter 57-36 – Tobacco Products Tax Law The rates match what distributors pay: 22 mills per cigarette, 28% of wholesale for cigars and pipe tobacco, and the per-ounce rates for snuff and chew.
Seller Licensing
Anyone selling cigarettes, cigars, snuff, electronic smoking devices, or other tobacco products in the state has to hold a license from the Attorney General before making any sales. Tax returns go to the Tax Commissioner, but the licensing itself runs through the AG’s office.4North Dakota Attorney General. Tobacco Two license types exist:
- Distributor license: $25 per location, plus a $1,000 surety bond with the initial application. It does not authorize retail sales.
- Dealer (retail) license: $15 per outlet. A dealer cannot buy tobacco from an unlicensed distributor.
Each physical location needs its own license. Licenses expire every June 30. Renewing late costs $50 per license as a reinstatement fee, capped at $500 per licensee in any fiscal year.2North Dakota Legislative Branch. North Dakota Century Code Chapter 57-36 – Tobacco Products Tax Law Each license must be displayed at the location it covers. Distributor and dealer returns are filed electronically through the state’s ND TAP system, with monthly returns generally due by the 15th of the following month.
Penalties
A late or missing return carries a penalty of 5% of the tax owed or $5, whichever is greater, plus interest at 1% per month starting the second month after the return was due. The Tax Commissioner can waive some or all of the penalty for excusable delays, but a waiver is discretionary.2North Dakota Legislative Branch. North Dakota Century Code Chapter 57-36 – Tobacco Products Tax Law
The Attorney General can revoke a distributor’s or dealer’s license for violating any part of the tobacco tax chapter. A revoked licensee cannot obtain a new license for one year, and selling tobacco after revocation is a separate violation. Tobacco in the possession of a violator can be confiscated and forfeited to the state.2North Dakota Legislative Branch. North Dakota Century Code Chapter 57-36 – Tobacco Products Tax Law Criminal violations are Class A misdemeanors, which in North Dakota carry up to 360 days in jail and a fine of up to $3,000.