State legislatures focus on tax increases, flavor bans and vape registries

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With seven months of 2026 in the rearview mirror, most states have concluded their 2026 legislative sessions. Here is a recap of key legislative developments in the states.

On the excise tax front, 20 states considered increases to tobacco and nicotine taxes. Last year, 10 states passed legislation increasing tobacco or nicotine excise taxes and taxing new products such as nicotine pouches as part of broader revenue increases, a notable surge compared with typical tax activity. This year, only four states increased tobacco and nicotine taxes. Notably, South Carolina and Iowa enacted taxes to reflect the relative risk of vapor products by implementing a 5 cent per milliliter tax.  Additionally, Iowa passed a nicotine pouch tax of five cents per can. On the flip slide, Utah increased taxes on all tobacco products including hiking taxes on vapor products to 71% of the manufacturer’s price and on nicotine pouches to $1 per can. 

A principal focus this year remains excise taxation on cigarettes, vapes, nicotine pouches and other tobacco products. Many budget-strapped states are looking to excise taxes for revenue, while policymakers in some states are looking to capture new revenue from new product formats such as nicotine pouches.

In addition to taxes, flavored tobacco and vapor products remained a prominent topic in certain areas of the country.  As an example, proposals were considered in the Pacific region, such as Oregon, Washington and Hawaii. These measures failed in part due to the legislatures’ understanding of the potential negative revenue impact and the expansion of the black market that would accompany a flavor ban. 

Another defining regulatory approach in 2026 involves vapor product directories, lists of specific vape products that state law allows retailers to sell. The regulatory status of a large number of products remains unclear to retailers and the public, such as those products for which a premarket tobacco product application (PMTA) was never filed; those for which a PMTA was timely filed and the application is awaiting an order; and those for which a PMTA was denied but the application remains pending for legal reasons. These state bills create a state-based directory that requires e-cigarette manufacturers to submit information to state tobacco regulators demonstrating that the sale of their e-cigarette products in the state complies with FDA regulations and guidance. 

This year, South Carolina and West Virginia passed vapor registry bills, requiring manufacturers to submit products for inclusion in a state directory for them to be sold legally in the state. As a result, 16 states have now enacted directories.

The 2026 sessions demonstrated that state legislature remains at the forefront of tobacco and nicotine policy. While the specific mix of legislative outcomes varied by state, the overarching trend is clear: Policymakers are intensifying efforts to regulate nicotine products comprehensively, through taxation, product restrictions and targeted approval systems. These trends are expected to continue and intensify when these legislatures reconvene in 2027.

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