State legislatures focus on tobacco and nicotine in 2026

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The 2026 legislative sessions in state capitals across the U.S. are shaping up as another active year on tobacco and nicotine policy, following significant activity in 2025. 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.

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 seeking to capture new revenue from emerging product formats such as nicotine pouches.

Lawmakers have already introduced bills in 15 states aimed at extending tobacco tax systems to cover newer nicotine categories or increase existing rates. Several states are facing particularly aggressive tax proposals that could dramatically raise the cost of nicotine products. In New York, Gov. Kathy Hochul has proposed extending a 75% tobacco wholesale tax to include nicotine pouches to bolster declining tobacco tax revenue. Utah and Washington are both considering increasing the state cigarette tax by $2, as well as raising taxes on other nicotine products. Nebraska is holding hearings on tobacco product tax increases after the state legislature approved a tax on nicotine pouches last year.

While excise taxes remain a priority in many states during the 2026 sessions, the total number of increases enacted is expected to fall below 2025 levels. Many legislatures face shorter sessions this year, limiting the time available to advance complex tax proposals.

In addition to taxes, flavored tobacco and vapor products will remain a prominent topic in certain areas of the country. Proposals in the Pacific region, including Oregon, Washington and Hawaii, are likely to include flavor bans. On the East Coast, states surrounding Massachusetts, which currently has a flavor ban, are also expected to consider similar measures.

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 many products remains unclear to retailers and the public, including products for which a premarket tobacco 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. 

Late last year, Pennsylvania became the 14th state to pass a vapor registry bill, requiring manufacturers to submit products for inclusion in a state directory for them to be sold legally in the commonwealth. 

The 2026 sessions demonstrate that state legislatures intend to remain at the forefront of tobacco and nicotine policy. While the specific mix of legislative outcomes will vary by state, the overarching trend is clear: policymakers are intensifying efforts to regulate nicotine products comprehensively—through taxation, product restrictions, and targeted approval systems. The result of much of this legislation will be known in the next few months as most states’ legislatures adjourn in the first half of the year.

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