Tax and price

Taxes that raise the price of tobacco products in the United States and other countries are an effective way to reduce tobacco use and prevent young people from becoming smokers. Tobacco taxes that raise prices by 10% have been shown to reduce overall use among adults by about 4%. That’s because as price increases, many current tobacco users quit and others who don’t quit actually end up consuming less tobacco. It’s estimated that price and tax increases have an even bigger impact on youth and lower-income populations. Not only do higher taxes and prices help reduce tobacco use, they also generate significant new revenues because—despite the drop in use after price and tax increase—the overall demand for tobacco products remains high.

View Research by Sub-topic

Emerging tobacco products

See more about the impact of taxes on emerging tobacco products.

Impact on demand

Explore the impacts that taxes and prices have on the demand for tobacco products.

Industry pricing

See how the tobacco industry prices their products.

Minimum pricing policy

Explore the effectiveness of minimum pricing policies.

Tax levels and structure

Find out about the types of taxes governments levy on tobacco products.


Find out about tribal tobacco sales laws, how they function, and how they can be used in conjunction with one another to create a strong, effective regulatory framework.

See all related research