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If you raised the excise tax to $2.64 per pack, the state/local tax portion of a pack of cigarettes would swell to $3.38 fully 30% of a selling price of $11.30 per pack, creating a wallet incentive for Nebraskans to divert their cigarette purchases to surrounding states with lower tax rates

For example, if you qualify for Tier 5 in September of 2025, youll enjoy Tier 5 benefits though December 31, 2026

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Each year, in partnership with scholars at the Mackinac Center for Public Policy, we estimate cigarette smuggling rates for each US state and the District of Columbia.[1] The most recent report uses 2022 data and finds a strong positive relationship between cigarette smuggling and tax rates across the country

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