Starting next week, Illinois residents will face higher costs for nicotine products as new tax increases take effect across the state. The price hikes, set to begin July 1, apply to vapes, nicotine pouches, cigars, chewing tobacco, and cigarettes.
Vaping products and popular nicotine pouches like Zyn, currently taxed at 15%, will now be subject to a steep 45% tax — bringing them in line with cigarette taxation. Cigarette taxes are also rising by $1 per pack.
Illinois State Senator Javier Loera Cervantes (D-Chicago), who sponsored the bill, said the measure is intended to curb nicotine use and protect public health. “Nicotine is still negatively affecting the health of our residents,” Cervantes said. “We’re trying to hopefully get people away from tobacco products.”
The tax hike is expected to generate nearly $30 million in additional revenue for the state.
But not everyone is on board with the plan. Dr. Brian Erkkila, director of regulatory science for Swedish Match North America — the company behind Zyn — warned the new tax could discourage smokers from switching to alternatives.
“We’re just worried this tax increase could keep people smoking,” Erkkila said. “When you raise the price of these smoke-free options, these better alternatives, it’s harder for them to get those — and they may just stick with their cigarettes.”
Zyn pouches, often marketed as a safer alternative to cigarettes, currently cost around $8 per tin in Chicago, but prices are expected to rise significantly once the new tax takes effect.
Anti-tobacco advocates, including the American Lung Association, argue that nicotine pouches are not FDA-approved cessation tools and still carry health risks. “There is no evidence that these newer smokeless products have helped people overcome their addiction to tobacco products,” said Kristina Hamilton, the association’s Illinois advocacy director.
The Illinois Fuel & Retail Association has also expressed concern that higher prices could push consumers to shop for nicotine products across state lines, potentially hurting local businesses.
The new tax law adds Illinois to a growing list of states increasing taxes on nicotine products as part of efforts to address health risks and generate revenue.
