OLYMPIA, WA — Washington state will expand its tobacco products excise tax beginning January 1, 2026, applying a 95 percent tax to most nicotine-containing products, including vaping devices and synthetic nicotine items.
The change is the result of Senate Bill 5814, approved during the 2025 legislative session. While the bill includes several tax-related provisions, it specifically expands the statutory definition of “tobacco products” to include any product containing nicotine, regardless of whether the nicotine is derived from tobacco or produced synthetically.
Under the updated law, many products previously taxed under Washington’s vapor products tax will instead be subject to the tobacco products tax, which is calculated as a percentage of the selling price rather than by volume. The 95 percent rate already applies to products such as cigars and chewing tobacco and will now extend to most nicotine products.
The tax is administered under Washington’s tobacco products tax statute. According to the Washington State Department of Revenue, retailers and distributors will be required to comply with the expanded tax beginning in 2026, including reporting qualifying nicotine inventory held for sale at the start of the year.
Nicotine vapor products will also become subject to the state’s litter tax. Nicotine products approved by the U.S. Food and Drug Administration as smoking-cessation devices are excluded from the expanded tax.
State guidance indicates the changes will take effect statewide on January 1, 2026, altering how nicotine-containing products are taxed and reported in Washington.
