Starting January 5, 2026, anyone buying cigars in Maine is going to feel a real sting in their wallet. The state just pushed through a big hike in the tax on cigars, jumping from 43 percent of the wholesale price all the way up to 75 percent. That's one of the steepest rates anywhere in the country, and it means everyday cigar smokers will pay noticeably more for their favorites.
This change came as part of the state's budget bill that lawmakers passed back in July. Governor Janet Mills first suggested raising tobacco taxes in her biennial budget proposal from January 2025. She pointed out that Maine's cigarette tax hadn't gone up since 2005, leaving it the lowest in New England. That low rate, she said, played a role in the state having the highest adult smoking rate in the region and the second-highest among young people.
To give a clear picture of what this means at the counter, consider a typical cigar with a suggested retail price of $9.50. Before the increase, the tobacco tax on it came to about $2.04. Now, that same cigar carries roughly $3.56 in tax—an extra $1.52. For something on the higher end, like a $15.99 cigar, the tax used to be around $3.44. After the change, it climbs to about $6. Of course, shops decide exactly how much of that extra cost gets passed on to customers, so the final price could shift a bit depending on where you buy.
Even before this hike, Maine already ranked high for cigar taxes. With no cap on how much tax could be added per cigar, a $9.50 stick there had the ninth-highest price at checkout compared to other states. Now, with the new 75 percent rate and still no cap, Maine ties with New York and Alaska for what amounts to the second-highest effective cigar tax in the nation. Only Utah tops it, with an uncapped 86 percent of wholesale price. A few states show higher percentages on paper, like Minnesota at 95 percent, but most of those have a limit—such as Minnesota capping the state tax at 50 cents per cigar no matter the price.
The increases don't stop at cigars. Cigarette packs now carry a tax of $3.50, up from $2. Smokeless tobacco, chewing tobacco, and snuff see similar jumps. For products sold in one-ounce packages or larger, the tax rises from $2.02 per ounce to $3.54 per ounce. Smaller packages under one ounce get hit with a flat $3.54 per package. The new law also sets up a system where, if cigarette taxes go up after January 5, 2026, the rates on other tobacco products will automatically adjust to match the same percentage increase.
For many longtime smokers who enjoy a good cigar after work or on the weekend, this kind of sudden jump adds up over time. A regular habit that once fit comfortably into the budget now demands a harder look at spending. Some might cut back on how often they indulge, while others could start shopping around more carefully or even consider alternatives. Retailers, too, face tough choices about pricing to keep customers coming through the door.
This tax shift reflects broader efforts to address smoking rates and bring in revenue for the state. Maine's leaders see it as a way to discourage tobacco use, especially after years without adjustments that left rates lagging behind neighbors. Whether it actually lowers smoking numbers remains to be seen, but one thing is certain: starting this year, picking up a box of cigars in Maine costs a whole lot more than it did just days ago.
Smokers across the state are already talking about the change, weighing whether to stock up ahead of time in the future or simply accept the higher prices. For anyone who appreciates the ritual of lighting up a quality cigar, these new numbers serve as a reminder of how quickly costs can rise when policy shifts hit home.
