DOVER – In an effort to reduce youth tobacco use, improve public health, align with neighboring states, and generate revenue to help offset the $532 million annual cost of tobacco-related healthcare in our state, lawmakers introduced new legislation on Friday that would increase Delaware’s tobacco tax and update its tobacco licensing system.
Sponsored by House Speaker Melissa Minor-Brown and Senate Pro Tempore Dave Sokola, House Bill 215 would raise taxes on cigarettes, vapor products, and other tobacco items, while updating tobacco licensing fees.
“Over 1,400 people in Delaware die each year due to tobacco use,” said Rep. Minor-Brown.
“And while the good news is that the prevalence of cigarette smoking has significantly declined, we’re now seeing our young people turn to e-cigarettes, nicotine pouches, and other tobacco products that didn’t even exist a decade or two ago. As a nurse, I know that these alternatives are not harmless and that there are real risks and costs associated with their use.
“HB 215 is an important step in ensuring that our future generations don’t pick up a cigarette or a vape and begin the long and painful journey into addiction. This legislation isn’t just about keeping us in line with other state tax structures, it’s about saving lives.”
Delaware’s current tobacco tax is among the lowest in the region at $2.10 per pack of 20 cigarettes. In comparison, Pennsylvania’s tax is $2.60, New Jersey’s is $2.70, Maryland’s is $5.00, and New York’s is $5.35. In addition, Delaware’s tobacco tax structure has not been updated to reflect the growing share that products like nicotine pouches and vapor products now occupy in the tobacco market.
To address this, HB 215 would update the definition of tobacco products to include any products containing, made of, or derived from tobacco or nicotine, rather than only those made primarily from tobacco.
HB 215 would raise tobacco taxes by:
- Increasing the cigarette tax from approximately $2.10 to $3.60 per pack.
- Raising the tax on other tobacco products from 30% to 45% of the wholesale price.
- Increasing the moist snuff tax from $0.92 to $1.23 per ounce.
- Expanding the vapor product tax from $0.05 to $0.25 per milliliter.
The bill would also make several changes to Delaware’s tobacco licensing system, including:
- Increasing fees for wholesalers and affixing agents from $200 to $400.
- Increasing fees for retailers from $50 to $100.
- Increasing Vending Machine fees from $15 to $30 per machine.
- Increasing the replacement fee for lost or defaced licenses from $10 to $20
Overall, Delaware’s policies and prevention methods around tobacco use are up to par with national standards, as exemplified in the American Lung Association’s 2025 State of Tobacco Control Report. However, the First State has consistently fallen behind in terms of implementing a proven tobacco-use prevention method: increasing the state’s tobacco tax.
By increasing Delaware’s cigarette tax by $1.50, and updating Delaware’s tobacco licensing system, HB 215 is bringing the state in line with public health recommendations, determined using the most current recognized criteria for effective tobacco control measures.
Tobacco is the leading cause of preventable death, annually accounting for 480,000 deaths – or 1 out of every 5 deaths – in America. In Delaware, 1,400 adults die each year as a result of smoking, and nearly 20% of high school students use e-cigarettes.
According to the World Health Organization, significantly increasing tobacco taxes is one of the most effective measures for reducing tobacco use, especially among young people.
“Research shows that taxes on tobacco products are an effective tool for discouraging use — especially among young people,” said Sen. Dave Sokola.
“Federal funding cuts have stretched essential programs and resources thin, and this legislation will help to make up lost ground while improving public health outcomes.”
Under HB 215, the new tax rates would take effect September 1, 2025, and licensing changes will begin January 1, 2026. To prevent stockpiling, a floor tax would be applied to inventory held as of August 31, 2025.
HB 215 has been assigned to the House Administration Committee.