DELAWARE -Democratic members of Delaware's House of Representatives are pushing legislation that would raise taxes on cigarettes and other nicotine products while updating the state’s tobacco licensing system.
The House Administration Committee voted to move forward House Substitute 1 for House Bill 215, sponsored by House Speaker Melissa Minor-Brown (D -District 17) and Senate Pro Tempore Dave Sokola (D -District 8). The proposal aims to align Delaware with neighboring states and generate revenue to offset the state’s estimated $532 million annual cost tied to tobacco-related health care.
The measure is projected to bring in $18.5 million in fiscal year 2027 and $26.7 million in fiscal year 2028.
“Over 1,400 people in Delaware die each year due to tobacco use,” said Rep. Minor-Brown.
“This bill 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 through addiction. This legislation isn’t just about keeping us in line with other state tax structures, it’s about saving lives.”
According to Minor-Brown, Delaware currently has one of the lowest cigarette taxes in the region at $2.10 per pack of 20 cigarettes. By comparison, Pennsylvania charges $2.60, New Jersey $3.00, Maryland $5.00 and New York $5.35.
The bill would increase the cigarette tax to $3.60 per pack and raise taxes on other tobacco and nicotine products from 30% to 40% of the wholesale price. It also includes increases on moist snuff, from $0.92 to $1.23 per ounce, and vapor products, from $0.05 to $0.10 per milliliter.
Additionally, the legislation updates how tobacco products are defined under state law to include items containing or derived from nicotine, addressing the growing use of products like e-cigarettes and nicotine pouches.
Changes to the licensing system are also included. Fees for wholesalers and affixing agents would rise from $200 to $400, while retailer fees would double from $50 to $100. Vending machine fees would increase from $15 to $30 per machine, and replacement licenses would go from $10 to $20.
Gov. Matt Meyer (D) has also proposed similar tax increases in his recommended fiscal year 2027 budget as part of a broader revenue plan.
According to the American Lung Association’s 2025 State of Tobacco Control Report, Delaware meets many national standards for tobacco prevention but has lagged in raising tobacco taxes, a method widely recognized as effective in reducing use.
Tobacco remains the leading cause of preventable death in the United States, accounting for 480,000 deaths each year. In Delaware, more than 1,400 adults die annually from smoking, and nearly 20% of high school students use e-cigarettes.
“Research shows that taxes on tobacco products are an effective tool for discouraging use — especially among young people,” said Sen. 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.”
If approved, the new tax rates would take effect Sept. 1, 2026, while licensing changes would begin Jan. 1, 2027. A floor tax would apply to inventory held as of Aug. 31, 2026, to prevent stockpiling.
