Current tobacco tax rates:
- Cigars – 65 percent of the wholesale sales price. The maximum tax is $0.50 per cigar.
- Moist Snuff – $1.78 per ounce. The minimum tax is $2.14 per retail container.
- All other tobacco products – 65 percent of the wholesale sales price.
Tobacco products include: cigars, smokeless tobacco (snuff, chewing tobacco, SNUS, dissolvables containing tobacco, etc.), blunt wraps, pipe tobacco, shisha, roll-your-own, and any other kinds and forms of tobacco that can be chewed or smoked, except cigarettes.
Check out our “Cigarette Tax Overview”
page to read more about Oregon’s cigarette tax laws.
Moist snuff includes any form of tobacco that is not intended to be smoked or placed in the nasal cavity.
You must keep receipts and invoices for tobacco products for 5 years, or until the products are sold, whichever is longer. Receipts and invoices must be available for inspection by us. Read more about the inspection process.
If you purchase untaxed tobacco products, you’re responsible for paying the tax. You must file an Oregon Unlicensed Tobacco Quarterly Tax Return, Form 531, for every quarter you purchase untaxed tobacco products.
You must apply for a Permit for Transportation of Untaxed Tobacco Products to possess, acquire for transportation, or transport untaxed tobacco products in Oregon. You can complete and submit an application for a Permit for Transportation of Untaxed Tobacco Products electronically using Revenue Online.
You need an Oregon Distributor License before distributing tobacco products in Oregon. You must be licensed for each location where you sell tobacco products. Distributor licenses are non-transferable. Read more about the licensing process
Penalty and interest
We’ll charge a penalty of 5 percent of the amount due for any failure to file a report or return or failure to pay the tax by the due date. If the amount due isn’t paid within 30 days, we’ll charge an additional 20-percent penalty.
Interest is added to any unpaid amount, calculated from the time the tax becomes due. Interest will be at the rate established under Oregon law.
Additionally, you may be subject to a civil penalty of up to $1,000 per violation of state other tobacco products tax laws.