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FY 2025-31, Changes to the Tobacco Products Tax

News – Friday, June 27, 2025

Public Act (P.A.)104-0006 makes several changes for Tobacco Products.
Effective July 1, 2025:

  • a uniform tax rate is established for tobacco products sold or otherwise disposed of to retailers or consumers located in Illinois. Moist snuff will no longer be taxed based on weight;
  • the tax rate of the wholesale price of tobacco products sold or otherwise disposed of to retailers or consumers located in Illinois increases;
  • the tobacco products definition is updated to include new products with certain exceptions; and
  • the annual Tobacco Retailer License fee for retailers of tobacco products will increase.

Effective January 1, 2026:

  • the electronic filing exception is eliminated, requiring all returns to be electronically filed.

This bulletin also contains a reminder about Illinois Tobacco Uniformity that is not part of the changes made in P.A. 104-0006.