News – Friday, June 27, 2025
FY 2025-31, Changes to the Tobacco Products Tax
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.
See FY 2025-31, Changes to the Tobacco Product Taxes, for more information.