# Tax - General (GTG)

## Title 12. Tobacco Tax

### Subtitle 1. Definitions; General Provisions

#### Section 12-105

(a) The tobacco tax rate for cigarettes is:

  (1) $5.00 for each package of 20 cigarettes; and

  (2) 25 cents for each cigarette in a package of more than 20 cigarettes.

(b)

  (1) Except as provided in paragraph (2) of this subsection, the tobacco tax rate for other tobacco products is 60% of the wholesale price of the tobacco products.

  (2)

    (i) In this paragraph, "pipe tobacco" and "premium cigars" have the meanings stated in Sec. 16.5-101 of the Business Regulation Article.

    (ii)

      (1) Except as provided in subsubparagraph 2 of this subparagraph, the tobacco tax rate for cigars is 70% of the wholesale price of the cigars.

      (2) The tobacco tax rate for premium cigars is 15% of:

      (A) the wholesale price of the premium cigars; or

      (B) for premium cigars sold by an out-of-state seller, the price determined under subsection (c) of this section.

    (iii) The tobacco tax rate for pipe tobacco is 30% of:

      (1) the wholesale price of the pipe tobacco; or

      (2) for pipe tobacco sold by an out-of-state seller, the price determined under subsection (c) of this section.

(c)

  (1) For premium cigars and pipe tobacco sold by an out-of-state seller, the tobacco tax rate applies to:

    (i) the actual price paid by an out-of-state seller for a stock keeping unit; or

    (ii) if the actual price paid by an out-of-state seller for a stock keeping unit is not available, the average of the actual price paid by an out-of-state seller for a stock keeping unit over the 12 calendar months before January 1 of the year in which the sale occurs.

  (2) The Comptroller shall adopt regulations to implement this subsection.

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Md. Code Ann., Tax-Gen. (as displayed at mgaleg.maryland.gov, October 16, 2026)