Massive Tobacco Tax Hike Proposed in West Virginia

[JohnS]

Massive Tobacco Tax Hike Proposed in West Virginia

February 16, 2026 - Charlie Minato

Currently, compared to the other 49 states and the District of Columbia, West Virginia’s tax on cigars is decidedly middle of the pack.

However, a new bill would make it one of the highest in the nation.

H.B. 5631 has been proposed and would significantly increase the state’s taxes on tobacco and nicotine products. For cigars and other tobacco products excluding cigarettes, the tax rate would increase from 12 percent of the wholesale price to 51 percent of the wholesale price.

halfwheel estimates that a cigar with an MSRP of $9.50 likely pays around 57 cents in state excise taxes, meaning, using industry standard margins, a consumer should expect to pay $10.07 before sales tax. If H.B. 5631 were to become law, that same cigar would pay $2.42 in taxes, meaning the price would jump to $11.92 before sales tax. The more expensive the cigar, the more impacted the cigar will be.

West Virginia’s tax rate of 12 percent, uncapped, is the 26th highest in the nation. If H.B. 5631 were to pass, it would be the 8th highest in the nation, in between California and Hawaii.

In addition, the bill would increase the tax on a pack of cigarettes from $1.20 to $2.70. Unfortunately, the bill also dramatically increases the taxes paid by e-cigarettes and vaping products, which might make the bill more likely to pass than if it focused solely on combustible tobacco products.

The bill was introduced by six Republican delegates. Currently, it has no other co-sponsors.

Source: https://halfwheel.com/massive-tobacco-tax-hike-proposed-in-west-virginia/462501/