Effective November 1, 2025 — §40-25-2, Code of Ala. 1975, imposes a state excise tax of $0.017 per single-use consumable unit. The state tax rate will be $0.34 per pack of 20. The act levies a county tax at half of the state tax rate in the counties that have a local tobacco tax and an additional municipal tax rate at half of the existing local municipal cigarette tax rate.
The heated tobacco products tax will be collected for state and state-administered county tax purposes by affixing a revenue heated tobacco products (HTP) tax stamp. For reporting purposes, the new tax stamps will be included in the existing state cigarette (SCT) and county cigarette (CCT) tax types. Stamps for both state and state-administered counties will come in denominations of 3,000 per roll or 1,500 per sheet. A discount of 4.75 percent will be allowed for permitted wholesalers. You will be notified when the new tax stamps are available for purchase.
Contact
Business and License Tax Division
Tobacco Tax Section
P.O. Box 327555
Montgomery, AL 36132-7555
334-242-9627
Tobacco.Account@revenue.alabama.gov