How much is Indiana's cigarette tax per pack?

Indiana's cigarette excise tax is $2.995 per pack of 20, effective July 1, 2025. That was a $2.00 increase from the previous $0.995 per pack. The figure works out to about 14.975 cents per cigarette, and ordinary 7% sales tax applies on top of the excise.

What are Indiana's alcohol excise tax rates?

Indiana levies $0.115 per gallon on beer, $0.47 per gallon on table wine, and $2.68 per gallon on distilled spirits. Because Indiana is a license state rather than a control state, spirits carry a straightforward per-gallon excise instead of a state-run markup. These taxes are paid by distributors and built into shelf prices.

How does the calculator convert bottles to gallons?

Excise taxes are charged per gallon, and one US gallon equals 128 fluid ounces. The tool multiplies the number of containers by the ounces in each, divides by 128 to get gallons, and multiplies by Indiana's per-gallon rate. A 750 ml bottle is about 25.4 ounces, so it is roughly 0.198 gallons.

Is sales tax included in these figures?

No. The amounts shown are only the Indiana excise tax. Indiana also charges its 7% statewide sales tax on tobacco and alcohol at the register, which is applied to the retail price (including the excise). Add 7% of the shelf price to estimate your full tax burden.

Why did Indiana's cigarette tax jump so much?

Indiana's 2025 budget law (HEA 1001) raised the cigarette tax from $0.995 to $2.995 per pack, tripling it, to fund Medicaid and discourage smoking. The increase moved Indiana from one of the lowest cigarette taxes in the Midwest toward the middle of the pack nationally.

Indiana Cigarette & Alcohol Tax Calculator

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This calculator shows exactly how much Indiana excise tax is built into the price of cigarettes, beer, wine, and spirits. Excise taxes are charged before you reach the register — they are paid by distributors and folded into shelf prices — so this tool makes the hidden portion visible for any quantity you buy.

How it works

For cigarettes, the math is per pack:

Cigarette excise = Packs × $2.995

For alcohol, excise is charged per gallon, so the tool first converts your container volume:

Gallons = (Containers × ounces each) ÷ 128

Alcohol excise = Gallons × per-gallon rate

Indiana’s per-gallon rates are $0.115 for beer, $0.47 for wine, and $2.68 for spirits.

Indiana excise details

Indiana tripled its cigarette tax to $2.995 per pack effective July 1, 2025, up from $0.995 — a $2.00 jump enacted in the state budget. Its alcohol taxes, by contrast, remain modest: beer at just $0.115 per gallon is among the lowest in the country. Because Indiana is a license state (not a government-monopoly control state), spirits are taxed with a clean per-gallon excise rather than a state markup.

Worked example

A case of beer (24 × 12 oz = 288 oz) and one pack of cigarettes:

Beer gallons = 288 ÷ 128 = 2.25 gal
Beer excise = 2.25 × $0.115 ≈ $0.26
Cigarette excise = 1 × $2.995 = $2.995

Note: These figures are the excise tax only. Indiana’s 7% sales tax is added at checkout on the retail price, including the excise. Verify current rates with the Indiana Department of Revenue.