Indianapolis, November 25, 2025
Indiana has experienced a substantial drop in cigarette consumption, decreasing by 40% following a $2 per pack increase in tobacco taxes. The new tax, effective July 1, has also spurred a 40% rise in enrollment in the state’s Quit Now Indiana smoking cessation program. Health officials believe that higher costs deter new users and motivate current smokers to quit, ultimately leading to improved public health and projected new annual revenue of $356 million for the state.
INDIANAPOLIS, IN — Following a significant increase in tobacco taxes, Indiana has witnessed a substantial decline in cigarette consumption and a notable rise in enrollment in smoking cessation programs.
In the first three months after the tax hike, cigarette use in the state decreased by 40%, according to the Indiana Department of Health. During the same period, participation in the state’s Quit Now Indiana program surged by nearly 40%. The tax increase, effective July 1, 2025, raised the cigarette tax by $2 per pack, bringing the total to $3 per pack. This adjustment also affected other tobacco products, including e-cigarettes and chewing tobacco.
Health officials attribute the decline in smoking rates to the higher costs associated with tobacco products, which can deter new users and encourage current smokers to quit. The director of the Indiana Department of Health’s Division of Tobacco Prevention and Cessation emphasized that tobacco use is a preventable risk factor impacting various aspects of health.
The Quit Now Indiana program offers support to individuals seeking to quit smoking, providing resources such as nicotine replacement therapies and access to trained quit coaches. Studies have shown that participants in such programs are significantly more likely to quit successfully compared to those attempting to quit without assistance.
Prior to the tax increase, Indiana’s cigarette tax was among the lowest in the nation, at $0.995 per pack. The recent hike aligns with recommendations from health advocates who have long called for higher tobacco taxes to reduce smoking rates and associated health costs.
The state anticipates that the tax increase will not only lead to improved public health outcomes but also generate significant revenue. Projections estimate that the $2 per pack increase could result in approximately $356 million in new annual revenue for Indiana.
Overall, the combination of higher tobacco taxes and enhanced support programs appears to be effectively reducing smoking rates in Indiana, contributing to better health outcomes for residents.
Frequently Asked Questions (FAQ)
What is the recent change in Indiana’s tobacco tax?
Indiana increased its cigarette tax by $2 per pack, raising the total to $3 per pack, effective July 1, 2025.
How has this tax increase affected cigarette consumption in Indiana?
Following the tax hike, cigarette use in Indiana decreased by 40% in the first three months.
What is the Quit Now Indiana program?
Quit Now Indiana is a state-sponsored program that offers support to individuals seeking to quit smoking, including resources like nicotine replacement therapies and access to trained quit coaches.
How effective is the Quit Now Indiana program?
Studies have shown that participants in Quit Now Indiana are significantly more likely to quit successfully compared to those attempting to quit without assistance.
What are the projected financial impacts of the tobacco tax increase?
The $2 per pack tax increase is projected to generate approximately $356 million in new annual revenue for Indiana.
Key Features of Indiana’s Tobacco Tax Increase and Its Impact
| Feature | Details |
|---|---|
| Tax Increase | $2 per pack, raising total to $3 per pack, effective July 1, 2025. |
| Impact on Cigarette Consumption | 40% decrease in the first three months post-tax hike. |
| Quit Now Indiana Program | Offers support to individuals seeking to quit smoking, including nicotine replacement therapies and access to trained quit coaches. |
| Effectiveness of Quit Now Indiana | Participants are significantly more likely to quit successfully compared to those attempting to quit without assistance. |
| Projected Financial Impact | $356 million in new annual revenue for Indiana. |
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Author: STAFF HERE INDIANAPOLIS WRITER
The INDIANAPOLIS STAFF WRITER represents the experienced team at HEREIndianapolis.com, your go-to source for actionable local news and information in Indianapolis, Marion County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Indianapolis 500, Indy Jazz Fest, and the Indiana State Fair. Our coverage extends to key organizations like the Indy Chamber and Visit Indy, plus leading businesses in motorsports and healthcare that power the local economy such as Indianapolis Motor Speedway and IU Health. As part of the broader HERE network, we provide comprehensive, credible insights into Indiana's dynamic landscape.
