American Lung Association Statement on Recent Tobacco Tax Increase Findings

The CDC Foundation released a brief report from the Economics of Health highlighting the early results of Indiana’s 2025 tobacco tax increase. Indiana’s tobacco tax increase raised cigarette prices by roughly $2.00 per pack, resulting in a reduction in cigarette pack sales. The report found that e-cigarette unit sales were lower and prices higher after the law went into effect.

“Indiana’s tobacco tax increase is already delivering the kind of public health impact advocates and researchers expected to see,” said Tiffany Nichols, advocacy director at the American Lung Association. “The early data show higher tobacco prices are reducing cigarette and e-cigarette sales across the state, particularly among products that are often used by youth. These findings reinforce that raising tobacco taxes remains one of the most effective tools to prevent addiction, reduce tobacco-related disease, and protect the health of Hoosiers.”

“These findings show that strong tobacco control policies produce real results. Indiana’s tobacco tax increase is reducing consumption, particularly among products that appeal to youth, while generating additional revenue that can further support public health priorities,” Nichols continues.