New York has passed a 75% wholesale tax on nicotine pouches, bringing Zyn, On!, and similar products under the same tax rate as cigars. Governor Kathy Hochul signed the $268 billion state budget into law on May 28, making the tax effective immediately. The change is projected to generate an additional $50 million per year in state tax revenue starting in fiscal year 2028.
New York joins an international trend of stricter nicotine pouch regulation. France recently criminalized the possession and sale of nicotine pouches with penalties of up to five years in prison.
What Changed in New York
Nicotine pouches like Zyn and On! were previously not classified as tobacco products in New York. The new budget closes that gap by applying the state’s existing 75% wholesale tobacco tax to all alternative nicotine products. This was initially proposed in the executive budget earlier this year and faced pushback from industry groups and harm reduction advocates before ultimately passing.
The tax structure differs from cigarettes, which are taxed at $5.35 per pack in New York — one of the highest cigarette tax rates in the country. The 75% wholesale rate on pouches mirrors the rate applied to cigars.
How Much Will Zyn Cost Now in New York?
Industry estimates suggest the wholesale tax could add $2–4 to the retail price of a can of nicotine pouches. A can of Zyn that previously retailed for around $5–7 could climb to $8–10 or more, depending on how retailers and distributors pass along the cost.
At those prices, the cost advantage over cigarettes — a major reason many smokers switch — narrows considerably. A pack-a-day cigarette habit in New York costs approximately $3,500–4,000 per year at $5.35/pack. A can-a-day pouch habit, at the new prices, could cost $2,900–3,600 per year — still cheaper, but no longer the dramatic savings it once was.
PMI and Industry Response
PMI U.S., the American arm of Philip Morris International (which owns Zyn), issued a statement arguing the tax moves in the wrong direction on affordability and public health. The company warned the tax will keep more people smoking cigarettes, redirect demand to unregulated markets, and fuel illicit trade.
Tobacco control advocates support the tax, arguing that all nicotine products should be treated equally to discourage youth use. State Budget Director Blake Washington described cigarettes and nicotine pouches as a distinction without a difference.
How This Compares to Other State Tax Policies
New York’s move is part of a broader trend of states reconsidering how to tax alternative nicotine products. Compare with:
- Federal level: The FDA’s new enforcement policy has shifted toward allowing more unauthorized vaping products on the market
- Other states: Many are still debating whether to tax nicotine pouches as tobacco or create a separate category with lower rates
- International: The WHO recently released its first report on nicotine pouches, which harm reduction advocates criticized as unbalanced
What to Do If You’re a Pouch User in New York
If you use Zyn, On!, or similar nicotine pouches in New York, here are your options:
- Buy locally: Prices will increase immediately. Shop around — different retailers may pass on the tax at different rates
- Online orders: Some online retailers may not yet be configured to collect the new tax, though this is likely a temporary gap
- Out-of-state purchases: Border shopping becomes more attractive, but New York has enforcement mechanisms to address this
- Consider alternatives: Compare the total cost of pouches vs. vaping or other nicotine products
For a full list of legally available products, check the FDA Authorized Vapes List to understand which nicotine products have federal authorization.
