What Is the Average Cost for a Pack of Cigarettes?
Gain insight into the economics of cigarette prices. Understand the components that shape the cost of a pack and how it differs across the US.
The average cost of a pack of cigarettes in the United States involves more than just the sticker price. Various economic and regulatory factors contribute to the final amount consumers pay, leading to significant price disparities across different regions. This overview clarifies the financial landscape of cigarette purchases.
The Current National Average Cost
As of 2025, the average cost of a pack of cigarettes in the United States is approximately $8.00. Each standard pack typically contains 20 cigarettes. While $8.00 is a frequently cited average, some reports indicate the national average could be higher, around $9.74 to $10.25, reflecting recent price increases.
Key Factors Influencing Price
Federal excise taxes are a consistent component, set at $1.01 per pack nationwide since 2009. State and local excise taxes, however, introduce substantial differences. These taxes are a primary driver of price disparities, ranging from as low as $0.17 per pack in some states to as high as $5.35 per pack in others.
Beyond taxes, brand differences also influence the retail price. Premium cigarette brands carry a higher price point compared to generic or value brands. Manufacturing and distribution costs, while relatively low on a per-pack basis, also factor into the overall pricing structure.
State-Level Price Differences
Price disparities for cigarettes are most evident at the state level, primarily due to differing excise tax rates. For example, in 2025, New York leads with some of the highest prices, averaging around $11.96 to $14.55 per pack, largely driven by its substantial state tax. Other states like Maryland and the District of Columbia also feature among the highest-priced regions.
Conversely, states with lower excise taxes offer some of the most affordable cigarette prices. Missouri, for instance, has one of the lowest average costs, ranging from approximately $6.11 to $8.03 per pack, due to its minimal state tax. Other states in the Southern and Great Plains regions, such as North Carolina and North Dakota, also tend to have lower prices. These geographical trends reflect the varied approaches states take to tobacco taxation and public health policies.
Components of the Retail Price
Taxes constitute a significant portion of the retail price, encompassing federal excise taxes, state excise taxes, and often state and local sales taxes. In some instances, taxes can account for nearly half or more of the total retail price. Local taxes, imposed by cities or counties, can further increase the price in specific metropolitan areas.
The cost of tobacco and manufacturing is another component, though it represents a smaller fraction of the retail price. Wholesale and retail markups are also added to cover the costs of distribution, storage, and sales, contributing to the final price point. Additionally, major manufacturers make payments to states under the Master Settlement Agreement (MSA), which can average around $0.90 per pack, indirectly influencing the retail cost.