OLYMPIA, Wash. – Starting January 1, 2026, nicotine products in Washington will be subject to the tobacco products tax.
This change affects all nicotine products, whether derived from tobacco or synthetically made, aligning them under the same taxation umbrella as traditional tobacco products.
Previously, some nicotine products, such as e-cigarettes and synthetic nicotine pouches, were taxed differently under the vapor products tax.
The new regulation now includes items such as synthetic nicotine pouches and disposable vapor products, which were not previously taxed.
Retailers and distributors must report the value of their existing nicotine product inventory on their first return due after January 1, 2026.
A new line on the return will read, “Pre-existing inventories of nicotine products as of January 1, 2026.”
The tobacco products tax is based on the taxable sales price of nicotine products. For products purchased from non-affiliated sellers, the purchase price will be used to determine the taxable amount. If affiliated, the actual selling price will be used.
Additionally, the litter tax will now apply to nicotine-containing vapor products, which were previously exempt. There will be no credit for taxes previously paid under the vapor products tax for these items.
Businesses selling tobacco products must obtain a tobacco endorsement for each location.
