Tobacco Products | Department of Revenue

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Products other than cigarettes that contain tobacco and are prepared in a manner suitable for consumption by chewing or for smoking in a pipe or otherwise, are subject to the tobacco products excise tax.

Use the tax rate from the table below for your reporting period:

Tax Rates for Tobacco Products

Period	Tax Rate
December 31, 2020 and prior	40%
January 1, 2021 through June 30, 2024	50%
July 1, 2024 through June 30, 2027	56%
July 1, 2027 and later	62%

Tax Rates for Modified Risk Tobacco Products

Period	Tax Rate
December 31, 2020 and prior	40%
January 1, 2021 through June 30, 2024	35%
July 1, 2024 through June 30, 2027	38%
July 1, 2027 and later	41%

There is a minimum tax for moist snuff. Use the tax rate from the table below for your reporting period. The minimum moist snuff tax is proportionally increased for can sizes larger than 1.2 ounces.

Minimum Tax Per 1.2 Oz. Container of Moist Snuff

Period	Minimum Tax
December 31, 2020 and prior	No minimum
January 1, 2021 through June 20, 2024	$1.48
July 1, 2024 through June 30, 2027	$1.84
July 1, 2027 and later	$2.26

E-cigarettes, vapes, nicotine pouches, or other products that contain nicotine, but do not contain tobacco, are not considered tobacco products for taxation purposes and are subject to the nicotine products excise tax.

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Untaxed Tobacco Products

Anyone in possession of tobacco products for which the excise tax is not paid by a Colorado licensed distributor must pay the Colorado tobacco products tax within 30 days of receiving the product. This includes tobacco products such as cigars and pipe tobacco ordered on the Internet, by mail or by telephone.

Payment can be made with the Tobacco Products Tax Return for Unlicensed Activity, DR 0225 (see Forms in Number Order). Colorado statutes state that failure to pay the excise tax within 30 days will result in a 500% penalty, plus tax and interest. Tobacco products are also subject to sales or use taxes. Payment of the tax does NOT change the existing requirement that the first person or entity to bring any tobacco product into Colorado must be licensed as a tobacco distributor.