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When does Indiana cigarette tax increase go into effect? New Indiana cigarette tax sends smokers and sales across state lines Business The Indiana General Assembly has delivered a resounding victory for kids and public health by passing a $2 per pack cigarette tax increase, along with increases on e cigarettes and other tobacco products. When Indiana lawmakers earlier this year approved an increase in the state's tobacco taxes to help plug a $2 billion budget shortfall, they did so at the objection of hundreds of businesses Lawmakers eying tobacco tax increase to help close $2 million budget shortfall The results are in: 12.6 million FEWER packs of cigarettes were sold in Indiana in the second half of 2025 following our work to increase the tobacco tax. In addition, e cigarette sales

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