Mississippi Legislature to Consider Premium Cigar Tax Increase

Over the past several months, Cigar Rights of America has warned about the growing threat of state-level tax increases targeting premium cigars. As states confront mounting budget pressures tied to the implementation of the federal “Big Beautiful Bill,” lawmakers are increasingly turning to excise taxes as a means of closing fiscal gaps.

Mississippi has become the latest state to pursue this approach with the introduction of House Bill 758 (H.B. 758).

What H.B. 758 Does

In early January, Representative Bob Evans (D–Monticello) introduced H.B. 758, which would raise Mississippi’s excise tax on cigars and other non-cigarette tobacco products from 15 percent to 22.5 percent of the manufacturer’s list price. If enacted, the bill would represent a 50 percent increase for premium cigar consumers and retailers across the state.

Rep. Evans has a known history of pursuing higher tobacco taxes in Mississippi and has also introduced separate legislation this session to increase the state’s cigarette tax.

Broader Legislative Outlook

Mississippi’s proposal fits squarely within a broader national trend. As states grapple with budgetary shortfalls and new fiscal obligations tied to federal policy changes, tobacco products are often viewed as politically expedient revenue sources.

Similar efforts in other states show the willingness among lawmakers to pursue broad excise tax increases that sweep premium cigars into higher tax brackets alongside other tobacco products, despite their distinct consumer base and limited role in driving public health costs.

As the 2026 legislative cycle continues, proposals like H.B. 758 underscore a broader pattern: premium cigars are increasingly being captured by revenue-driven tax policies aimed at addressing long-term state budget pressures. CRA is actively working to oppose these tax increases across the nation. We will continue to monitor developments in Mississippi and across the country and provide updates on the implications for consumers, retailers, and manufacturers nationwide.