In her proposed budget for Fiscal Year 2027. The Governor of New York State has proposed levying a 75% wholesale tax, identical to that applied to cigarettes, on nicotine pouches such as Zyn. A Morning Consult poll of 517 adults reveals that less than half of New York voters support this tax, while 37% of respondents believe that nicotine pouches should be subject to a lower tax rate.
Key Takeaways
- In her FY2027 budget proposal, Governor Hochul proposed levying a 75% wholesale tax on nicotine pouches.
- This tax is projected to generate $18 million in revenue during FY2027, and $44 million in FY2028 once fully implemented.
- A Morning Consult poll indicates that less than half of New York voters support this tax.
- 37% of respondents believe that nicotine pouches should be subject to a lower tax rate.
- 39% of respondents stated that they use nicotine pouches themselves, or have friends or family members who use such products.
Hochul’s Proposed Tax Faces Voter Opposition
According to an AOL report dated March 30, 2026. New York Governor Kathy Hochul’s plan to increase taxes on nicotine pouches such as Zyn is facing significant opposition from New York State voters.
Wholesale Tax on Nicotine Pouches Expected to Generate $44 Million
Governor Hochul unveiled her proposed budget for Fiscal Year 2027 this past January. The proposal includes levying a 75% wholesale tax on nicotine pouches, the same rate currently applied to cigarettes.
This new tax is projected to generate $18 million in revenue during FY2027, and is expected to bring in $44 million in revenue during the following fiscal year. FY2028 once it is fully implemented.
Poll Shows Less Than Half of Voters Support the Tax
A Morning Consult poll obtained by Reason reveals that less than half of New York State voters support taxing nicotine pouches. The survey was conducted between February 11 and February 15, polling a total of 517 adults.
The survey also revealed that 37% of respondents believe nicotine pouches should be taxed at a lower rate, while 39% indicated that they use nicotine pouches themselves, or have close relatives or friends who use such products.
Divergent Views on Taxation and Public Health Impacts
New York State Senator Nathalia Fernandez stated that if nicotine pouch products that are not combusted or inhaled into the lungs are taxed at a higher rate than cigarettes, it is questionable whether such a policy truly serves the interests of public health.
However, New York State Budget Director Blake Washington asserted during a budget briefing that nicotine pouches constitute a “public health issue,” arguing that there is “no fundamental difference” between cigarettes and nicotine pouches, as both are addictive. Reports further indicate that New York lawmakers have proceeded with advancing this tax measure.
International and Domestic Evidence on Nicotine Product Policies
The reports also cite data from Sweden, noting that between 2008 and 2022. The prevalence of cigarette smoking among Swedish adults declined as the usage of oral nicotine products such as snus increased.
An analysis regarding Minnesota’s 95% tax rate on e-cigarettes estimated that this tax burden led to an increase in adult smoking and resulted in 32,400 smokers failing to successfully quit.
Smoking Remains Leading Cause of Preventable Death in New York
In New York State, approximately 30,000 adults die annually from smoking-related causes, making smoking the leading cause of preventable death in the state.
