Compliance
Indiana Vaping and Tobacco Product Tax Laws
SE Imports & Wholesale, https://seiw-commerce.medusajs.site/us/indiana-tax-laws
Indiana has updated its tax rates on vaping products and tobacco-related items as part of House Enrolled Act 1001 (2025). As your wholesale partner, SE Imports & Wholesale ensures all products are taxed correctly and in full compliance with state law.
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Closed System Cartridge (CSC) Tax – Now 30%
#Disposable nicotine vapes (Mr. Fog, Geekbar, Breeze Smoke, etc.) and delta-8 THC/hemp-derived disposables & cartridges all fall under the CSC category. These products are now taxed at 30% of the wholesale price (up from 15%).
This excise tax is collected and remitted by SE Imports & Wholesale.
CSC taxes appear as a separate line item on invoices for Indiana Orders.
Retailers should ensure CSC tax is collected by their supplier to avoid compliance issues.
Open System / Electronic Cigarette Tax – Now 30%
#Open-system devices and consumables (refillable mods, pod systems, tanks, coils, e-liquids—including 0 mg) are subject to a 30% electronic cigarette tax on the retail price, in addition to the 7% sales tax.
Retailers are responsible for collecting and remitting both taxes at the point of sale.
Sales tax is calculated on the full total, including the vape tax.
Other Tobacco Products (OTP) Tax – Now 30%
#Most tobacco products (cigars, chew, snuff, etc.) now carry a 30% OTP tax on the wholesale price (up from 24%).
Moist snuff is taxed at $0.50 per ounce (up from $0.40).
OTP tax is included in the listed unit price on your invoice—no separate line appears.
Summary of Current Indiana Tax Rates
#(as of July 1, 2025)
| Product Category | Tax Base | Rate | Collected By |
|---|---|---|---|
| Closed System Cartridges | Wholesale price | 30% | SE Imports & Wholesale (Wholesaler) |
| Open System / Vape Hardware | Retail price | 30% + 7% | Retailer |
| Vape Juice / E-Liquid | Retail price | 30% + 7% | Retailer |
| Other Tobacco Products (non-snuff) | Wholesale price | 30% | SE Imports & Wholesale (Wholesaler) |
| Moist Snuff / Alternative Nicotine Pouch | Per ounce | $0.50/oz | SE Imports & Wholesale (Wholesaler) |
| All Applicable Retail Sales | Sales tax on retail | 7% | Retailer |
Official Guidance
#For the complete statutes, definitions, and taxability matrix on CSC, electronic cigarette, OTP, and related taxes, please visit the Indiana Department of Revenue:
Our Commitment to Compliance
#SE Imports & Wholesale remains committed to full transparency and legal compliance. We handle CSC and OTP tax remittance for you and will continue to reflect updated tax law changes on your invoices accurately.
If you have any questions about these taxes or need help understanding how they affect your store:
SE Imports & Wholesale
- Phone
- (317) 600-3551
- sales@sewholesale.com