Louisiana joined Arkansas and North Carolina in implementing a cigar tax cap, putting a 50-cent ceiling on each cigar. Passed by the state legislature and signed into law by Governor Jeff Landry, the measure will take effect January 1, 2026.
Sponsored by Rep. Marcus Bryant, the law applies to cigars wholesale priced at $2.50 or more, which includes virtually all premium handmade cigars. Those under that threshold will continue to be taxed at 20% of the wholesale price.
The Premium Cigar Association (PCA) praised the legislation, calling it a victory for small businesses and cigar consumers. PCA, which held its annual trade show in New Orleans in 2025 and returns for 2026, provided testimony and advocacy support alongside local Louisiana tobacconists and distributors.
“This positive development in Louisiana is yet another indicator of how the state is supporting its small business community and their patrons,” said PCA executive director Joshua Habursky. “The economic impact of the New Orleans-based trade show was shared with the legislature, as was the positive impact of cigar tax caps throughout the nation. We appreciate the support of the legislature and Governor Landry with this positive step.”
