INDIANAPOLIS — A new policy report reveals that Indiana’s landmark 2025 tobacco tax increase has curbed tobacco use across the state while providing an increase to state revenue.
The study, released by the CDC Foundation and prepared by Economics for Health, analyzes the immediate market response to the tax hike using comprehensive retail sales data. The early evidence indicates that higher prices are working exactly as intended to reduce smoking rates.
According to the report, an estimated 12.6 million fewer packs of cigarettes were sold in Indiana during the final six months of 2025 compared to a simulated control state. This represents a sharp 13.8% decline in overall pack sales…