California E-Cig Excise Tax

Tax Guide for California Electronic Cigarette Excise Tax

The information stated below applies to California orders.

Beginning July 1, 2022, electronic cigarette retailers are required to collect from the purchaser at the time of sale, a California Electronic Cigarette Excise Tax (CECET) at the rate of 12.5 percent of the retail selling price of electronic cigarettes containing or sold with nicotine. Senate Bill (SB) 395 (Stats. 2021, ch. 489) enacted the Healthy Outcomes and Prevention Education (HOPE) Act, which imposes the CECET.

Beginning July 1, 2022, if you are a retailer of electronic cigarettes containing or sold with nicotine, you must have a CECET permit (account), collect the CECET from the purchaser, file a CECET return electronically, and pay the tax to California Department of Tax and Fee Administration (CDTFA). The collection of the CECET is in addition to the sales and use tax.

This guide is intended to provide general information about the new tax and registration, collection, filing, and payment responsibilities under the HOPE Act.

In addition to the HOPE Act, we administer other cigarette and tobacco products laws affecting retailers of electronic cigarettes containing or sold with nicotine. Retailers of electronic cigarettes containing or sold with nicotine also have responsibilities under the Cigarette and Tobacco Products Licensing Act of 2003. For more information, visit the California Department of Tax and Fee Administration's Tax Guide for Cigarettes and Tobacco Products