New York Governor Proposes Steep Tax on Nicotine Pouches

Kathy Hochul's 75% Wholesale Tax Could Deter Smokers From Switching to Less Dangerous Alternative

Apr. 1, 2026 at 7:00am

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New York Governor Kathy Hochul has proposed a 75% wholesale tax on nicotine pouches, a move that experts say could discourage smokers from switching to a much less harmful alternative. The state's budget director claims the tax is meant to address a 'public health concern', but critics argue it ignores the significant health benefits of nicotine pouches compared to traditional cigarettes.

Why it matters

Nicotine pouches have been found to be significantly less harmful than cigarettes, offering smokers a lower-risk alternative. By taxing them at the same rate as cigarettes, the proposed measure could perversely deter smokers from making the switch, undermining public health.

The details

The proposed 75% wholesale tax on nicotine pouches in New York was announced by state Budget Director Blake Washington, who claimed it was meant to address 'a public health concern'. However, experts argue this ignores the substantial health benefits of nicotine pouches compared to traditional cigarettes. The FDA recently authorized the marketing of nicotine pouches, finding they 'offer greater benefits to population health than risks' by providing a lower-risk alternative for adult smokers. Studies have shown nicotine pouches can be effective in helping smokers quit or reduce their cigarette consumption, especially among low-income individuals who would be disproportionately affected by the tax.

  • The FDA authorized the marketing of Zyn nicotine pouches in two doses and 10 flavors in January 2021, just before the end of the Biden administration.
  • A 2025 study found that 'daily nicotine pouch use is most prevalent among adults who recently quit using another tobacco product'.
  • A randomized trial reported in 2024 found that nicotine pouches were especially effective at reducing cigarette consumption among low-income smokers.

The players

Kathy Hochul

The Governor of New York who has proposed the 75% wholesale tax on nicotine pouches.

Blake Washington

The New York State Budget Director who claims the tax is meant to address a 'public health concern'.

Matthew Farrelly

The director of the Office of Science at the FDA's Center for Tobacco Products, who said the data shows nicotine pouch products 'meet the bar by benefiting adults who use cigarettes and/or smokeless tobacco products and completely switch to these products'.

Mary Hrywna

A tobacco control specialist at the Rutgers School of Public Health, who notes that nicotine pouches 'contain far, far fewer harmful constituents compared to traditional tobacco products'.

Ray Niaura

A professor at New York University's School of Global Public Health, who says the FDA's Zyn decision implicitly acknowledged that nicotine pouches are 'much safer than cigarettes'.

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What they’re saying

“We see it as a distinction without a difference.”

— Blake Washington, New York State Budget Director

“The data show that these nicotine pouch products meet that bar by benefiting adults who use cigarettes and/or smokeless tobacco products and completely switch to these products.”

— Matthew Farrelly, Director of the Office of Science at the FDA's Center for Tobacco Products

“Nicotine pouches contain 'substantially lower amounts of harmful constituents than cigarettes'.”

— Mary Hrywna, Tobacco control specialist at the Rutgers School of Public Health

“The FDA's Zyn decision implicitly acknowledged that nicotine pouches are 'much safer than cigarettes'.”

— Ray Niaura, Professor at New York University's School of Global Public Health

What’s next

The proposed 75% wholesale tax on nicotine pouches in New York will need to be approved by the state legislature before it can take effect.

The takeaway

Governor Hochul's proposed tax on nicotine pouches, which are a much less harmful alternative to cigarettes, could undermine public health by discouraging smokers from making the switch. This policy decision appears to ignore the substantial evidence showing the significant health benefits of nicotine pouches compared to traditional tobacco products.