New York Governor Proposes Steep Tax on Nicotine Pouches

Kathy Hochul's 75% wholesale tax could deter smokers from switching to a much less dangerous alternative.

Apr. 10, 2026 at 7:00am

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A glowing, minimalist neon outline of a nicotine pouch against a dark background, conveying the concept of a less harmful nicotine product.A neon-outlined nicotine pouch symbolizes a safer alternative to cigarettes that could improve public health if not hindered by punitive taxation.NYC Today

New York Governor Kathy Hochul has proposed a 75% wholesale tax on nicotine pouches, a product the FDA has determined offers a much lower-risk alternative to cigarettes. Critics argue the tax would discourage smokers from making the switch, undermining public health.

Why it matters

Nicotine pouches are considered far less hazardous than cigarettes, as they do not contain tobacco or require inhalation of smoke. Taxing them at the same rate as cigarettes could deter smokers from switching to a much safer nicotine product, with negative health consequences.

The details

The Hochul administration argues the tax is meant to address "a public health concern," but experts say this rationale is flawed. Nicotine pouches have been authorized by the FDA for marketing, with the agency determining they offer "greater benefits to population health than risks" by providing a lower-risk alternative for adult smokers. The tax would sharply raise the cost of nicotine pouches, potentially discouraging smokers from making the switch.

  • In January 2026, New York State Budget Director Blake Washington announced the proposed 75% wholesale tax on nicotine pouches.
  • In late 2024, the FDA authorized the marketing of Zyn nicotine pouches, determining they meet the bar for "benefiting adults who use cigarettes and/or smokeless tobacco products and completely switch to these products."

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 announced the proposed tax, claiming it 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 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.' They therefore offer 'a lower-risk alternative for adults who smoke cigarettes.”

— FDA

“Nicotine pouches 'contain far, far fewer harmful constituents compared to traditional tobacco products.'”

— 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 require approval from the state legislature. If passed, it could face legal challenges from public health advocates arguing the tax undermines efforts to reduce smoking-related harm.

The takeaway

This case highlights the potential public health consequences of taxing nicotine products that offer a much safer alternative to cigarettes. Rather than discouraging smokers from switching, policymakers should consider ways to encourage the use of less harmful nicotine products to reduce smoking-related illness and death.