Study: Illinois lost $334 million in tax revenue from cigarettes smuggled into state – Center Square

The report from the nonprofit, nonpartisan Tax Foundation shows excessive tax rates on cigarettes induce substantial illicit market movement of tobacco products into high-tax states from low-tax states. The study found that the biggest increase in the country in cigarette smuggling from 2019 to 2020 was in Illinois. That is when Illinois increased its cigarette tax rate by $1 a pack, resulting in an excise tax of $2.98. In Cook County, $3 is added on and another $1.18 from the city of Chicago, bringing the total taxes per pack in Chicago to $7.16, the highest in the country.