Taxing Our Vices: A Path to Healthier Vermonters

Elizabeth Hunt
Jun 2
2 min read

Nicotine is a highly addictive substance and is readily available to people of all ages, including children. It easily enters the bloodstream and often starts a lifelong battle with chemical dependence. Americans living below the poverty line are more than twice as likely to be dependent on nicotine; for cannabis, they are three times more likely to be daily users.

Using cannabis and nicotine, both easy to obtain legally and illegally, can swing your mood up and down and drain your bank account. That's a serious problem for people already at higher risk of mental illness, homelessness, and substance-use disorders.

As a pediatrician, I see the consequences of early nicotine and cannabis use regularly. Despite nicotine taxes being relatively high in Vermont—cigarettes are taxed at over $3 per pack, while non-cigarette nicotine products like vapes and pouches are taxed at 92%—we still see teens using these products at alarming rates. High taxes alone are not enough to keep highly addictive substances out of young hands.

Meanwhile, Vermont taxes cannabis products at approximately 21%—compared to 6% for alcohol purchased in a store and 10% for alcohol consumed at a restaurant or bar. Burlington and South Burlington add an additional 1% cannabis tax locally.

Vermont could standardize and increase taxes on all nicotine products and level set cannabis to 25% tax across the board. It's worth noting that cigarette taxes are calculated as a fixed cost per pack rather than a percentage, making direct comparisons with cannabis tax rates complex—but the principle is the same: consistent and meaningful taxation. Those who prefer not to pay the tax could grow their own plants for personal use at home.

What would this mean for Vermont? The 2026 projected annual statewide adult-use cannabis sales are $161.2 million. At a 25% tax rate, that represents approximately $40 million in total cannabis tax revenue—money that could go directly toward health care and programs to treat nicotine and cannabis addiction across the state.

It's also worth noting that medical marijuana and nicotine replacement products, such as nicotine gum and lozenges, are tax exempt and easy to obtain in Vermont, protecting those who rely on these products for therapeutic purposes.

As a pediatrician, I see every day how substance use affects our youngest and most vulnerable Vermonters. Smart, consistent policy, including how we tax and invest revenues from nicotine and cannabis, is one tool we have to build healthier communities. That's the kind of practical, evidence-based leadership I'll bring to Montpelier.

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