New York State may soon add a 75 percent tax on nicotine, sending prices soaring. New York State heavily taxes cigarettes, imposing the highest cigarette excise tax in the nation at $5.35 per pack. Hochul Proposes Big New Tax on Nicotine Pouches in New YorkGetty Images Getty Images loading... Hochul has proposed expanding the state's existing 75 percent wholesale tax on tobacco products to include nicotine pouches, like ZYN, and other alternative nicotine products. Once fully implemented, experts say the added tax would generate $54 million annually in new tax revenue for New York State.