Will Iowa Start Taxing Vaping Products?

Iowa lawmakers may take another look this year at whether vaping products should be taxed like cigarettes.
Senate Majority Leader Mike Klimesh says he plans to talk with fellow Republicans about adding a tax on the liquid pods or cartridges used in e-cigarettes.
Klimesh says if a product is delivering nicotine, it may warrant a tax — but he also worries Iowa could lose sales to nearby states if the tax is too high. He says that could be especially tough on retailers in border communities, where customers might cross state lines to buy vaping supplies.
Several neighboring states already tax vaping products, including Nebraska, Minnesota, Wisconsin and Illinois. South Dakota and Missouri do not.
Klimesh, a former smoker, introduced legislation during the 2025 session that would have taxed vaping liquid and nicotine pouches — the small packets placed inside the lip. But Klimesh says now that he’s in a leadership role, his job is different, and he’s watching to see whether there’s support among Senate Republicans to keep the conversation going.
House Speaker Pat Grassley says House Republicans haven’t discussed a vape tax so far, but he says it’s something they could be open to — though it’s not a major priority in the House at this point.
State health officials report adult cigarette smoking in Iowa has dropped to about 5.6 percent. At the same time, vaping continues to rise — with about 23.5 percent of Iowans ages 18 to 24 reporting they vape regularly.



