Official websites use .maryland.gov

A .maryland.gov website belongs to an official government organization in Maryland.

Secure websites use HTTPS certificate

A lock icon () or https:// means you’ve safely connected to the official website. Share sensitive information only on official, secure websites.

en English
Search
Close this search box.

Retailer to Consumer Cigarette Minimum Price Calculation

  1. Multiply the wholesaler to retailer purchase price from your invoice by the 8% retailer cost of doing business minimum markup.
  2. A fractional part of a cent equal to one-tenth of a cent or more in the result of step 1 must be rounded off to the next highest cent.
  3. Add the result from step 1 to the wholesaler to retailer purchase price.
  4. The result of step 3 is the minimum price that you may sell to consumers.

Example:
$ 112.00 Purchase price per carton
     X .08 Cost of Doing Business markup (8%)*
$ 8.96

$ 112.00 Purchase price per carton
     +8.96 Result from step 1
$ 120.96 Minimum retailer to consumer selling price per carton

*Per the Annotated Code of Maryland, Trade Regulation, Sec’s. 11-501 (d)(1) and 11-503 (b)(1)