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M. BURR KEIM AGENCY · License & Permit Surety Bonds · Reviewed November 2026

Federal and State Cigar, Cigarette and Tobacco Bond

A federal or state tobacco bond is a surety bond required for certain manufacturers, distributors, wholesalers, and retailers that handle cigarettes, cigars, or other tobacco products. It protects the government against unpaid excise taxes and other covered obligations.

Apply for This Bond Online How to Apply Questions

At a glance

Product
Federal and State Cigar, Cigarette and Tobacco Bond
Category
License & Permit Surety Bonds
Required amount
Federal and state tobacco tax authorities set separate bond amounts. The amount can depend on monthly tax liability, the volume of business, or a fixed schedule, and some states require a minimum bond amount. Confirm the required amount and obligee with the IRS, the Alcohol and Tobacco Tax and Trade Bureau, and the state tax agency.
Online issue
Instant issue up to $10,000. With acceptable credit, instant issue is available above $10,000 up to $50,000. Larger or specialized tobacco bonds may require underwriting review and additional financial information.
Term
Tobacco bonds are usually written for a one-year term and renewed with the license or permit. Some authorities require a bond that runs for the full license period or a continuous term until the license is cancelled. Follow the tax authority’s instructions.

Who needs a federal and State Cigar, Cigarette and Tobacco Bond?

  • Cigarette, cigar, and other tobacco product distributors or wholesalers required to file a federal or state excise tax bond.
  • Businesses applying for a state tobacco tax license or permit that requires a surety bond.
  • Manufacturers, importers, or warehouse operators whose tobacco tax liability requires a bond.

Why is a federal and State Cigar, Cigarette and Tobacco Bond required?

Tobacco excise taxes are collected at the federal and state level, and the bond protects the taxing authority if the business fails to pay taxes or comply with the applicable tobacco tax law. The bond amount can be tied to the business’s tax liability, inventory, or a fixed schedule.

Federal and state requirements are separate. A federal bond does not automatically satisfy a state bond requirement, and a state bond does not satisfy the federal requirement. Confirm each obligee and bond form with the applicable tax authority.

How much bond do I need?

Federal and state tobacco tax authorities set separate bond amounts. The amount can depend on monthly tax liability, the volume of business, or a fixed schedule, and some states require a minimum bond amount. Confirm the required amount and obligee with the IRS, the Alcohol and Tobacco Tax and Trade Bureau, and the state tax agency.

Instant issue up to $10,000. With acceptable credit, instant issue is available above $10,000 up to $50,000. Larger or specialized tobacco bonds may require underwriting review and additional financial information.

Bond amount is not the premium. The required amount is the maximum the surety could pay under the bond. The premium you pay is a separate charge based on the bond amount, the risk, the term, and your credit. The online application shows the premium before you bind coverage.

How much does a federal and State Cigar, Cigarette and Tobacco Bond cost?

Premium depends on the bond amount, the taxing authority, the term, and the applicant’s credit and financial condition. Tobacco bonds can be more involved than standard license bonds. Apply online for the current premium and underwriting requirements.

How to apply online

  1. Confirm the bond amount and obligee. Use the amount and legal name of the agency, court, client, or government entity that requires the bond. The obligee name must match the requiring party’s records.
  2. Gather the application information. Have the legal business or entity name, address, license or case number, ownership information, and the required bond amount ready.
  3. Start the CNA Surety application. Use the online application link on this page. The link includes the M. BURR KEIM AGENCY app code and agency code, so the application is routed to our agency.
  4. Pay the premium and bind coverage. If the bond is eligible for instant issue, the application will show the premium and let you complete the purchase online. Otherwise, the surety will review the application and contact you if additional information is needed.
  5. File the bond. Provide the issued bond to the agency, court, client, or government entity that requires it, and keep a copy for your records.
Apply for This Bond Online All Bonds

Federal and State Cigar, Cigarette and Tobacco Bond term and renewal

Tobacco bonds are usually written for a one-year term and renewed with the license or permit. Some authorities require a bond that runs for the full license period or a continuous term until the license is cancelled. Follow the tax authority’s instructions.

Good to know

  • Federal tobacco tax bonds and state tobacco tax bonds may use different forms and obligees. Do not assume that one bond satisfies both requirements.
  • Have your tax account numbers, license or permit numbers, and the required bond amount ready before applying.

Federal and State Cigar, Cigarette and Tobacco Bond questions

A federal or state tobacco bond is a surety bond required for certain manufacturers, distributors, wholesalers, and retailers that handle cigarettes, cigars, or other tobacco products. It protects the government against unpaid excise taxes and other covered obligations.

Cigarette, cigar, and other tobacco product distributors or wholesalers required to file a federal or state excise tax bond. Businesses applying for a state tobacco tax license or permit that requires a surety bond. Manufacturers, importers, or warehouse operators whose tobacco tax liability requires a bond.

Premium depends on the bond amount, the taxing authority, the term, and the applicant’s credit and financial condition. Tobacco bonds can be more involved than standard license bonds. Apply online for the current premium and underwriting requirements.

Federal and state tobacco tax authorities set separate bond amounts. The amount can depend on monthly tax liability, the volume of business, or a fixed schedule, and some states require a minimum bond amount. Confirm the required amount and obligee with the IRS, the Alcohol and Tobacco Tax and Trade Bureau, and the state tax agency. Instant issue up to $10,000. With acceptable credit, instant issue is available above $10,000 up to $50,000. Larger or specialized tobacco bonds may require underwriting review and additional financial information.

Apply online through CNA Surety using the application link on this page. The link includes the M. BURR KEIM AGENCY app code and agency code, so the application is routed to our agency. Complete the application, pay the premium online if the bond is eligible for instant issue, and then file the bond with the agency, court, or client that requires it.

No. The license or permit is the government’s authorization to conduct the tobacco business. The bond is a separate financial guarantee required as part of the licensing or tax registration process. Many federal and state tobacco licenses require both.

Usually not. Federal and state tobacco bond requirements are separate, with different obligees and sometimes different bond forms. Confirm both requirements with the applicable tax authorities before applying.

Online application and important note

Bond requirements, forms, amounts, and fees are set by the requiring agency, court, or carrier and can change. This page is general information, not legal advice. Confirm the current requirement with the agency, court, client, or your attorney before applying. M. BURR KEIM AGENCY is an insurance and surety bond agency; the bond or policy is issued by the carrier named on the document.