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Nationally, the rate was 5.7%.2 Economics of tobacco use and tobacco control Kentucky cigarette tax Kentucky received $503.3 million (estimated) in revenue from tobacco settlement payments and taxes in fiscal year 2021.4 Of this, the state allocated $2.0 million in state funds to tobacco prevention in fiscal year 2021, 3.5% of the Centers for Disease Control and Preventions annual spending target.4 Smoking-related health care costs: $1.92 billion per year.4 Smoking-related losses in productivity: $2.79 billion per year.5 Kentucky tobacco laws Kentucky smoking laws Tobacco taxes Kentucky is ranked 37th in the U.S