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Nationally, the rate was 5.7%.2 Economics of tobacco use and tobacco control How much does Kentucky get from tobacco taxes Kentucky received $497.4 million (estimated) in revenue from tobacco settlement payments and taxes in fiscal year 2020.4 Of this, the state allocated $3.3 million in state funds to tobacco prevention in fiscal year 2020, 5.9% 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 cigarette tax Tobacco taxes Kentucky is ranked 36th in the U.S