AbstractLimited attention has been paid to how previous policies affect subsequent policy innovation. This article addresses this question by examining whether U.S. states with higher cigarette taxes are more likely to adopt e‐cigarette taxes and impose higher rates. The concept of policy compatibility, divided into normative and operational compatibility, is used to connect these policies. First, states with higher cigarette taxes are hypothesized to be more likely to adopt e‐cigarette taxes. This is because high cigarette tax rates indicate a preference for strong tobacco regulation, which is normatively compatible with regulating e‐cigarettes. States with high cigarette tax rates are also expected to choose high e‐cigarette tax rates. Such states, even if imposing higher e‐cigarette taxes, can maintain a similar or even larger price gap between cigarettes and e‐cigarettes, compared to those with low cigarette taxes. By doing so, they can not only reduce vaping effectively but also continuously provide smokers with a strong economic incentive to switch to e‐cigarettes. This indicates that such policies are operationally compatible with existing cigarette tax goals—reducing smoking and nicotine‐related health risks. The empirical findings support both hypotheses, offering insight into how past policies shape policy adoption.