Abstract: In order to solve the problem of low utilization rate of nitrogen fertilizers and environmental deterioration caused by irrational application of nitrogen fertilizers, the effects of different nitrogen levels on nitrogen utilization rate and tobacco economic characters were studied using K326 as experimental material. The results showed that proper increase of nitrogen application can increase yield and output value of flue-cured tobacco. The yield of N3 treatment (195 kg/hm²) and the output value of N2 treatment (150 kg/hm²) was the highest. The nitrogen partial factor productivity (NPFP) and nitrogen recovery efficiency (NRE) were reducedwith increased nitrogen application. The nitrogen tobacco productivity efficiency (NTPE), nitrogen physiological efficiency (NPE) and nitrogen agronomy efficiency (NAE) increased first then decreased, reaching the maximum when nitrogen application rate was 150 kg/hm²(N2 treatment). With the Coase Theory of Environmental Economics and the Marginal Revenue Analysis Theory, the ecological and economic satisfactory amount of nitrogen fertilizer usage on Shixing dry land flue-cured tobacco was 115.10~162.13kg/hm², with a yield of 2381.42~2677.72 kg/hm² under the condition of the current agricultural production technology.