Germany plans to raise the tobacco tax (Tabaksteuer) every year from 2027 to 2030. The increases could add up to €3.59 billion a year in extra revenue by 2030.
Cigarette Tax Rises Every Year From 2027 to 2030
The bill (Drucksache 21/7859) covers cigarettes and a range of other tobacco and vaping products. It raises the tax in four annual steps, one each year from 2027 through 2030.
For cigarettes, the minimum tax per stick rises each year.
| Year | Minimum tax per cigarette | Minimum tax per pack of 20 |
|---|---|---|
| 2027 | 27.64 cents | €5.53 |
| 2028 | 30.13 cents | €6.03 |
| 2029 | 32.84 cents | €6.57 |
| 2030 | 35.80 cents | €7.16 |
The bill raises tax rates on other tobacco products too.
- Rolling tobacco (Feinschnitt): minimum tax per kilogram rises from €155.74 in 2027 to €269.12 in 2030
- Cigars, cigarillos and pipe tobacco: increases on a comparable four-step schedule
- Heated tobacco: stays taxed at 80% of the cigarette rate
- Water pipe tobacco: keeps a separate surcharge of €23 per kilogram
- Vaping liquids and shisha tobacco also fall under the bill
Retailers usually pass tax increases straight to shoppers. Expect shelf prices to rise every January from 2027 onward.
Why is the government raising tobacco tax?
The Federal Ministry of Finance cites two goals.
- shoring up the federal budget
- improving public health
The higher tax should also help cut smoking among young people and adults.
The extra revenue is not earmarked for health spending. It flows into the general federal budget instead.
The timing is no accident. The EU is also negotiating higher minimum tobacco tax rates.
Kiosk and Tobacco Shop Owners Get a Shorter Tax Stamp Ordering Window
Kiosk and tobacco shop owners face one operational change under the bill. Tax stamp (Steuerzeichen) ordering windows shrink from two months to six weeks starting in 2027.
Kiosk and tobacco shop owners should build the shorter window into their 2027 stock planning.
NOTE: This is still a bill, not law. The Bundestag received it on September 7, 2026, after cabinet approval on April 29, 2026. It still must pass the Bundestag and possibly the Bundesrat before taking effect January 1, 2027.
