New tobacco tax rates for 2027–2031 enter into force

The Act Amending the Tabaksteuergesetz of 19 October 2026 (Bundesgesetzblatt Teil I Nr. 309, issued 20 October 2026) replaces § 2 Absatz 1 with a new stepped tariffBund running from 1 January 2027 to 14 February 2031Bund and rewrites the stamp-ordering transition. The Act enters into force the day after promulgation.Bund

Cigarettes move to 18.57 cent per stick plus 21.05 percent of the retail price as the baselineBund, with stepped rates of 14.34 cent in 2027Bund, 15.63 cent in 2028Bund, 17.04 cent in 2029Bund and 18.57 cent from 2030 to 14 February 2031Bund, each plus 21.05 percent of the retail priceBund and subject to a minimum net of retail-price VAT of 29.492 cent in 2027Bund, 32.146 cent in 2028Bund, 35.042 cent in 2029Bund and 38.192 cent in 2030/31Bund. Cigars and cigarillos move to a baseline of 2.85 cent per stick plus 3.83 percentBund, with a reduced opening step of 1.4 cent plus 1.47 percent for January and February 2027Bund, then 2.14 cent for the rest of 2027Bund, 2.35 cent in 2028Bund and 2.59 cent in 2029Bund, each plus 3.83 percentBund and subject to rising minimum amounts. Fine-cut rises to a baseline of 121.71 Euro per kilogram plus 17.97 percentBund, stepped from 75.80 Euro in 2027Bund through 88.76 Euro in 2028Bund and 103.94 Euro in 2029Bund, with minimum amounts net of VAT from 155.34 Euro to 249.43 Euro per kilogramBund.

Pipe tobacco moves to 41.23 Euro per kilogram plus 14.83 percent as the baselineBundBund with a minimum of 71.50 EuroBund, opening at 15.66 Euro plus 13.13 percent in January and February 2027Bund and stepping through 21.11 Euro for the rest of 2027Bund, 26.39 Euro in 2028Bund and 32.99 Euro in 2029Bund. Heated tobacco is taxed at the pipe-tobacco rate plus a surcharge of 80 percent of the cigarette amount minus the pipe-tobacco amountBund, with each individually portioned smoking unit counting as one cigaretteBund; water-pipe tobacco carries the pipe-tobacco rate plus 23 Euro per kilogramBund. Substitutes for tobacco products are taxed per millilitre at 0.38 Euro in 2027Bund, 0.40 Euro in 2028Bund, 0.42 Euro in 2029Bund and 0.44 Euro from 2030Bund.

For logistics, new § 38 Absatz 3a TabStG lets stamps for cigarettes, fine-cut, heated tobacco and substitutes in the post-change tariff version be obtained five weeks before a tariff change takes effectBund, deviating until 31 December 2026 from the regular two-month ruleBund; tax paid with such new stamps arises at the post-change rateBund. Mirror transitional rules in § 61 Tabaksteuerverordnung require stamps for those products to be ordered at least five weeks before need when tariffs or comprehensive retail prices changeBund, and allow the notification under § 32 Absatz 3 Satz 2 to be given with the order at the latest — both until 31 December 2026Bund.

Legal basis: Artikel 1 (new §§ 2 and 38 Tabaksteuergesetz) and Artikel 2 (new § 61 Tabaksteuerverordnung) of the Gesetz zur Änderung des Tabaksteuergesetzes vom 19. Oktober 2026 (BGBl I Nr. 309)Bund.