January 2026: Tobacco Prices Increase Across Europe in 2026
In 2026, most European countries increase taxes on tobacco and an expanding range of nicotine products as part of public health strategies aimed at reducing use, preventing youth initiation, and addressing health inequalities. Nations including the UK, Germany, Austria, France, Italy and Ireland are implementing progressive excise duty increases on cigarettes, heated tobacco sticks, vaping liquids, and nicotine pouches, often through multi-year plans that raise retail prices compared with 2025 levels. At the EU level, a proposed revision of the 2011 Tobacco Taxation Directive seeks to harmonize minimum tax rates across member states, extend the scope to new nicotine products, and strengthen efforts to reduce smoking prevalence, although this has drawn opposition from some member states concerned about economic impacts.
| Country/Retail Price | Cigarettes (Marlboro) | Nicotine Pouches (ZYN/VELO) | Heated Tobacco (TEREA) |
|---|---|---|---|
| Germany | € 8.5-8.8 | € 6.0 – 6.5 | € 7.0 – 7.5 |
| Austria | € 6.5-6.9 | € 5.5 – 6.0 | € 6.5 – 7.0 |
| Finland | € 11.5 | € 7.0 – 7.5 | € 8.0 – 8.5 |
| France | € 13.0 – 13.5 | € 6.5 – 7.0 | € 8.5 – 9.0 |
| Irland | € 18.0 – 19.0 | € 8.0 – 9.0 | € 10.0 – 11.0 |
| Italy | € 6.8 | € 5.0 | € 5.5 |
| United Kingdom | £ 18.0 – 20.0 | £ 7.0 – 8.0 | £ 9.0 – 10.0 |
| Switzerland | CHF 9.0 | CHF 3.9 – 9.9 | CHF 8.5 |
Germany:
Germany is implementing a gradual increase in taxes on tobacco and nicotine products through 2026 under its tobacco tax modernization reform. The objective is to harmonize taxation across all nicotine-containing products, reduce disparities between product categories, and support public health goals. Excise duties on cigarettes continue to rise in staged increments of approximately €0.10 to €0.15 per pack per year, resulting in a steady and predictable increase in retail prices. Heated tobacco products are now subject to significantly higher taxation than in the past, with a clear policy of convergence toward the tax burden applied to conventional cigarettes. By 2026, this substantially reduces the price advantage previously enjoyed by heated tobacco sticks. Germany was also among the first European countries to introduce a specific excise duty on e-cigarette liquids, regardless of nicotine content. This levy increases from €0.26 per millilitre in 2025 to €0.32 per millilitre in 2026. Overall, Germany’s approach reflects a coherent strategy that treats all nicotine products consistently, using taxation as a central lever to reduce affordability—particularly for young people—while providing a stable and foreseeable fiscal framework.
Austria:
Austria is embarking on a progressive increase in tobacco and nicotine taxation from 2026 through 2028. Excise duties on cigarettes rise at the beginning of 2026, with average pack prices expected to move from around €6.20–€6.50 in 2025 toward €7 in 2026, reaching €7.50–€8 by 2028 depending on the brand. At the same time, Austria is extending taxation to new nicotine products. From spring 2026, nicotine pouches and e-liquids will be taxed for the first time, while heated tobacco products will be subject to staged increases aligned with those applied to cigarettes. This reform signals a clear move toward broader fiscal coverage of all nicotine-containing products.
France:
In France, tobacco taxation remains a cornerstone of public health policy, a stance reaffirmed at the start of 2026. Cigarette prices increased on January 1, 2026, due to higher excise duties combined with automatic inflation indexation. Depending on the brand, prices rose by €0.40 to €0.50 per pack, pushing discount brands to around €11.50, most mainstream brands above €12.50, and some up to €13.50. The introduction of a minimum price close to €13 per pack is under consideration for 2027. These increases are part of a long-term trajectory defined by national tobacco control plans aimed at steadily reducing consumption by making tobacco progressively less affordable, particularly for younger consumers. The authorities have repeatedly stated their intention to maintain strong fiscal pressure beyond 2026.
The approach to alternative nicotine products is more cautious. Although a tax on e-cigarette liquids was discussed during preparation of the 2026 Finance Act, it was ultimately excluded from the adopted legislation. As a result, e-liquids remain untaxed in 2026, though the issue is likely to resurface in future budget debates. France is therefore pursuing a clear strategy of sustained increases in tobacco taxation, while moving more gradually on other nicotine products. This determination is further illustrated by the removal of long-standing tax exemptions in Corsica, which had reduced tobacco prices on the island by roughly 25% under a Napoleonic-era regime dating back to 1811. Ending this exemption aligns prices in Corsica with those on the mainland and underscores the authorities’ intent to eliminate territorial price disparities.
Italy:
Italy is raising excise duties on tobacco and nicotine products from the beginning of 2026 under a multi-year fiscal strategy covering 2026–2028. For cigarettes, the 2026 increase translates into an average price rise of about €0.15 per pack compared with 2025. Further increases are already scheduled, estimated at around €0.25 in 2027 and €0.40 in 2028, ensuring a continuous upward trajectory. Roll-your-own tobacco is more heavily affected, with the price of a standard 30-gram pouch increasing by €0.50 in 2026, reflecting a policy aim to narrow price gaps between consumption formats. Heated tobacco products and electronic cigarettes are also subject to higher excise duties, although the resulting price increases remain modest. Overall, the reform confirms a gradual alignment of taxation across all nicotine products. In practice, packs priced at around €5.30–€5.50 in 2025 rise to €5.45–€5.65 in 2026, €5.70–€5.90 in 2027, and €6.10–€6.30 by 2028. These predictable increases serve both budgetary and public health objectives.
Ireland:
Ireland continues to pursue one of Europe’s most stringent tobacco taxation policies, characterized by regular, substantial, and predictable increases. This long-standing strategy has placed Ireland among the countries with the highest tobacco prices, explicitly aimed at reducing consumption and preventing initiation, especially among young people. In October 2025, excise duties on cigarettes and roll-your-own tobacco were increased again, pushing the price of a pack well beyond €15, with some brands reaching nearly €19. Despite recurring concerns about illicit and cross-border trade, the government has maintained strong fiscal pressure in line with its objective of becoming a “smoke-free” country by 2035.
While Ireland does not yet apply a specific excise duty on e-liquids comparable to that introduced in the United Kingdom, discussions are ongoing amid growing concerns about youth vaping. Extending taxation to vaping products remains a credible option in the coming years. Overall, Ireland’s approach reflects a coherent, long-term strategy in which taxation is viewed as a structural deterrent rather than a one-off measure, with further increases likely beyond 2026.
Finland:
Finland significantly increases taxes on tobacco and nicotine products from 2026 onward. Taxation on nicotine pouches rises by approximately 37%, pushing the price of a standard can from around €5 to nearly €7. At the same time, the average price of a pack of cigarettes stands at roughly €11.50, with more than 90% of the retail price accounted for by taxes. These measures form part of a clearly defined fiscal path, with further semi-annual increases planned through mid-2027. The policy is explicitly driven by public health objectives, aiming to reduce affordability and curb consumption, particularly among young people.
United Kingdom:
The United Kingdom continues its long-standing policy of using tobacco taxation as a central public health tool. Excise duties on cigarettes and roll-your-own tobacco are increased annually through an “escalator” that combines inflation with an additional consumption-reducing component. At the start of 2026, duties rise again, reinforcing price levels already among the highest in Europe. The minimum excise rate has increased by more than 9.8% in less than a year, a change directly reflected in retail prices. In 2025, the average price of a pack of 20 cigarettes was estimated at £16–£18; following recent increases, it now stands at around £17.80.
Further increases are scheduled for October 2026, combining inflation indexation (RPI + 2%) with an additional £2.20 per 100 cigarettes. This could push pack prices beyond £20 for leading brands. These measures align with the government’s stated objective of creating a “smoke-free generation” by 2030. In parallel, the UK is introducing a significant reform in nicotine taxation: from October 1, 2026, a flat-rate duty of £2.20 per 10 ml will apply to all e-cigarette liquids, including non-nicotine and CBD products. Including VAT, this represents a £2.64 increase per 10 ml bottle. The measure is expected to affect around 5.1 million vapers, generate £135 million in 2026–2027, and up to £565 million annually by 2030–2031. A mandatory duty stamp will follow from April 2027 to strengthen traceability and combat illicit trade.
Croatia:
Croatia implemented substantial increases in tobacco and nicotine taxation from January 1, 2026. The specific excise on cigarettes was raised to €59.10 per 1,000 cigarettes, the ad valorem rate to 34% of the retail price, and the minimum excise level to €130.60 per 1,000 cigarettes—an increase of nearly 7%. These changes resulted in average retail price increases of around €0.20 per pack, or 4–6% depending on the brand. Despite the rise, prices remain relatively low by Western European standards, at around €5.00–€5.50 per pack. The reform also extends to other products: roll-your-own tobacco is taxed at €126.90 per kilogram, heated tobacco at €211.30 per kilogram, and e-liquids are now subject to a new excise duty of €0.25 per millilitre. The government expects these measures to generate more than €120 million in additional revenue in 2026, while gradually aligning Croatia with broader European taxation trends.
Montenegro:
Montenegro is pursuing a clearly defined strategy of progressive tobacco tax increases. From January 19, 2026, retail cigarette prices rose by €0.20 to €0.50 per pack following a new excise duty increase. Prices now range from around €4 to €6 depending on brand and format, with entry-level brands typically priced between €3 and €3.80. Authorities estimate an average increase of approximately €0.20 per pack, or about 7.7%. This measure is part of a long-term plan involving five additional increases every six months through the end of 2028, with the goal of pushing the minimum legal price of a pack above €4. The strategy combines revenue objectives with public health considerations, relying on regular and predictable price increases.
