New tax rates for tobacco products will come into effect in Germany on January 1, 2026. This applies in particular to cigarettes, water pipe tobacco, and tobacco substitutes, which will be subject to higher taxes in the future. The tariff codes and tax codes to be used on packaging will also change accordingly.
Cigars, cigarillos, and pipe tobacco are exempt from the changes, and their tax rates and tax codes will remain unchanged.
Affected companies should start preparing for the new tax codes and tax rates now. New tax codes can be applied for from the beginning of November 2025 and must be available at least eight weeks before the required date.
The tax adjustments are part of the Tobacco Tax Modernization Act, which combines health policy goals with fiscal interests. Consumers of water pipe tobacco and substitutes, such as liquids for e-cigarettes, must be prepared for significant price increases in particular.
The tobacco tax modernization was introduced gradually to make the tax increases more predictable for consumers and businesses and to prevent negative consequences, such as sudden market distortions or a shift to illegal products.
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Ab dem 1. Januar 2026 neue Steuertarife
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