Taxes on Tobacco Products and Cigarettes (Tabaksteuer) in Germany
(Taxation of Cigarettes, Tobacco and Related Products)

What is “Tabaksteuer”?

Tabaksteuer is a consumption tax (Verbrauchsteuer) levied on all tobacco products in Germany, such as:

• Cigarettes (Zigaretten)

• Fine-cut rolling tobacco (Feinschnitt)

• Cigars and cigarillos (Zigarren)

• Heated tobacco (Heiztabak)

• Nicotine-containing electronic liquids (E-cigarette liquids – from 2022 onwards)

Who pays the tax?

• Manufacturers and importers pay the tax to the state.

• However, the tax is passed on to consumers via the final retail price.

→ This means that the price you pay in the shop already includes the Tabaksteuer plus 19% VAT (Umsatzsteuer).

How is tobacco tax calculated?

1. Cigarettes (Zigaretten)

The tax on cigarettes is calculated as a combination of a fixed amount and a percentage of the retail price:

Component – Value (approx. 2024–2025)

• Fixed amount per cigarette:
  9.82 cents per cigarette
  (equivalent to 1.964 € per pack of 20)

• + Percentage of retail price:
  21.69% of the retail price

• Minimum tax:
  12.46 cents per cigarette

The goal is to ensure that the tax burden does not fall below a certain minimum level, even for cheaper brands and low-priced packs.

2. Fine-cut tobacco (Feinschnitt / rolling tobacco)

Component – Value

• Fixed amount:
  15.66 € per kilogram

• + Percentage of retail price:
  15.7% of the retail price

• Minimum tax:
  Calculated equivalent to 1,000 cigarettes.

3. Cigars / cigarillos (Zigarren)

For cigars and cigarillos, the tax is:

• Tax:
  1.4 cents per piece
  + 1.47% of the retail price.

4. Heated tobacco (Heiztabak)

Since 2022, heated tobacco has been integrated into a step-wise tax system similar to that for cigarettes, with annual tax increases planned until 2026.

5. Electronic cigarette liquids (E-cigarette liquids)

Since 2022, a separate tax applies to nicotine-containing liquids used in e-cigarettes:

Year – Tax per 10 ml – Notes

• 2022:
  0.16 € per 10 ml

• 2024:
  0.20 € per 10 ml
  (the tax will gradually increase until 2026)

• 2026:
  0.32 € per 10 ml
  (the highest rate currently planned)

Where do these taxes show up?

The final price in the shop already includes:

• Tabaksteuer (tobacco tax)

• Umsatzsteuer (19% VAT / sales tax)

→ You do not pay them separately, but they directly affect the price of the product.

Useful terms

• Tabaksteuer – Tobacco tax

• Zigaretten – Cigarettes

• Feinschnitt – Fine-cut rolling tobacco

• Zigarren – Cigars / cigarillos

• Heiztabak – Heated tobacco (alternative to conventional cigarettes)

• E-Zigaretten – Electronic cigarettes

• Verbrauchsteuer – Consumption tax / excise duty

Summary

• All tobacco products in Germany are subject to a specific tobacco tax that is added to the final retail price.

• Cigarettes: taxed through a fixed amount per unit plus a percentage of the retail price, with a minimum tax.

• Fine-cut tobacco and cigars have their own specific tax structures with fixed and percentage components.

• Nicotine-containing e-liquids have been subject to a rising tax rate since 2022, with increases planned up to 2026.

• The price you see on the shelf already includes all taxes (Tabaksteuer + 19% VAT).

The editorial team of the website makes every effort to provide accurate information by conducting thorough research and consulting multiple sources.
Nevertheless, errors may occur, or some information may be incomplete or not fully up to date.
Therefore, the information in this article should be regarded as an initial reference only. For binding and definitive information, you should always contact the competent authorities or a qualified tax advisor.