Up in Smoke: Cigarette Prices in Austria Jump by 40 Cents as New Tax Hits
The cost of a habit is going up. Starting Monday, January 19, 2026, smokers in Austria will face higher cigarette prices as tobacco companies adjust retail costs in response to a recent government-led tax increase.
The price hikes, amounting to 10 – 40 cents per pack, were announced following the introduction of the 2026 fiscal budget measures.
Major Brands Hike Prices
The first wave of increases is being implemented by Japan Tobacco International (JTI). Major brands including Camel, Benson & Hedges, and Winston will see prices rise by 30–40 cents per pack.
Competitor Philip Morris has also announced adjustments; for example, a standard pack of Marlboro will now cost around €7.00, up about 10 cents. This puts Austria closer to the pricing structures of Western Europe, though still significantly cheaper than neighbors like France or Germany.
Revenue for the State
The Austrian Finance Ministry cites the tax hike as the primary driver. The changes are expected to generate approximately €100 million in additional revenue this year alone.
This follows a strong year for the treasury; in 2025, tobacco tax revenues brought in roughly €2.18 billion. With VAT included, the state earned nearly €2.9 billion from smokers last year.
Expanding the Monopoly
The price hike is just one part of a broader regulatory shift. From April 2026, the tobacco monopoly framework (Tabakmonopol) will expand to include nicotine pouches and e-liquids. These products will soon fall under the same strict retail and tax regime as traditional cigarettes.
Impact on Wallets
The increase comes as Austrian households navigate a mixed economic landscape. While the abolition of cold progression has boosted net incomes, rising costs for daily goods continue to pinch.
However, the hike might offer a small silver lining for health advocates, aligning with the government’s dual goal of boosting finances and discouraging smoking. It remains to be seen if the new €7 barrier will drive more Austrians to quit, or if they will simply absorb the cost much like the recent increases in residence permit financial requirements.
