The price of a pack of cigarettes in France is rising steadily. But who sets the price of tobacco? What are the taxes that explain this increase? How much does a pack of 20 cigarettes cost? What further price increases are to be expected? Focus on the evolution of the selling prices of tobacco products in France.
How is the price of tobacco set in France?
Tobacco manufacturer’s selling price
Tobacco manufacturers or importers offer a retail price for their products. This price includes the cost of production, trade margins and mandatory taxes. It is subject to approval by the French authorities, in particular the Directorate General of Customs and Indirect Taxes, which verifies its compliance.
Tobacconist’s margins
The price of a pack of cigarettes has three main components. Among these is the tobacconist’s margin, between 8 and 10% of the total cost. In addition, the manufacturer’s margin is around 15%. The rest of the total cost is mainly taxes, which make up the vast majority of the final price.
State Taxes
As for state taxes in France, they represent 75 to 80% of cigarette sales (about 40% for cigars). The tobacconist is subject to taxation that varies according to the retail price. It includes two taxes:
Excise duty on tobacco.
Value added tax (VAT).
These taxes are determined by the government as part of budget laws and are often increased to discourage tobacco use.
VAT (Value Added Tax)
Sales by tobacconists, as well as discounts granted, are not subject to VAT. The VAT rate, integrated into the retail selling price, is 16.66%. In addition, each manager in mainland France benefits from a 10.19% discount on the retail sale of all types of tobacco. In Corsica, this discount is 11.323%.
What is the excise duty on tobacco?
Excise Formula
The excise duty on tobacco in France is levied directly on the quantities produced or imported and not on the basis of the value added to a product when it is sold. The amount of the excise duty is equal to the greater of the following two amounts published by the French customs:
The sum of the product of the excise duty rate expressed as a percentage of the retail selling price, added to the excise duty rate expressed in euros per 1 000 units or 1 000 grams.
The minimum collection (minimum tax).
If the sum of the excise duty rate and the tariff is less than the minimum collection, then the latter applies.
Amounts of excise duty on manufactured tobacco in force
Here is the amount of excise duty on tobacco manufactured in metropolitan France since 1 January 2025:
Single price of tobacco throughout the country
Once set, the price of tobacco is uniform throughout mainland France. Retailers cannot offer different prices based on their location or apply specific discounts or promotions on tobacco. Any infringement may result in sanctions against the tobacconist.
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What is the average price of a pack of 20 cigarettes in France?
A general increase on 1 January 2026
On January 1, 2026, an increase in the price of cigarettes comes into force. This varies depending on the manufacturer, but can reach up to one euro on the price of a classic pack of 20 cigarettes, with an average of around +50 cents. This increase has led to many brands crossing the symbolic threshold of 12.50 euros.
An average price of around 13 euros in 2026
Under the cumulative effect of the 2025 increases and the general increase applied at the beginning of 2026, the average price of a pack of 20 cigarettes is now around 12.50-13 euros in France, although differences remain depending on the brand and range. This development is part of the public health strategy to reduce tobacco consumption.
Successive increases in 2025
