This is a translation of the Japanese original. The Japanese version is authoritative; figures follow Japanese tax law.
Tobacco goes up again on October 1, 2026. This time only heated tobacco is affected: all 31 Ploom variants rise by 40 yen, TEREA for IQOS by 20 yen, and neo for glo by 40 yen. The reason is less a tax increase than a redesign of how the tax is calculated — the second of two steps that put one heated-tobacco stick on the same tax footing as one cigarette. The real tax increase, the one that hits cigarettes and heated tobacco alike, starts in April 2027: to fund defence spending, the national tobacco tax rises by 0.5 yen per stick each year for three years running, through April 2029. Using National Tax Agency, Ministry of Finance and manufacturer announcements, this article sets out the new price for each brand, how much a pack-a-day habit costs over a year, and whether it is worth stocking up during September.
The short answer: October 2026 hits heated tobacco only; from April 2027 everything goes up
| When | What changes | Who it hits | Guide per pack |
|---|---|---|---|
| April 1, 2026 (done) | Heated tobacco taxation redesign, step 1 | People who smoke heated tobacco | TEREA 580 yen to 620 yen, EVO 550 yen to 580 yen, and so on |
| October 1, 2026 | Taxation redesign, step 2 (one stick taxed as one cigarette) | Only people who smoke heated tobacco. Cigarettes are not affected | Ploom +40 yen / TEREA +20 yen / neo +40 yen |
| April 1, 2027 | National tobacco tax up by 0.5 yen per stick (defence funding, first of three) | All cigarettes and heated tobacco | +10 yen in tax (+11 yen with consumption tax). Retail prices await each maker's application |
| April 1, 2028 | Same, second of three (0.5 yen per stick) | As above | +10 yen in tax |
| April 1, 2029 | Same, third of three (0.5 yen per stick). Cumulative 1.5 yen per stick | As above | +10 yen in tax (+30 yen over three years) |
The Ministry of Finance explains that "in order to resolve the gap in tax burden between heated tobacco and cigarettes, the taxation method for heated tobacco will be rationalised in two steps, in April 2026 and October 2026", and that on top of that "the national tobacco tax rate will be raised by 1.5 yen per stick, in three steps of 0.5 yen per stick in April 2027, April 2028 and April 2029"[Ministry of Finance]. In short, if you smoke cigarettes, October is not your problem; April 2027 is. If you smoke heated tobacco, you pay more in October and then more again every year from 2027.
New prices by brand on October 1, 2026: Ploom +40 yen, TEREA +20 yen, neo +40 yen
All three makers have obtained the Finance Minister's approval and will revise their retail prices as of October 1. None of them has included cigarettes this time.
| Maker and device | Brand | To September 30 | From October 1 | Increase |
|---|---|---|---|---|
| Japan Tobacco (Ploom) All 31 variants, 40 yen across the board | EVO (11 variants) | 580 yen | 620 yen | +40 yen |
| MEVIUS (13 variants) | 550 yen | 590 yen | +40 yen | |
| CAMEL (7 variants) | 530 yen | 570 yen | +40 yen | |
| Philip Morris (IQOS) 54 heated tobacco variants | TEREA | 620 yen | 640 yen | +20 yen |
| SENTIA | 570 yen | 590 yen | +20 yen | |
| MIIX | 560 yen | 590 yen | +30 yen | |
| British American Tobacco (glo) 33 dedicated stick variants | neo | 530 yen | 570 yen | +40 yen |
| KENT | 520 yen | 550 yen | +30 yen | |
| LUCKY STRIKE | 480 yen | 500 yen | +20 yen |
On July 15, Japan Tobacco applied for approval to raise all 31 Ploom stick variants by 40 yen each "in line with the revision of the taxation method for heated tobacco", and approval followed in August[Japan Tobacco]. Philip Morris Japan announced approval for 54 variants on August 26[press report], and BAT Japan announced approval for 33 glo sticks on August 18[press report]. The increases range from 20 to 40 yen because each maker raised a different amount at step 1 in April, and because the starting tax amount differed from brand to brand.
Philip Morris raised TEREA from 580 yen to 620 yen and SENTIA from 530 yen to 570 yen on April 1[Philip Morris], and TEREA reaches 640 yen in October: 60 yen in six months. Ploom's EVO goes from 550 yen up to March to 620 yen, 70 yen in six months.
Why only heated tobacco: one stick is taxed as one cigarette
Tobacco tax is set as an amount "per 1,000 cigarettes". Heated tobacco is converted into that number of sticks and taxed accordingly, but the old conversion combined weight and price, which left a pack of 20 taxed more lightly than 20 cigarettes. The FY2025 tax reform revised the conversion so that it is based on weight alone. For stick types, the weight of the tobacco leaf and other contents divided by 0.35 grams gives the number of cigarettes; for non-stick types (capsules and pods), the weight is divided by 0.2 grams. Light products are subject to a floor: a stick weighing less than 0.35 grams counts as one cigarette, and a non-stick pack weighing less than 4 grams counts as 20 cigarettes[National Tax Agency][Ministry of Finance].
The switch comes in two steps, and the schedule is the same for both types. From April 1, 2026, the count is half the old method plus half the new method (step 1); from October 1, 2026, only the new method applies (step 2). From October, a pack of 20 sticks each weighing less than 0.35 grams carries the same tax as 20 cigarettes. The current tax amounts are as follows, which works out at about 305 yen of tax on a pack of 20[Tokyo Metropolitan Bureau of Taxation].
| Type of tax | Per 1,000 sticks | Per pack of 20 |
|---|---|---|
| National tobacco tax | 6,802 yen | 136.04 yen |
| Special tobacco tax (national) | 820 yen | 16.40 yen |
| Prefectural tobacco tax | 1,070 yen | 21.40 yen |
| Municipal tobacco tax | 6,552 yen | 131.04 yen |
| Total | 15,244 yen | 304.88 yen |
On a 580 yen pack of cigarettes, roughly 53 yen of consumption tax sits on top of about 305 yen of tobacco tax, so more than 60 percent of the price is tax. Heated tobacco is part-way through catching up, and October is the last step of that climb.
The defence tax increase from April 2027: 1.5 yen per stick over three years, 30 yen a pack
The funding for higher defence spending rests on three taxes: corporate tax, income tax and tobacco tax. For tobacco, only the national tobacco tax portion rises, by 0.5 yen per stick in each of April 2027, April 2028 and April 2029[Ministry of Finance, materials on tobacco tax]. For a pack of 20 that is 10 yen each time, 30 yen more in tax over three years.
| Period | National tobacco tax (per 1,000) | Total tax (per 1,000) | Tax on a pack of 20 |
|---|---|---|---|
| Now (as of October 2026) | 6,802 yen | 15,244 yen | 304.88 yen |
| From April 1, 2027 | 7,302 yen | 15,744 yen | 314.88 yen (+10 yen) |
| From April 1, 2028 | 7,802 yen | 16,244 yen | 324.88 yen (+20 yen) |
| From April 1, 2029 | 8,302 yen | 16,744 yen | 334.88 yen (+30 yen) |
One thing to watch here: a 10 yen rise in tax and a 10 yen rise at the till are two different things. Retail prices are set by each maker applying to the Finance Minister for approval. At the past increases (1 yen per stick in October 2018, October 2020 and October 2021), a 20 yen rise in tax translated into around 50 yen a pack on the major brands. The size of the April 2027 increase is expected to be announced by each maker during 2027, and this article will be updated once it is confirmed.
The three-year rise in tobacco tax is the same amount per stick regardless of income. Of the three pillars of defence funding, income tax and corporate tax vary with income, but tobacco tax alone is designed so that the lower your income, the heavier the burden relative to it. What the defence funding package contains overall, and how it affects take-home pay, is set out in how the defence tax increase works and what it does to take-home pay.
How much more a pack a day costs over a year: 14,600 yen from the October rise alone
Ploom (EVO, MEVIUS, CAMEL): 40 yen x 365 days = 14,600 yen a year
glo (neo): 40 yen x 365 days = 14,600 yen a year
IQOS (TEREA, SENTIA): 20 yen x 365 days = 7,300 yen a year
Halve that for a pack every two days. For a pack-a-day smoker, the cumulative rise since April (60 yen on TEREA, 70 yen on EVO) works out at 21,900 to 25,550 yen more a year.
| How much you smoke | Packs a year | Brands up 20 yen | Brands up 40 yen | Tax rise from April 2029 (+30 yen) |
|---|---|---|---|---|
| Half a pack a day (10 sticks) | About 183 packs | About 3,700 yen | About 7,300 yen | About 5,500 yen |
| A pack a day (20 sticks) | 365 packs | 7,300 yen | 14,600 yen | 10,950 yen |
| A pack and a half a day (30 sticks) | About 548 packs | About 11,000 yen | About 21,900 yen | About 16,400 yen |
The right-hand column is the increase in tax alone from April 2029; the actual rise in retail prices may well be larger. For a pack-a-day smoker, it is worth bracing for roughly 30,000 yen a year in extra spending once the 2026 to 2029 increases are added together.
Is it worth stocking up during September? 400 yen a carton, and a shelf life of months
Buying a carton (10 packs) of heated tobacco sticks in advance saves 400 yen on Ploom or neo, and 200 yen on TEREA. Tobacco is not a food, so there is no legal best-before labelling, but the makers say the flavour starts to fade within a few months to half a year even unopened. A pack-a-day smoker buying three months' worth (9 cartons) saves 3,600 yen on Ploom. That is not nothing, but between storage space and the loss of flavour, one to two months' worth is the realistic ceiling.
Note that alcohol tax changes on the same October 1, with beer coming down and chu-hi and happoshu going up; that is covered in the tax increase on chu-hi and highballs. For everything that changes in October, see money changes from October 2026.
Frequently asked questions
Do cigarettes go up in October 2026?
The approvals obtained by all three makers cover heated tobacco sticks only; cigarettes are not included. The next increase that covers cigarettes is expected in April 2027, when the national tobacco tax rises by 0.5 yen per stick.
Will heated tobacco stay more lightly taxed than cigarettes?
From October 1, 2026 one stick is taxed as one cigarette, so the tax on a pack of 20 becomes the same roughly 305 yen as for cigarettes. The gap in tax burden that previously favoured heated tobacco disappears with this revision.
How much will prices rise in April 2027?
All that has been decided is the tax: 0.5 yen per stick, or 10 yen a pack. Shop prices are set by each maker with the Finance Minister's approval, so you have to wait for announcements during 2027. At the past increases of 1 yen per stick, the major brands went up by around 50 yen a pack.
Is tobacco tax used only for defence?
The increase from 2027 is designated as funding for strengthening defence capability, but tobacco tax itself is general revenue for national and local government: of the roughly 305 yen on a pack, about 152 yen goes to prefectures and municipalities. Because it accrues to the local government where the tobacco was bought, it also affects the tax revenue of the municipality you live in.
References (sources)
This article is based on the materials below. For retail prices from April 2027 onwards, check each maker's approval announcements.
Note: this article is general information. Prices are the retail prices announced by each maker and may differ depending on what a shop carries and on stock levels.
