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Cigarette Prices in Mexico Jump 20% in January as 2026 IEPS Hike Hits Stores

A phased per‑cigarette quota through 2030 will continue pushing costs higher.

Overview

  • Distributors have issued new price lists to shops, with Marlboro packs marked at 105–106 pesos and some variants reaching 108 pesos.
  • Congress raised the ad valorem IEPS on manufactured tobacco from 160% to 200% and set a 2026 specific quota of 0.8516 pesos per cigarette.
  • Retailers report typical increases of roughly 20–22%, with common moves from about 87 pesos to around 100–106 pesos, and some stores already charging the higher prices.
  • The Finance Ministry outlined a schedule that lifts the per‑unit quota to 0.9197 pesos in 2027, 0.9932 in 2028, 1.0726 in 2029, and 1.1584 in 2030.
  • CIEP modeling estimates a 7.3% decline in pack sales and a 17.4% rise in average pack price in 2026, with taxes comprising about 73% of the final price.