Liquor is getting more expensive

Government raises tax on “hard” alcohol!

The alcohol tax on whiskey, gin, rum, and other spirits will be increased by 30 percent.(Bild: Krone KREATIV/stock.adobe.com)

Anyone who enjoys a glass of whiskey, gin and tonic, or fine rum will soon have to dig deeper into their pockets. As part of its budget consolidation efforts, the government is planning a hefty tax increase on high-proof alcohol. While the sales tax will remain the same, the special alcohol tax on spirits, liqueurs, and schnapps will rise by a whopping 30 percent.

In total, the coalition of ÖVP, SPÖ, and NEOS must raise over five billion euros in the 2027/28 double budget. The money is to come from austerity measures and additional revenue. One of the most painful measures for connoisseurs and bar-goers: significantly higher taxation on hard liquor.

Here’s how much prices for vodka, gin, and the like will rise
Currently, the alcohol tax on high-proof spirits is 12 euros per liter of pure alcohol. A concrete example: A 0.7-liter bottle of vodka with 40 percent alcohol currently incurs 3.36 euros in tax. With the planned 30 percent increase, this will rise to around 4.37 euros. For consumers, this means the bottle will cost about one euro more.

For a liter of schnapps (40% alcohol by volume), the tax is currently 4.80 euros. After the increase, it will amount to just under 6.30 euros—a surcharge of 1.50 euros.

Even nights out at the bar will become more expensive:

• Gin and tonic (4 cl gin, 37.5%): Currently approx. 18 cents in tax → after the increase approx. 23 cents (plus 5 cents)

• Negroni (3 cl gin, 3 cl Campari, 3 cl vermouth): Currently approx. 26 cents in tax (vermouth taxed at a lower rate as an intermediate product) → approx. 34 cents in the future

Beer and wine are spared—but why?
A sigh of relief for beer drinkers: While beer tax is levied on beer, no alcohol tax in the strict sense is imposed. So, nothing changes tax-wise for beer. Wine also does not fall under the definition of “hard liquor”—wine drinkers will likewise be spared the new tax.

Finance Minister Markus Marterbauer must allocate over five billion euros for the 2027/28 double budget. The increase in the alcohol tax is intended to contribute a small portion of that.(Bild: APA/ROLAND SCHLAGER)

The government hopes the measure will generate additional revenue for its strained coffers, while the increase is also seen as a signal regarding health policy. Whether this will work is questionable: Revenue from the alcohol tax has recently been declining. In January and February 2026 alone, high-proof beverages brought in 28 million euros for the treasury—4.5 percent less than the previous year.

Who is particularly affected
It will hit especially hard those who enjoy spirits such as gin, rum, whiskey, vodka, or liqueurs. Cocktail lovers and partygoers must brace themselves for more expensive nights out at bars. The hospitality industry could pass the tax on one-to-one—or try to absorb part of the cost.

It is considered a done deal that the increase will actually take effect—the government has already reached an agreement. Only the exact implementation is currently being worked out.

For fans of hard liquor, enjoying a drink will soon become more expensive. About one euro more per bottle of vodka, five cents more per gin and tonic—and that’s just in taxes. So anyone who wants to stock up on spirits at the old prices should act now.