What Is the UK Vape Tax?
The UK Government is introducing a new tax on vaping products known as the Vaping Products Duty (VPD). From 1 October 2026, almost all vaping liquids sold in the UK will be subject to an additional excise duty.
The aim of the new legislation is to create a tax system specifically for vaping products while maintaining a financial difference between the cost of vaping and traditional tobacco smoking.
Whether you use refillable vape kits, prefilled pod systems or nicotine-free e-liquids, the new duty is expected to increase the price of most vape products containing e-liquid.
When Does the Vape Tax Start?
The Vaping Products Duty officially comes into effect on 1 October 2026.
Manufacturers, importers and wholesalers must register for the scheme before the launch, allowing HMRC to collect the new duty across the supply chain.
Consumers are likely to notice price changes from October 2026 onwards as stock carrying the new duty reaches retailers.
How Much Is the UK Vape Tax?
The duty has been set at a flat rate of £2.20 for every 10ml of vaping liquid.
Unlike earlier proposals, the Government chose a single flat rate instead of charging different amounts based on nicotine strength. This simplifies the tax for both businesses and consumers.
Example Cost Increases
| Product | Additional Duty |
|---|---|
| 10ml e-liquid | £2.20 |
| 50ml shortfill | £11.00 |
| 100ml shortfill | £22.00 |
| 2ml prefilled pod | £0.44 |
These figures represent the duty before VAT and any retailer pricing decisions.
Which Vape Products Are Affected?
The new duty applies to nearly all vaping liquids intended for use in electronic cigarettes and vape devices.
This includes:
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Nicotine e-liquids
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Nicotine-free vape liquids
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Shortfills
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Nicotine shots
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Prefilled pods
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Prefilled cartridges
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Disposable or closed-system products containing e-liquid where applicable
The amount of duty is based on the volume of liquid, not the nicotine strength or device type.
How Will the Vape Tax Affect Different Products?
10ml E-Liquid
Small bottles will receive an additional £2.20 duty before VAT, making them noticeably more expensive than current prices.
Shortfills
Because the duty is calculated by liquid volume, larger bottles will see much bigger price increases.
For example:
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50ml shortfills incur £11.00 in duty.
-
100ml bottles incur £22.00 in duty.
Prefilled Pods
Pod systems will also become more expensive, although the increase depends on how much liquid each pod contains.
A standard 2ml pod attracts £0.44 of duty.
Can You Prepare for the Vape Tax?
There are several ways consumers may reduce the impact of future price increases.
Many experienced vapers choose refillable devices, larger-format e-liquids or bulk purchases where appropriate. Others compare brands and shop around for competitive pricing.
As with any regulated product, buying from reputable UK retailers helps ensure products comply with current legislation and safety standards.
Why Has the Government Introduced a Vape Tax?
The Government has stated several reasons for introducing the Vaping Products Duty.
These include:
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Creating a dedicated tax framework for vaping products.
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Discouraging non-smokers, particularly young people, from taking up vaping.
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Raising tax revenue through a regulated market.
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Maintaining a price difference between cigarettes and vaping products to encourage adult smokers to choose less harmful alternatives.
Alongside the new vape duty, tobacco duty has also been adjusted to preserve the financial incentive for smokers to switch away from cigarettes.
Will Vaping Still Be Cheaper Than Smoking?
Although vaping products are expected to become more expensive after October 2026, Government policy has been designed so that vaping generally remains less expensive than smoking traditional cigarettes.
Actual savings will vary depending on:
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Your daily nicotine consumption.
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The type of vape device you use.
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Whether you buy refillable or prefilled products.
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The brands you choose.
For many regular vapers using refillable devices, vaping is still expected to remain a lower-cost option compared with purchasing cigarettes regularly.
Frequently Asked Questions
Is the vape tax already in force?
No. The Vaping Products Duty begins on 1 October 2026.
Does the tax apply to nicotine-free vape liquid?
Yes. The duty applies to vaping liquid regardless of whether it contains nicotine.
Is the tax based on nicotine strength?
No. It is based entirely on the amount of e-liquid in the product.
Will every vape cost the same extra amount?
No. Products containing more liquid will attract more duty because the tax is calculated per 10ml.
Final Thoughts
The UK's Vaping Products Duty represents one of the biggest regulatory changes the vaping industry has seen in recent years. From October 2026, consumers can expect higher prices across most vaping products due to the introduction of a flat-rate duty on e-liquid.
Understanding how the tax works, which products it affects and how pricing may change can help consumers make informed decisions before the new rules come into effect.