UK Vape Tax 2026: What Does This Mean for You?
- This article was written by: Alex Eastland
- Published: September 30, 2026
- Last updated: September 30, 2026
What is the UK Vape Tax?
From 1 October 2026, the government will introduce Vaping Products Duty, a new £2.20 per 10ml flat-rate excise duty on vaping liquids. This is an industry-wide change and will affect the cost of duty-paid vaping products across the UK.
Vaping Products Duty forms part of a wider set of new requirements for vaping businesses, including new duty stamps, packaging updates and additional compliance measures.
The new tax on vapes applies to all vaping liquids regardless of nicotine strength, with the amount of duty based on the volume of liquid in the product.
Why Is the Vape Tax Being Introduced?
The government says Vaping Products Duty is being introduced to make vaping products less affordable and less appealing, particularly for young people and non-smokers. At the same time, Tobacco Duty is also being increased to help maintain the financial incentive for smokers to switch from cigarettes to vaping.
When Does the Vape Tax Start?
Vaping Products Duty comes into effect on 1 October 2026. Liable vaping products manufactured or imported into the UK after this date will be marked with vaping duty stamps when released for sale. The stamp forms part of the new system introduced by HMRC to identify compliant vaping products and trace them through the supply chain.
Will Vape Prices Increase on 1 October 2026?
Prices won’t necessarily increase everywhere from 1 October 2026. The government have allowed a transition period for retailers to sell through any unstamped stock that was manufactured or imported before the new duty comes into effect.
This means the timing of any price changes is likely to vary between products and retailers depending on when existing pre-duty stock sells out and when the new duty-paid stock is introduced.
At OK Vape, we don’t intend to increase our prices as soon as Vaping Products Duty comes into effect. When any price changes are needed, we’ll give our customers plenty of notice in advance.
How Much is the Rate of Vape Tax?
The vape tax will see an added £2.20 of tax per 10ml of e-liquid or £2.64 with added VAT. The tax targets volume rather than nicotine strength, which means even zero-nicotine e-liquids will be impacted by the tax increase.
How Could the Vape Tax Affect Prices?
The new vape tax is likely to affect vape prices in more ways than duty alone. Businesses will not only have to account for Vaping Products Duty, but also additional costs involved in meeting the new requirements, including vaping duty stamps, packaging changes and extra administration.
Which Products Does the Vape Tax Affect?
Vaping Products Duty applies to vaping liquid, including the e-liquid found in bottles, prefilled pods and refills. The amount of tax depends on the volume of liquid in the product.
E-Liquid Bottles
The vape tax applies to bottled e-liquids including freebase e-liquids, nic salts, shortfills, longfills and nic shots. Nicotine-free e-liquids are also included.
Prefilled Pods and Vape Refills
Vaping Products Duty also applies to the e-liquid contained in prefilled pods and vape refills, including Cigalike Refills and OK Pod Refills.
The tax is based on the amount of liquid in the product, meaning larger refills, like some big puff vapes, containing more e-liquid will have more duty applied based on their total liquid volume.
Which Vape Products Does the Vape Tax Not Affect?
The duty only applies to e-liquid itself. Vape devices or kits, coils, empty pods, batteries and other accessories are not affected by the new duty. Nicotine pouches are also excluded from the new tax, with heated tobacco also falling under a separate Tobacco Products Duty.
Vape Tax FAQs
Does the vape tax apply to nicotine-free e-liquid?
Unfortunately, even 0mg doesn’t mean tax-free for this vape tax. The duty applies to vaping liquid whether or not it contains nicotine, so nicotine-free e-liquids will also be affected.
Will vaping still be cheaper than smoking?
Vaping is still expected to be a fraction of the cost of smoking for many people. Alongside the introduction of the vape tax, the government is also increasing Tobacco Products Duty from 1 October 2026, adding an estimated duty of £1.21 to the price of a packet of 20 cigarettes.
The government says this increase is aimed at maintaining the price difference between smoking and vaping. You can read more about the ways vaping is cheaper than smoking in our blog.
Are vape kits being taxed?
No, the vaping liquid is liable for the increased tax but vape kits themselves aren’t. Devices, batteries, coils and empty pods aren’t subject to the new tax, although any e-liquid or prefilled pods included with a kit will be.
Are prefilled vape pods taxed?
Yes, Vaping Products Duty applies to the e-liquid within prefilled pods and vape refills. The amount of duty is based on the volume of liquid they contain.
Can you bring e-liquids into the UK?
Yes, if you’re travelling into Great Britain, you can bring up to 50ml of vaping products for personal use without paying UK duty or tax. From 1 October 2026, if you bring more than this allowance, you’ll need to declare it and pay tax and duty on the full amount. Different rules will apply when travelling into Northern Ireland.
