UK Vape Tax 2026: The Vaper's Guide
1st October. That’s the date in every vaper's mind in 2026. It’s when the UK will introduce a vape tax on all E-Liquids. That means, no matter what type of vape juice you use, bottled or prefilled pods, you’ll pay £0.22 extra per millilitre.
5ml = £1.10. 10ml = £2.20. It’s as simple as that. And while cost increases are never welcome, there’s no avoiding this one.
At IVG, our goal remains the same: to keep vaping affordable, help more smokers make the switch, and ensure current vapers stay smoke-free.
Because we make, test, and distribute our E-Liquids from start to finish, we’re in a strong position to guide you with the information you need to vape smartly, helping you plan ahead, stay compliant, and make the most of your products.
Read on to find out what’s taxable, how much it could cost you, and practical ways to save money.
Why is the Government Bringing in the Tax?
The government’s reasons for this tax are:
- Reduce the affordability of vapes to prevent youth vaping
- Use the funds generated from the tax to provide better enforcement and stop the distribution of illegal vapes
Sceptics argue:
- The government is trying to make up for a shortfall in tobacco taxes (10 billion in 2021 to 8 billion in 2025)
- The Vape Tax funds will be distributed to other departments as they aren’t ringfenced
- Vaping doesn’t cause the same illnesses as smoking, so we don’t need to raise funds to help the NHS
Can the Vape Tax be Prevented?
At this point, no. The duty is set by the government, and has been years in the making. While they’re partial to a U-turn, unfortunately, we can’t see it happening here.
Manufacturers, retailers and health professionals have lobbied for its abolition or amendment during consultations, but once it becomes law, it’s mandatory for all.
What Is Taxable & What Isn’t?
The Vape Tax only applies to E-Liquids. Here’s what you will and won’t pay tax on:
- Taxable: All bottled E-Liquids and prefilled pods, whether they contain nicotine or not. The tax applies per millilitre, so nicotine strength doesn’t matter.
- Not taxable: Any hardware, like devices and batteries, plus accessories like refillable pods, coils, wicks, and chargers.
How Much Will the Vape Tax Cost Me?
Below are estimated examples based on the new duty rate of £0.22 per millilitre (ml). Prices will vary, 20% VAT will apply, and other retail costs may apply.
| Product | Volume | Market Avg (£) | Duty (£) | Approx. Cost with Duty (£) |
|---|---|---|---|---|
| Small Puff pod | 2ml | 2–4.00 | 0.44 | 2.44–4.44 |
| Big Puff pod | 12ml | 6–9 | 2.64 | 8.64–11.64 |
| 10ml refill bottle | 10ml | 3–5 | 2.20 | 5.20–7.20 |
| 50ml shortfill bottle | 50ml | 7–9 | 11.00 | 18.00–20.00 |
| 100ml shortfill bottle | 100ml | 13–15 | 22.00 | 35.00–37.00 |
What to do next: Estimate your vape cost. Get the market price → add £0.22 per ml of liquid → add 20% VAT → new price (may change after potential additional costs).
What not to do next: Try to calculate exact amounts or panic about costs. The final impact of the duty won’t be clear until it comes into effect, so explore how to use E-Liquid efficiently or whether to switch devices.
How Can I Save Money?
We’ll get more practical tips when the duty comes into effect, and vapers start finding ways to maximise value, but here are a few suggestions based on what we know now:
- Stock Up: Keep an eye on deals throughout the year, such as Easter and Summer sales. Take any opportunity you can to stock up on E-Liquids before the tax increase.
- Switch from DTL to MTL: Mouth-to-lung (MTL) vaping uses less liquid and vapour than direct-to-lung (DTL) systems. Less liquid = less tax.
- Join loyalty schemes: if you buy online, most vaping companies have loyalty schemes where you can collect points and save money.
Read: MTL vs DTL: Which Style Should You Vape?
Vaping Duty, Stamps, and Compliance
All UK vaping products will include secure duty stamps to prove they are legal. Here’s what to expect:
- Small, tamper-evident labels (approx. 15–18mm × 42–44mm)
- Manufacturers must seal the packaging, whether it’s a box or bottle, so it cannot be opened without damaging the stamp
- The stamps cannot be reused
For you, this is a good sign that the product is regulated and safe. All IVG products will be compliant with all new regulations.
Does the Vape Tax Affect the Whole UK?
Mostly, yes. The tax applies in England, Scotland, Wales, and Northern Ireland, though enforcement may vary slightly by region.
Channel Islands and the Isle of Man are different: they set their own taxes, so check local rules if you live there or plan to travel.
Vaping vs Smoking: What Will Be Cheaper?
Tobacco taxes keep rising, so a pack of cigarettes that costs £18 today will be more expensive next year; most of that extra cost is tax, not the shop’s profit. Hand-rolling tobacco rises even faster.
Even with the vape tax and VAT, vaping is still cheaper than smoking, making it a smart, cost-effective alternative for anyone looking to stay smoke-free.
Let’s use the big puff pod example from the table above:
| Timeframe | Vaping Cost (1 Pod*/Week) | Cigarettes Cost (10/day) | Estimated Savings |
|---|---|---|---|
| Per Day | £1.50* | £9.00 | £7.50 |
| Per Week | £10.48 | £63.00 | £52.52 |
| Per Month | £41.92 | £270.00 | £228.08 |
| Per Year | £545.00 | £3,285.00 | £2,740.00 |
*Per day = New Price ÷ 7 (1 pod lasts 1 week) → £10.48 ÷ 7 = £1.50
Potential Impacts of Higher Vape Costs
- DTL vapers are disproportionately affected; higher costs for shortfills, nic shots, and prefilled pods can quickly add up
- Could increase the risk of young people, ex-smokers and vapers using unsafe or unregulated black market vapes and tobacco use
- Those trying to quit smoking might be put off by higher costs, potentially affecting public health goals
- People think of vaping as an equal to tobacco, undermining public trust in harm reduction
Why Does this Matter Now?
The truth is, it doesn’t. You can continue to vape as normal or make the switch from smoking without worrying about vaping costs rising. But on 1 October, the Vape Tax will affect you, so it’s worth bookmarking or saving this blog post and revisiting it as we update it throughout the year.
Vape Tax FAQs
Will there be a duty-free allowance? Yes. You can bring a small number of vaping products into the UK for personal use without paying VPD or applying for duty stamps. HMRC will confirm the exact allowance before 1 October 2026.
Can I buy vapes from overseas? Legally, yes. But any imported liquids may still be subject to VPD and VAT upon entering the UK. Couriers usually collect this before delivery.
How do I pay the Vape Tax? As a consumer, the tax is included in the price before you buy, so you don’t have to worry about any extra charges.
Do other countries have vape taxes? Yes. Some countries employ a Vape Tax per ml of E-Liquid. For example, Ireland’s tax stands at £0.43 per ml, one of the highest in Europe. Other countries to introduce a Vape Tax include Montenegro, Germany and Poland.
Aren’t vapes taxed anyway? Yes, at the typical rate of 20%. There has been no specific taxation on vape products previously.
Are vapes taxed the same as cigarettes? No. Cigarettes are taxed per pack and as a percentage of the price, plus VAT. Vapes are taxed per millilitre of E-Liquid, and hardware like devices, coils, and accessories aren’t taxed. Even after the duty, vaping will be cheaper than smoking.