Vape Tax in the UK: What You Need to Know Before October 2026

From October 2026, a new vape tax will come into effect across the UK, adding £2.20 per 10ml of e-liquid, regardless of nicotine content.

This flat-rate vape duty aims to raise government revenue, regulate vaping products, and discourage vaping among young people and non-smokers.

With nearly two years to go before the change, there’s still time for consumers and businesses to understand what this tax means and how it might impact costs.

In this article, we’ll break down exactly what the upcoming vape duty involves, how it will affect e-liquid prices and disposable vapes, and what vapers need to know to avoid any confusion or unnecessary concern.

What is the Upcoming Vape Duty and Why Was it Introduced?
The vape duty, set to start in October 2026, is a new excise tax that will add £2.20 per 10ml to the cost of e-liquids and vape products sold in the UK.

This tax, sometimes referred to as a “sin tax,” follows a similar structure to the current tobacco duty but specifically targets vaping products like e-liquids and disposable vapes. Unlike other product-specific taxes, the vape duty applies across the board to all e-liquids, regardless of nicotine strength.

The UK government introduced this vape tax as part of a broader fiscal policy to address public health concerns. The aim is to discourage vaping among young people and non-smokers, while also regulating the industry in response to its recent rapid growth.

Revenue generation is another factor behind the new tax. As the vaping sector continues to expand, the vape duty is expected to contribute to government finances in the same way tobacco taxes do, though it will target vaping products exclusively.

For clarity, it’s important to note that this tax won’t replace or affect existing tobacco duty, which will remain in place for traditional cigarettes and tobacco products. The vape duty is designed to be an additional measure specific to the vape market, recognising its separate regulatory needs.

In the following sections, we’ll explore how this new vape duty could impact costs and address any concerns that consumers might have ahead of the October 2026 start date.

How Does This Impact Vaping Costs for Consumers?

The vape duty set at £2.20 per 10ml of e-liquid means that consumers can expect prices to rise across vaping products, regardless of nicotine content. This change will directly affect all e-liquids, including those used in disposable vapes, nicotine-free products, and DIY e-liquid supplies.

For regular vapers, especially those who use higher volumes, this flat-rate tax will lead to noticeable price increases on products they purchase regularly. For instance, a 50ml bottle of e-liquid would incur an additional £11 in tax, raising its price by a considerable margin compared to current costs.

Nicotine-free e-liquid users will also be impacted by this duty, despite their products containing no nicotine. The tax applies universally, so even e-liquids with no nicotine will see the £2.20 per 10ml increase, a fact that may concern users who choose these products to avoid nicotine altogether.

The new duty could also influence the cost-benefit calculation for smokers looking to switch to vaping. While vaping has generally been seen as a more affordable alternative to traditional cigarettes, the added tax may narrow this financial gap, making it a potential factor in deciding whether to quit smoking.

DIY e-liquid users, who mix their own flavours and nicotine strengths, are likely to feel the impact as well, as bulk purchases of base liquids and flavourings will also be taxed at this flat rate. This change could alter the cost-effectiveness of DIY vaping for those who currently prefer mixing their own supplies.

It’s important to remember, however, that these price changes won’t come into effect until October 2026, so vapers and retailers alike have time to plan and prepare. Until then, consumers can continue to purchase their vape products at current prices without the added duty.

Consumer Pain Points: What Are the Concerns?
With the upcoming vape duty, consumers have raised several key concerns, as the tax will bring a number of changes to the cost of vaping products.

Price Increase:
One of the biggest worries is the overall increase in prices for all e-liquids. The £2.20 per 10ml vape duty applies universally, meaning that regular vapers, especially high-volume users, will see significant changes in their monthly expenses. For those relying on vaping as a more affordable alternative to smoking, this price shift may be felt even more.

Nicotine-Free Products Impacted:
The tax doesn’t differentiate between nicotine strengths, which means even nicotine-free e-liquids will be affected. Many nicotine-free users feel they’re being unfairly impacted, given they’ve chosen a nicotine-free option. This has raised questions on whether nicotine-free products should face the same duty as those containing nicotine.

Reduced Incentive for Quitting Smoking:
Another concern is that the added cost might reduce the incentive for smokers to switch to vaping. Traditionally, vaping has been considered a more economical alternative, but the vape duty could narrow the price gap between vaping products and traditional tobacco. For smokers contemplating a switch, this reduced cost benefit might become a factor in their decision.

Potential Quality or Supply Chain Issues:
The vape duty may also create concerns about product quality and supply. If manufacturers or retailers look to cut costs to manage the tax increase, consumers worry that product quality could be compromised. There’s also concern about possible stock issues as retailers and suppliers adjust to the new duty, which could impact availability or lead to limited options.

Affordability for DIY E-Liquid Users:
For DIY vapers who mix their own e-liquids, the flat-rate duty could increase costs on bulk supplies, making DIY vaping potentially less economical. This change impacts a segment of users who prefer to create their own e-liquid blends and may feel that their flexibility in customising e-liquids has become financially restrictive.

These are just some of the main pain points for consumers, who may have legitimate questions on how the vape duty will affect their vaping choices. With the official implementation date set for October 2026, consumers and retailers alike have time to consider these impacts and plan accordingly.

Misconceptions and the Truth About the Vape Tax Timeline
With discussions about the upcoming vape tax in the air, there are already some common misconceptions, particularly around when this duty will come into effect.
The most important fact for consumers to know is that the vape duty won’t start until October 2026. While the government has confirmed this implementation date, confusion has still arisen, especially as information circulates among vapers and retailers.

One major misconception is that prices might increase before 2026 due to this new duty. In reality, until the official start date, there should be no price changes related to the vape duty itself. Retailers and manufacturers are not obligated to adjust prices before this timeline, as the tax will not apply until October 2026. Any significant price increases before this date would not be due to the duty and would likely be driven by other factors, such as manufacturing or shipping costs.

Another point of confusion is around the registration and approval process, which begins in April 2026. This stage is for retailers and manufacturers to prepare for compliance with the duty regulations and to ensure they are ready for the tax requirements. However, this registration period is simply a preparatory step and does not mean consumers will see changes in pricing at this time.

By understanding these key facts and recognising the official timeline, consumers can better prepare without the worry of unexpected early price changes. This timeline ensures that vapers and retailers alike have ample time to understand and adjust to the vape duty well before its implementation in late 2026.

What This Means for Vapers and Retailers Right Now
For both vapers and retailers, the upcoming vape duty provides a clear timeline that allows for nearly two years to prepare. With the implementation date set for October 2026, immediate action isn’t necessary, but there are some important points to keep in mind as the deadline approaches.

For consumers, this means that current prices will stay the same until the duty comes into effect. There’s no immediate need to change purchasing habits based on this tax, as any price adjustments directly related to the vape duty are still a long way off. Consumers who regularly purchase e-liquids, DIY supplies, or disposable vapes can continue as usual, knowing that the duty won’t impact pricing until 2026.

For retailers and manufacturers, the upcoming duty provides time to plan and budget for potential changes in production, pricing, and stock management. The government will open registrations for the tax in April 2026, giving businesses a chance to ensure compliance well before October. During this period, retailers can focus on preparing their pricing strategies and communicating clearly with their customers to avoid any confusion or misinformation about upcoming price changes.

The vape duty may influence the cost structure of the vaping industry in the future, but for now, the day-to-day for both consumers and businesses remains the same. Staying informed about the tax and understanding the timeline will ensure that vapers and retailers alike are prepared well before the duty goes into effect.

Our Take: Why We’re Concerned About the Upcoming Vape Duty
From our perspective as a vape shop, this vape duty represents more than just a tax – it feels like a government cash grab that disregards the industry and the progress vaping has made in helping people quit smoking.

Already, there’s confusion among consumers, with some assuming the tax has come into effect, leading to a decline in sales and dampening interest in vaping products. This misinformation is creating unnecessary worry and is damaging to the industry. For a tax that doesn’t start until October 2026, the impact is already being felt, and we expect it will only worsen as the date approaches.

One of the biggest issues we see is the inclusion of nicotine-free products in the tax. Penalising people who have successfully reduced their nicotine intake is unreasonable and punishes those who have worked hard to lower their dependency. Taxing these products with the same flat rate is a move that lacks logic, especially given that nicotine-free users often seek vaping as a healthier alternative to smoking.

Moreover, we believe this tax will likely drive many vapers to the black market. Faced with rising prices and lack of clarity, some consumers may be tempted by unregulated sources, potentially compromising their safety. Even worse, this tax may push people back to smoking, undoing the very progress that vaping was meant to achieve. In trying to gain financially, the government risks creating a black market and undermining public health.

We also expect significant backlash from within the vaping industry, as businesses, customers, and advocates push back against a duty that seems more focused on filling government coffers than on protecting public health. This outcry will hopefully influence adjustments to the duty before it’s fully implemented.

As a business that has worked to help people transition from smoking, we feel let down by this new Labour government. Rather than working with the industry to achieve sensible regulation, they appear to be prioritising revenue at the cost of thousands of jobs and the livelihoods of those in the vape sector. It’s a disappointing move that seems set on benefiting government finances while risking the progress made in harm reduction and smoking cessation.

In short, we’re frustrated, and we believe the vaping community deserves better. The impact on businesses, the potential return to smoking for some, and the lack of distinction for nicotine-free products make this tax a poorly thought-out policy with serious consequences for our industry and its customers.

Conclusion
In summary, the new vape duty in the UK, set to begin in October 2026, introduces a flat-rate tax of £2.20 per 10ml on all e-liquids, whether they contain nicotine or not.

The government’s goal with this tax is to regulate vaping products, discourage youth vaping, and contribute additional revenue alongside existing tobacco duties. While the tax is expected to raise prices across vaping products, it’s important for vapers and retailers to remember that these changes are still nearly two years away.

Understanding how this vape duty will impact costs, especially for regular and high-volume users, is key. By keeping track of official timelines, consumers can avoid unnecessary concerns about early price increases and continue with their regular purchases until the duty takes effect. Retailers, too, have time to prepare for the required registration and adjust pricing strategies without needing to make immediate changes.

Staying informed about this duty and what it means for the vape industry is the best way for both consumers and retailers to ensure a smooth transition when the tax begins in 2026.