UK Vape Tax 2026: How Much More Will You Pay?

TL;DR

The Tobacco and Vapes Act is now law as of 29 April 2026. From 1 October 2026, the UK's new Vaping Products Duty adds £2.20 per 10ml to every e-liquid sold, nicotine-free included. With VAT, that's £2.64 per 10ml landing on your bill. But the real sting is in the format: prefilled pod users pay 21% more per pack, while shortfill vapers face increases of up to 245%, because the duty taxes volume, not risk. A 100ml shortfill with two nic shots could cost up to £44.63. Here's the full breakdown of what each product type will cost you from October.

Key Highlights

In 2024, the government banned disposable vapes and announced a sweeping new tax on all e-liquids. The vaping community had braced for the ban, but the scale of the levy came as a shock.

The Vaping Products Duty (VPD) lands on 1 October 2026, adding £2.20 per 10ml to every bottle of vape juice sold in the UK. That includes nicotine-free liquid. It hits hardest on refillable kits and shortfills, the formats most used by adult ex-smokers, and the ones that offer the biggest savings over tobacco.

This tax is aimed at an industry that is endorsed by health professionals⁽¹⁾ as a much safer alternative to smoking and remains one of the government's own recommended quit tools through the Swap to Stop scheme. Yet adult vapers are now facing steep price increases, potential flavour restrictions, and a black market that will only grow as legitimate costs rise.

Vaping is regarded as the most successful nicotine replacement therapy available, responsible for helping over 2.7m smokers in the UK successfully quit their habit.⁽²⁾ The low cost of owning and maintaining a vape kit is one of the biggest motivators to get smokers to make the switch.

Here's what the new duty means for your wallet, and what retailers need to know before October.

Table of contents

1. Why is there a new tax on vaping?

The new vaping duty forms part of the government’s ambition to tackle youth vaping and former Prime Minister Rishi Sunak's vision to create a ‘smokefree generation’. It followed a consultation between the health professionals and members of the public in 2023, which saw over 70% of respondents say that they thought an increase would reduce youth vaping.

The new legislation introduces a ban on disposable vapes and increases the cost of e-liquids to prevent those under 18 from taking up vaping. All vaping products are already subject to a 20% rate of VAT, and the additional levy is known as a ‘sin tax’. These are applied to products like alcohol, tobacco and sugar, that are seen as potentially harmful to consumers.

Whilst the number of minors who smoke in the UK is falling, the vaping rates among minors is on the rise. According to ASH, there has been a steady increase in the number of young people vaping over the past 3 years. A recent survey in 2023, revealed that 20.5% of children aged 11-17 said they had tried vaping at least once, which was up from 15.7% the previous year. The number of regular users is much lower but did increase from 2.0% in 2021 to 3.9% in 2023.(³⁾

Disposable vapes are the most popular choice among school children, accounting for 69% of the most commonly used devices. In comparison, refillable and prefilled vape kits affected by the new vape duty account for only 11% and 12% of use respectively. Vape flavours have also been blamed for increasing the appeal to children, and potential flavour restrictions are also being discussed. The biggest impact of the increased cost of vaping products will be on the wallets of adult vapers who have chosen to stop smoking.

Director of Vape Superstore, Ed Swain, shared his concerns: 'For many, vaping serves as a crucial tool in transitioning away from combustible tobacco products, offering a safer alternative. The imposition of a tax could price out individuals who rely on vaping as a harm reduction method. The current proposal would see some bottles of e-liquid double in price which will inevitably deter users from continuing their journey towards a smoke free life.'

2. How much is the UK vape tax going up?

The new vape duty will be introduced on 1st October 2026, and introduces a charge of £2.20 per 10ml of e-liquid. This scraps their previous plan to tax vape juice based on nicotine content and focuses soley on the volume of liquid instead.

This means that even zero nicotine e-liquid will be affected by the new duty increase.

• All 10ml vape liquids will increase by £2.64. This doubles the average cost of a 10ml vape juice to £6.59 per bottle.

• A 100ml shortfill will increase by £31.98 and a 50ml shortfill by £15.84.

• On top of that shortfill users will have to pay an additional £2.64 extra for each of their nic shots.

• The implication of this is that a 100ml shortfill with nic shots could now cost £44.63 per bottle.

Initially the duty was going to be based on the nicotine content, but respondents to the goverments industry consultation, were worried that vapers may try to save money by choosing a lower nicotine content than meets their needs. This could risk them returning to smoking when their cravings were not satisfied. So instead, the government decided that ALL e-liquids will be taxed the same flat rate of £2.20 per 10ml volume.

The duty is charged on volume, so it hits hardest on the current cheapest liquid. A 100ml shortfill made up with two nic shots is 120ml of taxable liquid in a £12.95 bottle, which is £31.68 in duty and VAT and a rise of 245%. A twin pack of prefilled pods holds 4ml, so the same rate adds £1.06 to a £4.95 pack and the price goes up 21%.

Per millilitre, pods stay the most expensive way to vape at £1.50 against 37p for the shortfill setup. The duty compresses the gap from roughly 11 times down to about 4, so shortfills will still be much cheaper. They just stop being the bargain they were.

Which is where the policy falls down. Shortfills are the format least used by under-18s and the one that puts the least plastic in the bin, and they take the biggest hit. Volume is what's taxed. Nothing in the duty accounts for who buys the product or what happens to the packaging.

3. How much will e-liquid cost in 2026?

The table below shows the average cost of e-liquid bottles and prefilled pods before and after the tax.

Bear in mind that the free nic shots often bundled with shortfills will likely disappear too, so you'll be paying extra for those as well. Shortfills used to be the cheapest way to vape by some distance. Prefilled pods take the smallest hit at about 18%. They're currently the dearest way to buy e-liquid at £1.75 per ml, against 41p for a 100ml shortfill and two nic shots. Looking at the total cost, you may think that prefilled pods are the cheapest way to go. But look at the cost per ml and you'll see that they're the most expensive. It all depends on how much you're willing to pay upfront and save in the long run.

A positive takeaway is the government's increase of the tax on tobacco by £2.20 per 100 cigarettes, they say this is to ensure that the cost of vaping remains as a financial incentive.

Following the tax hike, vaping will still be over six times cheaper than smoking.

The UK is not alone when it comes to vaping duties. Nearly every country in Europe taxes vaping liquids, and the new vape tax will place the UK 10th out of 27 for highest tax rates.

4. The end of the free nic shot

Free nic shots are standard across the UK. Most shops, us included, throw them in with a shortfill.

That will stop on 1 October. A nic shot is 10ml of vaping liquid, so it carries the full £2.20 duty plus VAT the moment it's made or imported. Giving it away doesn't make the duty vanish. Somebody has already paid £2.64 for it before it reaches a shelf, and no shop can absorb that on every bottle it sells.

So nic shots become another line on your basket. Around £2.64 at the absolute minimum, more once the liquid itself is priced in.

A 100ml shortfill takes two. If you get through two 100ml setups a month, that's four shots, or roughly £10.50 a month you aren't paying today.

Which makes shots worth stocking now, while they're still free.

5. How to beat the 2026 Vape Tax

The duty is fixed at £2.20 per 10ml and there's no safe or legal way round it. What you can change is how much liquid you get through, and when you buy it.

Here are the best ways to cut costs after the vape tax.

Use higher resistance coils

Your coil decides how much e-liquid you get through, and it's the best way to control how much you use. Most refillable pod kits use 0.4Ω to 0.7Ω coils. Lower reistance coils use more power, which vapes through much more e-liquid. Move to a 0.8Ω or 1.2Ω coil at 12W to 14W and the same day's vaping uses about 2ml to 4ml.

A sub-ohm tank running a 0.15Ω coil at 60W to 80W will get through roughly 6ml to 12ml a day with steady all-day vaping.

At £2.64 in duty and VAT per 10ml, dropping from 8ml a day to 3ml saves you around £40 a month.

Nothing else on this list comes close, and it costs you nothing to try. Higher resistance coils also give you more flavour from less liquid and a tighter draw, which suits anyone vaping mouth-to-lung or looking for a cigarette like experience.

Know how long the cheap stock really lasts

A lot of the advice going round says stock up before 30 September. That's not quite how the rules work.

The duty applies to liquid produced in or imported into the UK from 1 October 2026. But retailers can keep selling stock they held before that date, without duty stamps, right through to 1 April 2027.

So pre-duty liquid doesn't disappear on 1 October. It drains away over about six months as shops sell through what they've got.

Prices will creep up through autumn and winter rather than jumping in one go. If you want pre-duty stock, the thing to watch is how long your usual shop's supply holds out, not the date on the calendar.

Stockpile the liquid that keeps the longest

Buying a year of e-liquid up front only works if it's still good to vape when you get to it. Check the best before and expiry dates and vape your e-liquid based on the date of expiry.

Shortfills have the best shelf life. There's no nicotine in them to oxidise, and a sealed 100ml bottle kept cool and dark will be fine two years on.

Nicotine liquid is different. Nic salts are stable and can last for up to 2 years, whereas freebase darkens sooner and can lose its edge after a year.

Proper storage is important if you're bulk buying. Keep your e-liquids in a cool, dark spot, like a cupboard. They should be sealed, upright, away from radiators and windowsills. Heat and light can greatly reduce the quality of your e-liquid over time. I don't recommend storing your vape juice in the fridge as extreme cold temperatures can also degrade the flavour and cause the ingredients to separate.

Check cost per ml before you switch format

The percentage increases make prefilled pods look like the safest bet. Pods rise about 21%, a 100ml shortfill setup about 245%.

But per ml, pods stay the most expensive option by a large margin. You will pay £1.50 per ml against 37p for a 100ml shortfill and two nic shots.

If you use shortfills and are thinking of moving to pods to escape the duty, you'd end up paying significantly more per ml than you do now. Think of shortfills like bulk buying e-liquid. You pay more now, but net the biggest savings.

Treat "duty free" offers with suspicion

You may see bundles advertised as absorbing or beating the new duty. They can't.

Vaping Products Duty is paid at manufacture or import, months before a bottle reaches a website or shop. By the time a retailer prices it up, the duty is already in the cost.

I set up multi-buys and bundles for a living, and the maths here is simple. Any discount on a post-duty bottle comes out of the retailer's margin, not out of HMRC's. So a deal can only get so big before the retailer is losing money on every bottle.

A genuine deal after October will be a retailer choosing to take less. Worth having. Just don't expect it to cancel out £2.64 per 10ml.

6. Expectations from the UK vape tax increase

The additional tax on vaping products is set to generate £445 million in revenue by 2028/9, which the government claims will be invested in the NHS and Trading Standards to help combat the black market.

The government hopes that the increase in the cost of vape products will reduce their appeal to teenagers who lack disposable income and, in conjunction with the disposable vapes ban, the expectation is that rates of underage vaping will decrease.

Concerns from the vaping industry centre around the financial impact that will be felt right through the entire supply chain from the manufacturer to the consumer.

Compounding this issue is the failure of the Tobacco and Vapes Bill to deliver any constructive measures to curb the proliferation of black market vape goods which are guaranteed to blossom as consumers seek out cheaper alternatives, this could potentially mean further loss of earnings for vaping wholesalers and retailers.

7. Will the Tax on Vapes Work?

The argument that the vaping tax will act as a deterrent doesn't make a distinction as to where children are getting their vapes from. It doesn't address cornershop vendors involved in the trade of black market vapes since, the primary source for most devices obtained by minors.

A 2023 survey by Action on Smoking and Health (ASH) revealed that 48% of children obtained their first vape product from a shop.⁽⁴⁾ Cornershops and so-called 'American Candy Stores' litter the high street, unscrupulously selling unregistered vape products often with no qualms as to who they are selling to.

Director of Vape Superstore, Ed Swain had this to say, 'The Government needs to get a handle on what the real issues are. The disposable ban always felt inevitable, but this is the result of a lack of funding provided to enforce the illicit sale and distribution of illegal products. To suggest that the money earned from this tax will be used to enforce such rogue sellers is disingenuous. The tax is a statement piece of legislation which will only serve to push back the public health progress made through vaping.'

The UK Vaping Industry Association (UKVIA) has been calling for a Vape Industry Licensing Scheme to be implemented to combat the surge of illicit market vaping products. It would be self funded and would pave the way for underground vendors to be traced and stopped from selling illegal vape products and introduce much higher penalties of up to £10,000 for underage selling.

Enforcement agencies cannot currently get a grip on the sale of illicit vapes and the only people affected by the price increase will be adult vapers and the entire legitimate vaping supply chain.⁽⁵⁾

The increase in the costs of e-liquid could see the average vaper spending an additional £20 - £30 a month on vaping. Further costs to people's monthly spending risk driving adult vapers away from legitimate sources and straight into the hands of an eager black market.

A Vape Juice Self Assessment...?

Another concern raised during the industry consultation was that the new vape duty would drive consumers to begin making their own vape juice at home, using unhygienic DIY methods.

In response, the government stated, "All vaping products will be within the scope of the duty including those produced at home from base ingredients, such as propylene glycol, vegetable glycerin, flavourings and nicotine. The new vape tax would be implemented at the point of manufacture." (⁶⁾

The government did not mention how they were planning to monitor and tax potentially millions of vapers making e-liquid in their own kitchens.

8. How will the vaping tax increase affect the economy?

The UK vaping market not only supports the economy but also contributes to easing the burden on health services by reducing the number of smokers and therefore, the amount of smoking-related illnesses.

In 2023 the vaping industry generated £2.8bn in total revenue, it provides almost 18,000 full-time jobs and is one of the rare industries contributing to economic value and harm reduction - not something every retail sector can say. Thanks to the vaping industry the NHS saved over £300m in 2019, on top of £310m in tax in 2021.⁽⁷⁾

The tax on vapes would hit consumer budgets and businesses, many of whom may struggle to find the resources to pay for the new increase in import costs.

The UK vape tax increase is an excise tax, which means that it begins at the manufacturer level. This could have a severe impact on smaller vape retailers, who may be at risk of going out of business if they lack the funds necessary to pay for the increased wholesale costs. Higher costs could affect pay, lead to downsizing and potential job losses in the sector and the forced closure of smaller enterprises unable to take the financial hit.

In short, small vape shops may be priced out of business by the tax increase on e-liquids. This may incentivise them to source e-liquids from the black market.

9. Frequently Asked Questions

10. Conclusion

Making vaping more expensive will negatively impact an industry that provides thousands of jobs and gives adult smokers a much healthier alternative, backed by the government and the NHS. It also fails to properly address the proliferation of black market products, which are the primary source of vape products for youth.

A higher tax on vape liquids risks reducing the appeal of vaping to adults, potentially dissuading smokers from making the switch and increasing the burden on health services. Although the government says that it has offset this effect with a one-off increase in tobacco duty, existing vapers could see their costs go up by more than a third, even as vaping remains cheaper than smoking.

Promises to use additional revenue to fund Trading Standards feel vague, lacking concrete planning and action, such as implementing an effective Vape Industry Licensing Scheme. The legitimate vaping industry has been advocating for this scheme for years, as it would make monitoring and enforcement significantly more effective.

If millions of vapers begin turning to DIY e-liquid manufacture, the government will need to find a way to track and enforce the new vape duty on homemade vape juice - that or tax the base ingredients. This seems unlikely, however, given the government's lack of control over the current black market.

If you'd like a more comprehensive look at all vaping regulations in the UK, read our UK Vaping Laws blog.

Share your thoughts on the UK Vape Duty in the comments section below.