UK Vape Tax 2026: New Vaping Duty Could Add £137 a Year to Costs

A major change to the cost of vaping products is approaching in the UK, with a new Vaping Products Duty scheduled to take effect on 1 October 2026. The new tax is expected to increase the price of many popular e-liquids and vaping products, leaving regular users facing higher annual costs.

The new measure is part of the Government's wider approach to changing the affordability of vaping products. For consumers who regularly purchase e-liquid or prefilled pods, understanding how the new duty works could help them prepare for the price changes.

When will the new UK vaping tax begin?

The new UK vaping tax comes into force on 1 October 2026.

Under the new system, e-liquid produced in or imported into the UK will be subject to a duty of 22p per millilitre. Once VAT is added to the duty, the additional cost becomes approximately 26.4p per millilitre.

Importantly, the charge will apply regardless of the nicotine content of the product.

This means that different types of vaping liquids can be affected, including nic salts, freebase e-liquids, shortfills and prefilled pods.

Vape devices and hardware themselves are not covered by this particular duty, meaning the main impact is expected to be on products containing e-liquid.

How much more could vaping cost?

The amount a consumer pays will depend largely on how much e-liquid they use.

For example, a 10ml bottle of e-liquid currently priced at around £3 could face an additional £2.20 in duty. VAT applied to that duty could add another 44p.

If the full additional cost is passed directly to the customer, a £3 bottle could therefore rise to approximately £5.64.

That represents a substantial increase compared with the original retail price.

For someone purchasing one 10ml bottle every week, the additional cost could reach approximately £2.64 per week. Over a month, that works out at around £11.44, while the annual increase could be approximately £137.28.

The actual amount consumers pay will vary depending on the products they purchase, retailer pricing and whether businesses absorb some of the additional cost themselves.

Prefilled pods could also become more expensive

The impact of the new vaping duty is not limited to traditional bottles of e-liquid.

Prefilled pod systems are also expected to be affected because they contain vaping liquid. Popular products could therefore become more expensive once the duty is incorporated into retail prices.

One example highlighted in the source material is the Lost Mary BM6000 Prefilled Pod Kit. According to the report, the product could face an additional cost of approximately £3.16 per week, which could amount to more than £164 over a year for a regular user.

This demonstrates why the financial impact can differ considerably depending on how frequently someone vapes and which products they use.

Why is the Government introducing the vape duty?

The new tax forms part of the Government's broader plan to reduce the affordability of vaping products.

Taxes and duties can influence the final retail price of consumer products. By placing a specific charge on e-liquid, the Government is increasing the cost associated with vaping products while leaving vaping hardware outside the scope of this particular measure.

For consumers, the practical result is likely to be higher prices across a range of products.

However, the final retail price will not necessarily increase by exactly the amount of the duty. Retailers and manufacturers may make their own pricing decisions, meaning the increase could differ between brands, products and shops.

How does the new duty affect different types of vape products?

The duty is based on the volume of e-liquid rather than simply the type of device being used.

This means products containing different formulations can still be subject to the same basic rate.

Products affected include:

• Nicotine salt e-liquids
• Freebase e-liquids
• Shortfills
• Prefilled pods
• Other e-liquid products produced in or imported into the UK

The new charge is calculated according to millilitres, so people who use larger quantities of e-liquid could experience a greater overall increase.

Consumers should therefore consider their typical usage rather than focusing solely on the price of an individual bottle or pod.

When will existing vape stock be affected?

There is also a transition period for retailers.

Retailers will reportedly have a six-month sell-through period to sell remaining stock under the existing arrangements. This period is expected to end on 31 March 2027.

This means consumers may see differences in pricing during the transition period as businesses manage existing inventory and introduce products affected by the new duty.

Prices may therefore not change identically across every retailer on 1 October.

Cigarette prices are also expected to rise

The changes to vaping taxation are happening alongside an increase in tobacco duty.

According to the source article, cigarette prices are expected to rise from 1 October 2026, with an estimated increase of around £1.21 for a standard pack of 20 cigarettes.

A 30g packet of hand-rolling tobacco could increase by approximately £2.54.

This means both vaping and traditional tobacco products are facing additional costs around the same time.

For consumers who use either product regularly, these changes could have a noticeable effect on their annual spending.

The UK is not the first country to tax vaping products

The introduction of a vaping duty is not unique to the UK.

Ireland introduced its own vape tax in 2025, charging a flat rate of €0.50 per millilitre. According to the source material, the change contributed to a significant increase in the price of a typical 10ml bottle, with some products reaching almost €10 depending on the brand and retailer.

The Irish example illustrates how taxation can have a significant effect on the retail price of e-liquid.

However, prices in the UK will depend on the UK's specific duty structure, VAT and the pricing decisions made by manufacturers and retailers.

What should UK vapers expect?

The biggest change for consumers is likely to be the cost of regularly purchasing e-liquid and prefilled vaping products.

Someone who only uses small quantities may see a relatively modest increase in their spending. Regular users, particularly those purchasing larger volumes each week, could face considerably higher annual costs.

The reported figure of around £137 per year applies to a particular usage example and should not be treated as a universal increase for every vaper.

The actual cost will depend on individual consumption, product size, brand, retailer and future pricing decisions.

Final thoughts

The introduction of the UK Vaping Products Duty on 1 October 2026 is set to change the economics of vaping for many consumers.

With a duty of 22p per millilitre before VAT, products containing e-liquid are expected to become more expensive. Regular users could potentially spend more than £100 extra each year, while some higher-volume or higher-cost products could result in even larger increases.

Consumers should keep in mind that the exact retail price will depend on how manufacturers and retailers respond to the new tax.

As the October implementation date approaches, checking product prices and understanding personal e-liquid consumption may help consumers better estimate how the changes could affect their budgets.

Source

The Sun on 10 September 2026.

Disclaimer

This blog is provided for general informational purposes only. Tax rates, implementation dates, product prices and Government policies can change. The figures used in this article are based on the source material available at the time of writing and should not be considered a guarantee of future retail prices or personal financial costs. Readers should check official UK Government guidance and current retailer pricing for the latest information.