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The 2026 UK Vape Tax Increase Explained: What Does This Mean for Vapers?

What is the UK vape tax?

The UK vape tax, officially called the Vaping Products Duty (VPD), is a brand-new government tax announced in the Spring Budget 2024. It’s designed to apply to all e-liquids sold in the UK, whether they contain nicotine or not. The VPD means that from October 2026, every 10ml of e-liquid will be taxed at £2.20. That means shortfills, nicotine shots, and even zero-nicotine juices will all be affected.

How much is the UK vape tax increasing by?

From October 2026, all e-liquids, whether they contain nicotine or not, will be hit with a flat-rate Vaping Products Duty of £2.20 per 10ml. This duty is in addition to VAT, so once the duty is passed on, VAT will be calculated on the total retail price.

10ml e-liquid price increase example

Average price of a 10ml e-liquid bottle before the tax increase (including VAT): £3.99, Pre-VAT price: £3.33, New Vaping Products Duty: +£2.20, Plus VAT (20%) on the new total: +£1.10, Estimated new price: £6.64

Shortfill e-liquid price increase example

Average price of a 50 ml shortfill before the new tax (including VAT): £11.99, Pre-VAT price: £10.00, New Vaping Products Duty: +£11.00, Plus VAT (20%) on the new total: +£4.20, Estimated new retail price: £25.20

2ml pod price increase example

Average price of a 2 ml pod before the new tax (including VAT): £4.00, Pre-VAT price: £3.33, New Vaping Products Duty: +£0.44, Plus VAT (20%) on the new total: +£0.75, Estimated new price: £4.52

Are vape kits taxed under the 2026 Vaping Products Duty?

Vape kits themselves won’t be directly taxed under the new Vaping Products Duty (VPD). The duty only applies to e-liquids. However, any prefilled pods or cartridges that come with e-liquid inside will be, since the tax is calculated based on the amount of vape liquid in each product.

When does the UK vape tax start?

The new vape tax officially kicks in on 1 October 2026. That’s when the Vaping Products Duty comes into full effect, and any e-liquids sold in the UK will need to include the duty in their price.

Why is the vape tax being introduced?

The government’s main driver for introducing the Vaping Products Duty is to reduce the number of non-smokers and young people who vape by reducing the affordability of vaping products.

What are the Vaping Duty Stamps?

As part of the new tax, the government is also introducing Vaping Duty Stamps, which will appear on every bottle or pack of e-liquid sold in the UK. These stamps will show that the Vaping Products Duty has been paid and that the product is legally approved for sale.

What does the vape tax mean for vapers?

Once the new tax comes into effect, most vapers will notice some changes, both in prices and in the way vape products are sold. Higher prices across e-liquids and shortfills. Changes to how vapers buy e-liquid. Legal, stamped products only.

What are the wider effects of the vape tax?

Public health and the NHS. Environmental considerations.