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

Announced as part of the Spring Budget 2024, a brand-new UK vape tax will come into effect from October 2026. This means that all vape liquids sold in the UK, including both nicotine and nicotine-free options, will be taxed at £2.20 per 10ml. In simple terms, this is a major shake-up for the vaping industry, and prices are expected to rise.

In this guide, we’ll break down what the new vape tax actually is, why it’s been introduced, and what it means for UK vapers. Plus, expert insight from Chris Price, E-Commerce Manager at Vape Shop.

Contents

• What is the UK vape tax?
• How much is the UK vape tax increasing by?
• Are vape kits taxed under the 2026 Vaping Products Duty?
• When does the UK vape tax start?
• Why is the vape tax being introduced?
• So, will the vape tax work? Our expectations
• What are the Vaping Duty Stamps?
• What does the vape tax mean for vapers?
• What are the wider effects of the vape tax?

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. For example, a 2ml pod will incur a duty of 44p (2ml × £0.22) and a 10ml refill bottle will pick up the full £2.20 duty.

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

That’s an increase of around 66% after the new tax is introduced in October 2026.

"Shortfills — larger bottles of nicotine-free e-liquid that you mix with a nicotine shot — remain a popular choice for adult vapers and ex-smokers because they offer great value and flexibility. With the new duty applied per 10 ml, prices will rise, helping to discourage underage vaping while still keeping vaping far more affordable than a pack of cigarettes. For example, a 10 ml bottle of 10 mg/ml e-liquid contains roughly the same nicotine as 60–120 cigarettes, and larger 50 ml or 100 ml shortfills provide even more, making them an efficient and cost-effective option for those looking to quit smoking."

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

That’s more than double the current price — an increase of around 110% — showing just how significant the impact could be for vapers who rely on shortfills to keep vaping affordable.

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

That’s roughly a 13% increase, which is far less than the jump shortfills will face.

Chris says: “Smaller pods are hit with a much smaller tax increase compared to shortfills. That means they’ll look cheaper at the checkout, even though shortfills still offer better value in the long run.”

Even though shortfills look much more expensive upfront, they still offer far better value overall. A 50ml shortfill gives around 15,000 puffs for about £25 — roughly £1.70 per 1,000 puffs — while a 2ml pod offers around 600 puffs for £4.50, or about £7.50 per 1,000 puffs. So, shortfills may cost more at the checkout, but you get far more vaping time for your money.

Pods are a fantastic, convenient choice for many vapers, offering ease and consistency every time. While they still contain plastic, it’s important to dispose of them correctly to minimise environmental impact. You can find guidance on recycling pre-filled pods here. Enjoy your pods responsibly while supporting public health and sustainability.

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. That means devices like refillable pod kits, starter kits, and sub-ohm vapes aren’t subject to the £2.20 per 10ml charge. 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. By adding a flat-rate duty, they hope to make vaping less affordable for younger people who have limited disposable income and those who’ve never smoked. According to research by Action on Smoking and Health (ASH), around 18% of 11–17-year-olds had tried vaping in 2024, up from 15.8% in 2022.

So, will the vape tax work? Our expectations

"We fully support efforts to keep vapes out of the hands of young people," says Chris. "At the same time, it’s important that adult smokers can continue to access vaping as a less harmful alternative. Measures that protect public health while keeping vaping available for those who need it benefit everyone."

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, helping HMRC track products and crack down on counterfeit or illegal vapes.

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. Here’s what to expect:

• Higher prices across e-liquids and shortfills — Even with the new duty, vaping remains significantly more affordable than a pack of cigarettes.
• Changes to how vapers buy e-liquid — Larger bottles like shortfills will be hit harder overall, even though they still offer better value per ml. Pods remain convenient and reliable for many users.
• Legal, stamped products only — Every bottle of e-liquid sold legally in the UK will need a Vaping Duty Stamp, showing the new tax has been paid.

What are the wider effects of the vape tax?

• Public health and the NHS — The government expects the tax to raise hundreds of millions of pounds, which can be used to support NHS services and public health initiatives. These measures aim to protect the population while ensuring vaping remains an accessible, less harmful option for adult smokers.
• Environmental considerations — Prefilled pods and pod kits are a convenient and popular choice. While nicotine can be addictive and pods do contain plastic, customers can take simple steps to reduce their environmental impact. Many parts of prefilled pods, including the casing and caps, can be recycled responsibly. For guidance on recycling your pods safely, visit Vape Shop’s recycling page.

Find options to suit your budget after the 2026 tax with Vape Shop

“The vaping community has always played a key role in helping smokers quit, and we’ll keep doing just that,” says Chris. “As the new tax comes into effect, our focus will stay on offering trusted, legal, and affordable products to help adults make the switch safely.”

From easy-to-use pod kits and advanced sub ohm vapes to e-liquids like shortfills and nic salts, you’ll find a wide range of options to suit your needs and budget.