Understanding the New Vape Liquid Taxation Coming in 2026: What It Means for Vapers and Vape Retailers

As vaping has become a prominent alternative to traditional tobacco products, governments worldwide are beginning to focus on regulations that shape the future of the industry. Starting in 2026, a new tax on vape liquids will come into effect in the UK, directly impacting both vapers and the businesses that support them. For many in the vaping community, this raises questions about affordability, accessibility, and the broader implications for vape culture. At Oxford Vapours, we’re here to keep you informed about what’s ahead and how these changes might impact you. 

The 2026 Vape Liquid Tax: What Is It?

The UK government has introduced a new tax structure that will specifically apply to vape liquids containing nicotine, with non-nicotine products remaining unaffected (at least for now). Much like taxes already levied on tobacco products, this excise duty is intended to create additional revenue for public health efforts while discouraging underage vaping. This means that the cost of nicotine-containing e-liquids will likely rise, potentially by a few pounds per bottle, depending on the volume and nicotine strength. 

The tax aims to bring vape liquid pricing closer to that of traditional cigarettes to deter dual usage (where people both vape and smoke) and prevent younger users from taking up vaping.

Why Is This Tax Being Introduced?

The government’s rationale behind the tax is threefold:

• Public Health Concerns: Vaping among young people has increased over the past few years, with fruity, candy-like flavours often appealing to teens. By imposing taxes on nicotine e-liquids, the government hopes to create a barrier that discourages minors from purchasing vape products.
• Revenue Generation: As fewer people smoke cigarettes, tobacco tax revenue has seen a steady decline. The vape liquid tax provides a new avenue for the government to fund health services and other public initiatives.
• Aligning Vaping and Smoking Costs: With the new tax, the government seeks to reduce the price disparity between traditional cigarettes and vape liquids, thus discouraging individuals from picking up vaping solely for financial reasons.

How Will the Tax Affect Prices?

The government is looking to introduce a tax of £2.20 per 10ml, but the tax will likely be calculated based on either volume or nicotine strength. For instance, larger bottles with higher nicotine concentrations might see a higher tax increase, as would high-nicotine products in general. 

Here’s a rough idea of what to expect:

• Shortfills with Nicotine Shots: If you purchase short fill bottles and add nicotine shots, both the bottle and the shot may be subject to the new tax. This could mean an extra pound or more per product, which can add up if you’re a frequent vaper.
• Pre-Made E-Liquids: For those who buy smaller, ready-to-vape e-liquids, the tax might increase the price per 10ml bottle by around 30-50%. This change will affect those who regularly buy in bulk, or who can only afford 1 10ml bottle of e-liquid at a time.
• Nicotine-Free Liquids: If you prefer non-nicotine e-liquids, you won’t see a price increase for now. However, it’s worth noting that regulatory bodies may revisit this in the future, depending on market trends.

What This Means for Vape Retailers

For retailers like Oxford Vapours, the tax will likely bring some shifts. Prices will inevitably rise, which may affect overall demand and could require adjustments to inventory and ordering practices. As vape shops adapt, you might see promotions, loyalty programs, and other initiatives designed to keep vaping affordable for customers who rely on it as a smoking cessation tool.

Retailers may also need to increase transparency around pricing to ensure customers understand why these changes are happening. This is a great opportunity for retailers to reinforce the importance of vaping as a harm-reduction tool and help customers navigate these new expenses.

What Vapers Can Do to Prepare

If you’re a regular vaper, here are a few tips to prepare for the upcoming tax changes:

• Consider Stocking Up: Buying e-liquids before 2026 could save you money in the short term. However, keep in mind that vape liquids do have a shelf life, so only buy what you can use.
• Explore Lower Nicotine Strengths: Reducing nicotine strength over time may help you adjust to lower-cost options, especially if the tax heavily impacts higher-nicotine liquids.
• Support Advocacy: Several vaping advocacy groups are actively working to shape fair policies for vapers. By joining or supporting these groups, you can contribute to a balanced conversation about vaping’s role in harm reduction and public health.

Conclusion

The 2026 vape liquid tax marks a new chapter in the UK’s vaping landscape. For many, it will mean a slight increase in costs, but it doesn’t have to be a roadblock to vaping or to those using it to transition away from smoking. At Oxford Vapours, we’re committed to keeping you informed, helping you adapt, and continuing to provide quality products at fair prices.