As the popularity of vaping develops, it becomes a logical target for governments in need of tax income. Because smokers and ex-smokers typically purchase vapor products, tax authorities presume that money spent on e-cigarettes is money that would otherwise be spent on traditional tobacco products.
Vape taxes are currently being proposed and regularly passed in the United States and other countries.
United States
In the United States, there is no federal tax on vaping items. Bills to tax vapes have been introduced in Congress, but none have received the required traction to pass.
Vape taxes in the United States’ states, territories, and municipalities
Before 2019, vaping products were taxed in nine states and the District of Columbia.
This figure more than doubled in the first seven months of 2019, when the moral panic about JUUL and teen vaping, which had dominated headlines practically every day for over a year, forced politicians to act to “end the epidemic.”
As of early 2021, 29 U.S. states, as well as various towns and counties, the District of Columbia, and Puerto Rico levy a tax on vapor goods.
Alaska
While there is no state tax in Alaska, certain towns impose their own vape taxes:
Wholesale taxes on nicotine-containing items are 45 percent.
Anchorage The Borough has passed a 55% wholesale tax.
The wholesale tax in Matanuska-Susitna Borough is 55%.
California
63.49 percent of the wholesale cost for the fiscal year commencing July 1, 2021.
2.5% on all nicotine-containing vaping goods, including those purchased online from shops in other states—to the existing wholesale tax.
Colorado
From January 1, 2022, the rate will be 35%.
Connecticut
A $0.40 per milliliter discount on e-liquid in closed-system items (pods, cartridges, and cigalikes), and a 10% discount on open-system products (bottled e-liquid and devices).
Delaware
A nicotine-containing e-liquid tax of $0.05 per milliliter
The District of Columbia (D.C.)
The tax is now set at 96 percent of the wholesale cost of nicotine-containing e-liquid and devices.
Georgia
A $0.05 per milliliter tax on e-liquid in closed-system items (pods, cartridges, and cigalikes) and a 7% wholesale tax on open-system devices and bottled e-liquid
Illinois
All vaping items are subject to a 15% wholesale tax. Aside from the statewide tax, Cook County and the city of Chicago (which is in Cook County) have their vape taxes:
Chicago levies a $1.50 per unit tax on any nicotine-containing vaping goods (bottled e-liquid or prefilled devices), as well as a $1.20 per milliliter tax on the liquid itself. (Chicago vapers must also pay the Cook County tax of $0.20 per mL.)
Cook County levies a $0.20 per milliliter fee on nicotine-containing products.
Indiana
25% of wholesale cost on closed-system products such as prefilled pods, and 15% at retail for open-system products such as bottles. The tax will go into force on July 1, 2022.
Kansas
A $0.05 per milliliter levy on any e-liquid, nicotine or not.
Kentucky
15% tax on open-system devices and bottled e-liquid
$1.50 per unit tax on cartridges and prefilled pods
Louisiana
A nicotine-containing e-liquid tax of $0.05 per milliliter
Maine
All vaping items are subject to a wholesale tax of 43 percent.
Maryland
6% sales tax on all open-system vaping products (including e-liquid)
60% tax on e-liquid in containers with a capacity of less than 5 milliliters (pods, cartridges, disposables).
Massachusetts
All vaping items are subject to a 75% wholesale tax.
Minnesota
95 percent of wholesale on nicotine-containing finished items (cigalikes, pod vapes, bottled e-liquid) smuggled in from out of state. However, only the nicotine content of bottled e-liquid manufactured in Minnesota is taxed.
Nebraska
The state has no vaping product taxes
Omaha has included vaping products in its 3% tobacco tax.
Nevada
All vapor goods are subject to a 30% wholesale tax.
State of New Hampshire
A 8% wholesale tax on open-system vaping products and a $0.30 per milliliter tax on closed-system items (pods, cartridges, cigalikes)
Newark, New Jersey
In pod- and cartridge-based products, the price per milliliter is $0.10.
10% of the retail price of bottled e-liquid
Devices are discounted by 30% at wholesale.
State of New Mexico
12.5 percent wholesale discount on bottled liquid
Each pod, cartridge, or cigalike with a capacity of less than 5 milliliters costs $0.50.
New York City
All vapor goods will be subject to a 20% sale tax.
North Carolina (N.C.)
A nicotine-containing e-liquid tax of $0.05 per milliliter
Ohio
A $0.10 tax per milliliter is levied on nicotine-containing e-liquid.
Oregon
A wholesale levy of 65 percent on all nicotine “inhalant delivery devices,” including hardware and “components” (which include e-liquid).
Pennsylvania
Only e-liquid and devices containing e-liquid are subject to a 40% wholesale tax.
Puerto Rico
A $0.05 per milliliter e-liquid tax and a $3.00 per unit e-cigarette tax
Utah
A wholesale tax of 56% on e-liquid and prefilled devices
Vermont
A wholesale tax of 92 percent on e-liquid and devices—the highest tax imposed by any state.
Virginia
A tax of $0.066 per milliliter is levied on nicotine-containing e-liquid.
Washington
$0.27 per ml for e-juice in cartridges and pods than 5 ml
On liquids in containers bigger than 5 mL, the price is $0.09 per ml
West Virginia (W.V.)
All e-liquid, with or without nicotine, is subject to a $0.075 per milliliter tax.
Wisconsin imposes a $0.05 per milliliter tax on e-liquid sold in closed-system products (pods, cartridges, and cigalikes) with or without nicotine.
Wyoming
All vapor goods are subject to a 15% wholesale tax.
International Vape taxes
Albania
Nicotine-containing e-liquid is subject to a tax of 10 leke ($0.091 US) per milliliter.
Azerbaijan
All e-liquid is subject to a 20 manat ($11.60 US) per liter tax (about $0.01 per milliliter).
Bahrain
On nicotine-containing e-liquid, you can save 50% off the retail price.
Costa Rican
All vaping items and accessories are subject to a 20% wholesale tax.
Croatia
Zero
Cyprus
All e-liquids are subject to a €0.12 ($0.14 US) per milliliter tax.
Denmark
The Danish parliament has approved a DKK 2.00 ($0.30 US) per milliliter tax, which will take effect on July 1, 2022.
Ecuador
Vaping items are subject to a 150 percent wholesale tax on “other tobacco products.”
Finland
All e-liquids are subject to a €0.30 ($0.34 US) per milliliter tax.
Georgia
All e-liquids are subject to a 0.2 Georgian Lari ($0.066 US) tax.
Germany
Beginning July 1, 2022, all e-liquid will be subject to a €0.16 ($0.19 US) per milliliter tax.
Greece
All e-liquids are subject to a €0.10 ($0.11 US) per milliliter tax.
Hungary
All e-liquids are subject to a HUF 20 ($0.07 US) per milliliter tax.
Indonesia
Nicotine-containing e-liquid costs 57% of the retail price.
E-liquid in Israel is subject to a 270 percent wholesale tax and an 8.16 NIS per milliliter tax.
Italy
Nicotine-containing e-liquid costs €0.130289 ($0.15 US) per milliliter, whereas zero-nicotine products cost €0.08686 ($0.10 US)
Jordan
Devices and nicotine-containing e-liquid are taxed at 200 percent of their CIF (cost, insurance, and freight) value.
Kenya
3,000 Kenyan shillings ($27.33 US) for the gadget and 2,000 ($18.22 US) for the refills.
Kyrgyzstan
A tax of one Kyrgyzstani Som ($0.014 US) per milliliter is levied on nicotine-containing e-liquid.
Latvia levies a €0.01 ($0.01 US) per milliliter tax, as well as a €0.005 per milligram tax on the weight of nicotine used.
Lithuania
All e-liquids are subject to a €0.12 ($0.14 US) per milliliter tax.
Malaysia
Vaping equipment is subject to a 10% tax, while e-liquid is subject to a 40 sen ($0.10 US) per milliliter tax.
Maldives
On nicotine-containing e-liquid, pay 200 percent of the CIF (cost, insurance, and freight) value. Montenegro imposes a tax of €0.90 ($1.02 US) per milliliter on every e-liquid.
North Macedonia
E-liquid is subject to a tax of 0.2 Macedonian Denar ($0.0036 US) per milliliter.
Norway
4.5 Norwegian Krone ($0.51 US) tax per milliliter.
Palau
$294.12 (USD) for 17 g
Paraguay
a discount of 16% off the wholesale price
Philippines
37 Philippine pesos (PHP) per milliliter – Nicotine salt-based e-liquids
45 PHP per mL – freebase nicotine e-liquids
Poland
All e-liquids are subject to a 0.55 Polish Zloty (PLN) ($0.14 US) per milliliter tax.
Portugal
A nicotine-containing e-liquid levy of €0.32 ($0.37 US) per milliliter
Romania
Nicotine-containing e-liquid is subject to a 0.52 Romanian Leu ($0.12 US) per milliliter tax.
Russia
Disposable items (such as cigalikes) are taxed at 50 rubles ($0.81 US) per unit. E-liquid containing nicotine is taxed at 13 rubles ($0.21 USD) per milliliter.
Saudi Arabia
The tax on e-liquid and gadgets is 100% of the pre-tax price. This equals 50% of the retail price.
Serbia
All e-liquids are subject to a tax of 4.32 Serbian Dinar ($0.044 US) per milliliter.
Slovenia
Nicotine-containing e-liquid is subject to a €0.18 ($0.20 US) per milliliter levy.
South Korea has four unique e-liquid taxes, each with a specific expenditure purpose.
The different e-liquid taxes in South Korea total 1799 won per ml
Sweden
2 Swedish krona (SEK) per milliliter ($0.22 US) on nicotine-containing e-liquid with a maximum concentration of 15 mg/mL E-liquid with a concentration of 15-20 mg/mL is taxed at 4 SEK/mL
Togo
Taxed at a rate of up to 45 percent (believed to be based on the wholesale price)
Ukraine
All e-liquids are subject to a 3 Ukrainian hryvnia (UAH) ($0.11 US) tax per ml
UAE
The tax on e-liquid and gadgets is 100% of the pre-tax price. This equals 50% of the retail price.
Uzbekistan
500 Uzbekistani so’m per ml ($0.05 US) was imposed on e-liquid in 2020, but no confirmation or other data were found.