What changes on 1 October 2026?
Two changes land on the same day:
Vaping Products Duty: £2.20 per 10ml of e-liquid, whatever the nicotine strength. With VAT, that’s about £2.64 per 10ml.
Tobacco duty rise: cigarette duty goes to £394.09 per 1,000 cigarettes plus 16.5% of the retail price. That adds roughly £1.21 to a pack of 20.
The tobacco rise includes a one-off £2.20 per 100 cigarettes. Government policy papers say this is to preserve the price gap between vaping and smoking.
Vape tax vs tobacco tax: side by side
Illustrative averages: 10ml bottle £3.95 before duty; 2ml pod £5.99 before duty; cigarette pack £16.50. Prices vary by brand and retailer.
The gap in one number
Look at excise duty on its own. A pack of 20 cigarettes carries about £10.60 of duty. A 2ml pod carries £0.44. That’s roughly 24 times more duty on the cigarettes.
What does it cost over a year?
Here are a few simple, illustrative habits. Yours will differ, of course.
Assumptions: prices as above, 365-day year. Real-world use varies a lot.
Tax % & Cost Comparisons
Tax % & Cost Comparisons
Percentage of Cost
2ml prefilled pods has the lowest % of Vape Tax
Cost Per Year
10ml of e-liquid has the lowest cost per year.
Who pays more tax?
Someone smoking a pack a day pays about £4,870 a year in duty and VAT. A one-pod-a-day vaper pays about £560. Someone getting through a 10ml bottle every three days pays about £400.
“Prices are going up, so is it still worth it?”
Fair question, and we won’t sugar-coat it. A 10ml bottle rises by roughly two-thirds, from about £3.95 to about £6.59. That stings a bit. But cigarettes go up too, and they start from a much higher base. In pounds, the gap stays huge.
Ways to keep your vaping costs down
Compare cost per ml, because duty is charged by volume.
Watch multibuy deals, which look different once duty is built in.
Remember nicotine-free liquid is taxed too, at the same rate per ml.
Keep an eye on your usage, as your own habit is the biggest cost factor.
What else is coming?
From 1 January 2027, only digital duty stamps can be newly affixed.
From 1 April 2027, all vaping products on the UK market must carry a valid duty stamp.
A quick, honest word
This post is about tax and cost, not health advice. Vaping isn’t risk-free and isn’t for anyone who doesn’t already smoke. If you’d like support to stop smoking, the NHS offers free local stop smoking services. Search “NHS Better Health Quit Smoking” to find yours.
FAQs
Is vaping still cheaper than smoking after the 2026 duty?
On the figures here, yes, by thousands of pounds a year at typical use.
How much is vape duty on a 10ml bottle?
£2.20 duty, or £2.64 with VAT.
Is tobacco duty going up as well?
Yes, on 1 October 2026, on top of the annual rise.
Does the duty apply to nicotine-free e-liquid?
Yes. It’s charged per ml.
Why is tobacco taxed so much more?
Cigarette duty has long been set high, and the 2026 rise was designed to keep the gap.