Canadian Vaping Excise Tax Explained (Updated 2024)

• An excise tax is any tax legislated by a country to goods or services sold for use within its borders.
• Canada’s excise tax on vape products came into effect on October 1, 2022. It was $1 on every 2mL or g of product up to 10 units, plus $1 per 10mL or g thereafter (rounded up to the nearest unit).
• A tax increase of an additional 12% comes into effect July 2024. This will make the tax $1.12 on every 2mL or g of product up to 10 units, plus $1.12 for every 10 mL or g thereafter (rounded up to the nearest unit).
• Ontario, Quebec, The Northwest Territories, and Nunavut have already implemented this additional excise tax. Other provinces may impose their own excise taxes in 2025.
• The excise tax has required that all e-liquids, disposable vapes, pre-filled systems, and DIY products used to make e-juice bear an excise stamp since January 1, 2023.
• Many businesses have raised their prices to compensate for these taxes, increasing costs for consumers. Still, vaping remains considerably more affordable than smoking cigarettes (e-liquid will still only cost ~25% as much as cigarettes).

Canada has imposed an excise tax on vaping products imported to or sold in the country since October 1st, 2022—but new changes are coming. What do they mean for you?

U Vape follows the latest developments in Canada to help you keep purchasing and using the highest-quality vaping products. Below, we’ll explain everything you need to know about Canada’s vaping excise tax so you can find out how you’re affected.

Excise taxes or excise duties apply to specific goods manufactured within a country or imported for use in that country. This makes them different from tariffs (which apply to goods imported between countries to regulate competition and protect domestic suppliers).

Numerous products are subject to excise taxes in Canada. Excise taxes on the following goods existed in Canada before the tax on vaping products:

• Spirits
• Wine
• Tobacco products
• Cannabis products

Although excise taxes must technically be paid by the manufacturers or importers of the products they apply to, nearly all businesses affected by excise taxes raise their prices to compensate, increasing consumer prices as a result.

Canada’s excise tax on vaping products requires a duty to be paid on all vaping products intended for use in a vape device in Canada. These goods also require a stamp confirming that the appropriate duties were paid.

The Canada vaping excise tax came into effect on October 1, 2022, with a transition period that ended on December 31, 2022. Since January 1, 2023, buying or selling unstamped products has been illegal.

Effective July 1, 2024, additional vaping duty of 12% will be imposed on vaping products manufactured in Canada or imported for consumption, use, or sale.

Several provinces and territories have already applied their own identical provincial duties to these products. This means that in the following provinces and territories, the total excise tax—including the federal 12% increase—effectively doubles

• Ontario
• Quebec
• Northwest Territories
• Nunavut

It’s possible that other provinces will also impose extra duties in 2025. That could mean a major price hike for vape users.

Frequently Asked Questions about the Canada Vaping Excise Tax

Many users of vaping products have questions about how the excise tax affects them. We’ve put answers to some of the most common ones below:

How Much Is the Canada Vaping Excise Tax?

The new excise duty on vaping products for use in Canada applies as follows:

• $1 per 2mL or g (for liquid vs. solid products) for the first 10 mL or g of product packaged in a given device or container.
• $1 per 10mL or g for amounts above the initial 10 mL or g.

When you apply the new 12% increase, that goes up to:

• $1.12 per 2 mL or g for the first 10 mL or g.
• $1.12 per 10 mL or g for amounts above the initial 10 mL or g​.

Amounts are rounded up to the nearest mL or g to calculate the amount of the final duty. Here’s how that looks for standard e-liquid containers in the provinces and territories that don’t have their own identical duties yet:

(Effective July 1, 2024)

(Effective July 1, 2024)

And here’s how it looks if you’re in Ontario, Quebec, The Northwest Territories, or Nunavut—which have imposed their own identical duties in addition to the total new excise tax:

(Effective July 1, 2024)

Imposed by Province/Territory 

(Effective July 1, 2024)

Who Pays the Canada Vaping Excise Tax & When?

It depends on whether the product being taxed is made in Canada or imported.

• The duties for vaping products made in Canada must be paid when the product is packaged, by the product licensee (i.e. the party packaging the product).
• For imported products, the duty must be paid at the time of importation by the party liable under the Canada Customs Act. This is usually the owner or importer of the product.

Did the Canada Vaping Excise Tax Make Vaping More Expensive?

Many businesses manufacturing or importing vaping products raised their prices to compensate for the excise tax, passing the costs onto consumers. This has significantly raised the costs of vaping for many customers.

But it’s not all bad news. Remember, if you use cannabis or tobacco products (among others), you’ve almost certainly already been paying for the excise tax on them already. Vaping remains more cost-effective than smoking, although the new excise tax certainly cuts into the amount you save.

Does the Canada Vaping Excise Tax Apply to Devices or Just e-Juice?

The excise tax applies to e-liquid, disposable vapes, pre-filled pod systems, and nic base sold for use in vaping. However, it does not apply to hardware.

That means no price hike for refillable devices that haven’t been pre-filled before being packaged and sold. Many open pod systems have been unaffected.

Understanding the ways that laws and regulations can affect your ability to buy vaping products helps you plan and budget for your devices, e-liquids, and accessories. To learn more or discover our wide range of high-quality vaping products available across Canada, contact UVape and speak with a team member who can answer your questions.