Vaping Taxes In United States And Around The World

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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.

Vaping Taxes In United States And Around The World 3

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.