As vaping continues to grow in popularity, regulatory changes are increasingly shaping the landscape for both vapers and industry players. The UK government recently announced a new tax on vape liquids, set to take effect in October 2026. This development has left many in the vaping community wondering how this tax will impact their daily routines, the cost of their favourite products, and even the future of the industry itself.
Here, we’ll break down the details of this new tax, how it could affect you as a consumer, and what it might mean for the vaping community at large.
Why the Tax on Vape Liquids?
The UK government has expressed several motivations for introducing a new tax on vape liquids, with the primary goals being:
- Public Health Concerns: Government agencies are seeking to reduce vaping among young people and discourage nicotine use in general.
- Revenue Generation: Like other “sin taxes” (on alcohol and tobacco), this tax on vape liquids is aimed at generating additional revenue.
- Alignment with Tobacco Policies: Policymakers are also responding to a desire for parity between traditional tobacco products and vape products when it comes to taxation.
While vape products have long been marketed as a safer alternative to smoking, the growth of the market and the appeal of vaping to younger demographics have pushed the government to reassess its approach. This tax is one of the latest moves intended to align vaping with other regulated substances.
How Will the Tax Work?
The tax will be applied to all vape liquids, including nicotine-free and nicotine-containing options. While specific details on tax rates have yet to be released, we know that the tax will likely be calculated based on the volume of vape liquid, similar to the way excise taxes are applied to alcohol by volume. Here's what you can expect:
- Flat Rate Per Millilitre: The government may set a specific rate per millilitre of vape liquid, regardless of nicotine concentration.
- Impact on Larger Bottles: Larger bottles, such as 100ml shortfills, could be particularly affected, leading to a noticeable price increase for customers who prefer to buy in bulk.
- DIY Liquids and Nicotine Shots: It's still uncertain whether DIY mixers and nicotine shots will be subject to the same taxation, but it’s likely they will be included to prevent tax circumvention.
What Does This Mean for Vapers?
If you’re a regular vaper, you’re likely to feel the impact of this tax directly in your wallet. Here’s what you can expect:
- Increased Prices Across the Board: Vapers can expect a price increase for all vape liquids, regardless of nicotine content. This may push some to reconsider their choice of device, as smaller, more efficient pods might help conserve liquid and reduce costs over time.
- DIY Mixing May Become Less Affordable: DIY mixing, which has been a cost-effective choice for many vapers, may see higher costs if nicotine shots and unflavoured vape liquids are also taxed. However, vapers who mix their own liquids may still find it to be a cheaper option than purchasing ready-made vape liquids after the tax is implemented.
How Could This Affect the Vaping Industry?
This taxation policy will undoubtedly have a ripple effect across the vaping industry, including brands like Ohm Boy and other e-liquid manufacturers, as well as vape shops, both online and brick-and-mortar. Here are a few ways this change may play out:
- Higher Prices for Consumers: Higher prices could lead to a slowdown in new vapers entering the market, which may push companies to find ways to minimise costs and provide affordable options.
- Innovation in Low-Liquid Consumption Devices: As prices rise, manufacturers may focus on developing devices that use less liquid, increasing efficiency and minimising daily use to help vapers save money in the long term.
- Smaller, Boutique Brands May Face Challenges: Larger, established brands will likely adapt to these changes more easily, but smaller boutique brands may face challenges due to the increased costs of compliance and production, particularly if demand drops.
- Shift in Product Offerings: Brands may experiment with alternative products to offset the cost increases and stay attractive to consumers. Nicotine pouches and other non-liquid alternatives might see more interest if they aren’t subject to the same tax.
How Can You Prepare for the 2026 Tax?
As a vaper, there are a few ways you can prepare for this upcoming change:
- Explore Efficient Devices: Consider investing in a device that conserves vape liquid, as this will help offset some of the increased costs.
- Consider DIY Mixing: If you haven’t already, now might be a good time to look into DIY mixing, which could still provide some savings even after the tax is in place.
- Stay Informed: Follow news about the tax and look out for announcements from brands like Ohm Boy on how we plan to adapt to these changes to support our customers.
- Stock Up, But Be Smart: It might be tempting to stock up before the tax hits, but remember that vape liquids have a shelf life. Plan wisely to avoid wasted products.
Final Thoughts
The new tax on vape liquids coming in 2026 marks a significant shift in the vaping landscape in the UK, but it doesn’t mean the end of affordable vaping. With some planning and adjustments, vapers can continue to enjoy their favourite products while adapting to the new costs. At Ohm Boy, we are committed to helping our customers through this transition by keeping you informed, developing high-quality, efficient products, and advocating for a balanced approach to vaping regulations.