Excise Tax
An excise duty on vaping products, as announced in Budget 2022, is being implemented on October 1, 2022 through the introduction of a new excise duty framework. The excise duty applies to vaping substances that are manufactured in Canada or imported and that are intended for use in a vaping device in Canada.
Source: Excise duty on vaping products
Manufacturers will have to start duty-stamping products as of October 1st, 2022. Retailers can sell non-stamped products purchased before October 1st until January 1st. As of January 1st, all e-liquid sales in Canada must be excise stamped.
This does not apply to Hardware, Coils and Empty replacement Pods.
As of July 1, 2024, a 12% tax increase is applied to all vape products containing e-liquid. In addition, a provincial excise tax, equal to the federal rate, is added on top of the federal excise tax for Ontario, Quebec, Nunavut, and the Northwest Territories — effectively doubling the tax for these provinces.
Read more: Upcoming Changes to Canada Excise Tax on Vape Products
Tax Breakdown
| Non-specified provinces | Specified provinces |
|
Alberta |
Ontario |
| British Columbia | Quebec |
| Manitoba | Northwest Territories |
| New Brunswick | Nunavut |
| Newfoundland and Labrador | |
| Nova Scotia | |
| Prince Edward Island | |
| Saskatchewan | |
| Yukon |
The excise duty rates on vaping products are outlined in Schedule 8 of the Excise Act, 2001 and are as follows:
Non-specified provinces:
- $1.12 per 2 millilitres (mL), or fraction thereof, for the first 10 mL of vaping substance in the vaping device or immediate container
- $1.12 per 10 mL, or fraction thereof, for amounts over the first 10
| E-liquid amount | Federal excise tax |
| 10mL | $5.60 |
| 20mL | $6.72 |
| 30mL | $7.84 |
| 60mL | $11.20 |
| 100mL | $15.68 |
| 120mL | $17.92 |
Specified provinces:
- $2.24 per 2 millilitres (mL), or fraction thereof, for the first 10 mL of vaping substance in the vaping device or immediate container
- $2.24 per 10 mL, or fraction thereof, for amounts over the first 10
| E-liquid amount | Federal excise tax | Provincial excise tax | Total tax duty (FET + PET) |
| 10mL | $5.60 | $5.60 |
$11.20 |
| 20mL | $6.72 | $6.72 | $13.44 |
| 30mL | $7.84 | $7.84 | $15.68 |
| 60mL | $11.20 | $11.20 | $22.40 |
| 100mL | $15.68 | $15.68 | $31.36 |
| 120mL | $17.92 | $17.92 | $35.84 |
Example Price List
| Products | For non-specified provinces | For specified provinces | ||
|---|---|---|---|---|
| Tax | Price | Tax | Price | |
| RIPPER X 15K 20ML | $6.72 | $24.71 | $13.44 | $31.43 |
| FLEX XL 14K 25ML | $7.84 | $30.83 | $15.68 | $38.67 |
| THIS BRU MFG SALT 30ML | $7.84 | $25.83 | $15.68 | $33.67 |
| THIS BRU MFG FREEBASE 60ML | $11.20 | $36.19 | $22.40 | $47.39 |
| THIS BRU MFG FREEBASE 120mL | $17.92 | $61.91 | $35.84 | $79.83 |