After 1 October 2026, a 10ml bottle of e-liquid carries £2.20 in Vaping Products Duty, about £2.64 with VAT, while a pack of 20 cigarettes carries at least £10.38 in tobacco duty before VAT is even added. The new vape duty narrowed the gap between the two, but tobacco duty rose on the same day, and the tax on a single pack of cigarettes is still around five times the tax on a 10ml bottle. These figures come straight from HMRC's published rates (GOV.UK: Tobacco Products Duty rates; HMRC: Vaping Products Duty).
Shelf prices vary by brand, shop and pack size, so this guide focuses on the part of the price nobody can discount: tax. It sets out exactly how much duty and VAT each product carries, how the 1 October changes moved those numbers, and which vape formats the new duty affects most.
The short answer
- Vape duty: 22p per ml, or about 26.4p per ml once VAT is added.
- Cigarette duty: £394.09 per 1,000 cigarettes plus 16.5% of the retail price, with a minimum of £518.75 per 1,000.
- Minimum tobacco duty per pack of 20: £10.38, before VAT.
- Rolling tobacco duty: £574.30 per kg, so about £17.23 on a 30g pouch before VAT.
- 1 October 2026 tobacco rise: about £1.21 more per pack of 20 and £2.54 more per 30g pouch if passed on in full.
- Government aim: the extra tobacco uplift was set to keep the existing price gap between tobacco and vaping.
Is Vaping Still Cheaper Than Smoking After the 2026 Duty?
On tax alone, yes. The duty on a typical 10ml e-liquid is £2.20. The duty on a single pack of 20 cigarettes cannot legally fall below £10.38, because of the Minimum Excise Tax (GOV.UK). Add VAT and the gap grows, because VAT is charged on the full duty-inclusive price of both products.
The government built this gap in on purpose. Alongside the new vape duty, it added a one-off tobacco increase of £2.20 per 100 cigarettes and per 50g of other tobacco, which it says is designed to "preserve the price differential between vaping and tobacco products" (GOV.UK policy paper).
The government has not promised that every vape product will always cost less than every tobacco product. It has only said the uplift keeps the existing incentive in place. What you actually pay still depends on the product, how much you use and the retailer's own pricing.
Tax Per Product: Cigarettes, Rolling Tobacco and E-Liquid Compared
The table below shows the duty each product carries at the rates in force from 1 October 2026. Duty on vaping liquid and rolling tobacco is a fixed amount. Duty on cigarettes has a fixed part plus a percentage of the shelf price, so it rises as the pack price rises.
| Product | Duty rate from 1 Oct 2026 | Duty on one unit |
|---|---|---|
| 2ml prefilled pod | 22p per ml | £0.44 |
| 10ml e-liquid | 22p per ml | £2.20 |
| 100ml shortfill | 22p per ml | £22.00 |
| Pack of 20 cigarettes | £394.09 per 1,000 + 16.5% of retail price (minimum £518.75 per 1,000) | £10.38 minimum |
| 30g rolling tobacco | £574.30 per kg | £17.23 |
| 50g rolling tobacco | £574.30 per kg | £28.72 |
VAT at 20% is charged on top of all of these, on the full shelf price including duty. Sources: HMRC vaping duty rates and GOV.UK tobacco duty rates.
How much of a cigarette pack's price is tax?
Because cigarette duty includes a 16.5% share of the retail price, and VAT takes a further sixth of the price, the total tax on a pack depends on what it sells for. Here is the full tax bill at three example shelf prices:
| Example pack price (20) | Tobacco duty | VAT | Total tax | Tax share of price |
|---|---|---|---|---|
| £16.60 | £10.62 | £2.77 | £13.39 | 81% |
| £18.00 | £10.85 | £3.00 | £13.85 | 77% |
| £20.00 | £11.18 | £3.33 | £14.52 | 73% |
These are worked examples using the 1 October 2026 rates, not a survey of shop prices. At any of these prices, roughly 67p to 73p of every cigarette is tax.
What Changed for Tobacco on 1 October 2026?
Tobacco duty went up on the same day the vape duty started. The rise had two parts: the usual annual escalator of RPI plus 2 percentage points, and the extra one-off £2.20 per 100 cigarettes or 50g of other tobacco (GOV.UK).
| Rate | From 26 Nov 2025 | From 1 Oct 2026 |
|---|---|---|
| Cigarettes (fixed part, per 1,000) | £353.50 | £394.09 |
| Cigarettes (retail price part) | 16.5% | 16.5% |
| Minimum Excise Tax (per 1,000) | £471.93 | £518.75 |
| Hand-rolling tobacco (per kg) | £503.80 | £574.30 |
| Cigars (per kg) | £440.93 | £508.12 |
| Tobacco for heating (per kg) | £363.36 | £426.47 |
Why the tobacco rise works out at about £1.21 a pack
The fixed part of cigarette duty rose by £40.59 per 1,000 cigarettes, which is about 81p on a pack of 20. But that is not the whole story. If a retailer raises the shelf price to cover it, the 16.5% retail-price duty and the VAT also rise with the new price. Working that through, an 81p increase in fixed duty becomes about £1.21 on the shelf price when passed on in full.
Rolling tobacco is simpler, because its duty is a flat rate per kilogram. The £70.50 per kg increase adds about £2.12 of duty to a 30g pouch, or about £2.54 once VAT is included.
How Much Tax a Typical Day's Use Carries
At 2ml of e-liquid a day, Vaping Products Duty plus VAT adds about £3.70 a week, or around £193 a year. Consumption varies widely between people, so the table below shows three usage levels. There is no official figure for average daily e-liquid use.
| Daily e-liquid use | Duty + VAT per week | Duty + VAT per year |
|---|---|---|
| 1ml | £1.85 | about £96 |
| 2ml | £3.70 | about £193 |
| 3ml | £5.54 | about £289 |
For context, the tax carried by cigarettes at an example shelf price of £18 a pack:
| Cigarettes per day | Total tax per week | Total tax per year |
|---|---|---|
| 10 | about £48.50 | about £2,528 |
| 20 | about £96.95 | about £5,055 |
Research from UCL and Cancer Research UK, based on 2022 to 2024 survey data, found that average smokers in Great Britain get through roughly 8 to 12 cigarettes a day depending on region and background (UCL). These tables compare the tax built into each product, not the effects of using either one.
Which Vape Products Does the Duty Affect Most?
The vape duty hits cheap, high-volume liquids hardest in percentage terms and barely moves the price of prefilled pod kits. That is because the duty is a fixed 22p per ml, whatever the product originally cost.
| Example product | Example pre-duty price | Duty + VAT added | New price if passed on | Increase |
|---|---|---|---|---|
| 100ml shortfill | £12.99 | £26.40 | £39.39 | +203% |
| 10ml nic salt e-liquid | £3.99 | £2.64 | £6.63 | +66% |
| Twin pack of 2ml prefilled pods | £5.99 | £1.06 | £7.05 | +18% |
| Prefilled pod kit with one 2ml pod | £7.99 | £0.53 | £8.52 | +7% |
Prices are illustrative only, to show how a fixed per-ml duty affects products at different price points. Real prices vary by brand and retailer, and some businesses may absorb part of the duty.
What the duty does not touch
Vaping Products Duty applies only to liquid. Empty pod kits, refillable pods, tanks, coils, batteries and chargers carry no vape duty at all. Prefilled pod kits are taxed only on the few millilitres of liquid inside, which is why the percentage increase on a kit is so small.
Why Vape Prices Haven't Changed Yet
Products made or imported before 1 October 2026 are not liable to the duty, and HMRC allows retailers to sell that eligible unstamped stock until 31 March 2027 (HMRC). Many shops are still selling pre-duty stock at pre-duty prices.
Prices will change line by line as that stock runs out and duty-paid, stamped stock replaces it. By 1 April 2027, every vaping product sold in the UK must carry a valid duty stamp. Our full guide to Vaping Products Duty covers the stamps, dates and penalties in detail.
Tobacco is different. There was no equivalent grace period for the new tobacco rates, so tobacco products released from 1 October 2026 carry the higher duty immediately.
Is Vaping Cheaper Than Smoking for Every Product Type?
On tax, every vape format in this guide carries less duty per unit than a pack of 20 cigarettes. The one area where the numbers get closer is large shortfills: a 100ml shortfill now carries £22 in duty, which is more than the minimum duty on a pack of 20.
That comparison only tells part of the story, because a 100ml bottle is used over a much longer period than a single pack. The fairest way to compare is tax per day of typical use, as in the tables above, rather than tax per item.
What Else Affects the Gap
- Retailer pricing: duty is paid by manufacturers and importers, and HMRC says passing it on is a commercial decision (GOV.UK).
- Future budgets: tobacco duty normally rises every year by RPI plus 2 percentage points. The vape duty is a flat £2.20 per 10ml at the time of writing, and any future change would be announced at a Budget.
- Illicit products: unstamped, unregulated products may appear cheaper but carry legal and quality risks. From 1 April 2027, only duty-stamped vapes can be sold legally.
- Revenue expectations: HMRC estimates around 5.1 million people who vape are affected by the duty, and the Office for Budget Responsibility expects it to raise more than £550 million a year by 2030-31 (HMRC policy paper).
Note: this article explains how UK tax rates apply to vaping and tobacco products. It is not a recommendation to start vaping. Vaping products are for adults only.
Frequently Asked Questions
Is vaping still cheaper than smoking after the 2026 vape tax?
On tax alone, yes. A 10ml e-liquid carries £2.20 in duty, while a pack of 20 cigarettes carries at least £10.38 in duty before VAT. Tobacco duty also rose on 1 October 2026 to keep the existing price gap.
How much tax is on a 10ml vape liquid?
Vaping Products Duty is £2.20 per 10ml. With 20% VAT applied to the duty, that is about £2.64 of tax from the duty alone, plus VAT on the rest of the price.
How much tax is on a pack of 20 cigarettes in 2026?
From 1 October 2026, cigarette duty is £394.09 per 1,000 plus 16.5% of the retail price, with a minimum of £518.75 per 1,000. That means at least £10.38 of duty per pack before VAT. At an £18 shelf price, total tax including VAT is about £13.85.
How much did cigarettes go up on 1 October 2026?
The fixed duty rose by about 81p per pack of 20. If retailers pass it on in full, the knock-on effect on the 16.5% retail-price duty and VAT takes the shelf-price increase to about £1.21 per pack.
How much did rolling tobacco go up?
Hand-rolling tobacco duty rose from £503.80 to £574.30 per kg. That adds about £2.12 of duty to a 30g pouch, or around £2.54 including VAT.
Why did tobacco duty go up at the same time as the vape duty?
The government added a one-off increase of £2.20 per 100 cigarettes or 50g of tobacco, on top of the usual annual rise, to preserve the price difference between tobacco and vaping products.
How much more will vaping cost per year after the duty?
It depends on use. At 1ml of e-liquid a day, duty plus VAT adds about £96 a year. At 2ml it is about £193, and at 3ml about £289, if the full duty is passed on.
Which vape products go up the most?
Large, low-cost liquids such as 100ml shortfills see the biggest percentage rise, because £22 of duty is added to every 100ml. Prefilled pod kits rise least, as they contain only a few millilitres of liquid.
Is vape hardware affected by the duty?
No. The duty applies only to vaping liquid. Empty kits, refillable pods, tanks, coils and batteries are not subject to Vaping Products Duty.
Why are vape prices the same as before October 2026?
Stock made or imported before 1 October 2026 is not liable to the duty and can be sold until 31 March 2027. Prices will change as that stock sells out and duty-paid stock replaces it.
Will the vape duty go up in future?
At the time of writing the rate is a flat £2.20 per 10ml, and any change would be announced at a future Budget. Tobacco duty normally rises each year by RPI plus 2 percentage points.
