Since starting Canada Vapes in 2010, we’ve had the joy of providing vaping products to Canadians, and hearing thousands of amazing testimonials from ex-smokers turned to vapers. During our time in the vaping world, there have been many bumps, hurdles, and zigzags to navigate. One of those things has been excise taxes. For you, our valued customers, we feel a responsibility to give you an understanding of what vaping excise tax is so you know where your money is going.  

In June of 2022, a vaping excise tax was approved by the Canadian Federal government.  This tax went into effect on October 1, 2022, and applies to any manufactured vaping products, including e-liquid bottles and disposable vapes for sale across Canada. 

How Are Excise Taxes Calculated?

For vaping products intended for consumption, sale or use in all provinces:

Vaping Duty (Federal Excise Tax)

• $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 mL

Customers in provinces and territories not participating in the coordinated system (including Saskatchewan, British Columbia, and Northwest Territories) will only be charged the federal excise tax, resulting in a lower final price.

In provinces participating in the coordinated vaping duty system, both federal and provincial excise taxes apply, resulting in the combined totals shown in the table below. This includes Ontario, Quebec, Nova Scotia, New Brunswick, Manitoba, Prince Edward Island, Alberta, Yukon, Northwest Territories, and Nunavut.

Here’s how provincial excise taxes are calculated:

Additional Vaping Duty (Provincial Excise Tax):

• $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 mL

Product	Provincial Excise Tax	Federal Excise Tax	Total Provincial + Federal Excise Tax
60ml E-Liquid Bottle	$11.20	$11.20	$22.40
120ml E-Liquid Bottle	$16.80	$16.80	$33.60
10ml Disposable	$5.60	$5.60	$11.20
30ml Disposable (i.e. CV NOVA and CV SUPERNOVA)	$7.84	$7.84	$15.68

Learn more about calculating excise duty on vaping products here.

Other Taxes That Apply to Vaping

In addition to federal and provincial excise taxes, vaping products in Canada are also subject to standard sales taxes, which vary by province.

• HST (Harmonized Sales Tax) – a combined federal and provincial tax
• GST (Goods and Services Tax) – the federal portion (5%)
• PST (Provincial Sales Tax) – applied separately in some provinces

These taxes apply to both vaping devices (hardware) and e-liquids, and are calculated based on the final retail price.

Provinces with Additional PST on Vaping Products

Some provinces apply additional or higher PST rates specifically to vaping products, which increases the total cost beyond standard sales tax:

• British Columbia – 20% PST on vaping products
• Saskatchewan – 20% vapour products tax (in addition to standard PST)
• Newfoundland and Labrador – 20% retail sales tax on vaping products

Important to Know

• Unlike excise tax (which is based on liquid volume), sales taxes are based on the total purchase price, including devices, accessories, and e-liquids.
• Sales taxes are applied on top of excise taxes, meaning they are calculated on the final price after excise is included.
• PST and HST rates vary by province, so total taxes can differ significantly depending on where you are located.

Stamp Information

The stamps are almost identical to the tax stamps you currently see in Canada on alcohol, tobacco, and marijuana products. They are applied to all e-liquid products prior to distribution and include security features to verify authenticity and ensure the product has passed through the proper regulatory channels.

Province-Specific Excise Stamps

Province-Specific Excise Stamps indicate that the applicable federal and provincial excise duties have been paid on a vaping product. These stamps apply in provinces that participate in the coordinated vaping duty system, including Ontario, Quebec, Nova Scotia, New Brunswick, Manitoba, Prince Edward Island, Alberta, Yukon, Northwest Territories, and Nunavut.

In these jurisdictions, a single stamp represents both federal and provincial excise taxes. Each province or territory has its own stamp design, which helps identify where the product is authorized for sale.

Federal Tax Stamps

Federal tax stamps confirm that the federal excise duty has been paid in accordance with the Excise Act, 2001. These stamps are used in provinces and territories not participating in the coordinated vaping duty system, including British Columbia, Saskatchewan, and Newfoundland and Labrador.

While federal excise tax applies across all of Canada, products in coordinated provinces use a combined stamp, whereas non-participating provinces require a federal-only stamp.

Is Vaping Still Cheaper Than Smoking?

The short answer is – absolutely, and without question.  

Cigarette prices in Canada have continued to rise, primarily due to ongoing federal and provincial taxation aimed at curbing tobacco use. The average retail price of a pack of cigarettes typically falls between $15 and $23, depending on the province, brand, and pack size. Assuming a pack-a-day habit, a Canadian smoker can expect to spend between $5,475 and $8,395 annually on cigarettes.

In many provinces, prices are now commonly around $18–$21+ per pack, with some premium brands exceeding this range. However, pricing varies significantly by region. For example:

• Ontario: roughly $17–$20+ per pack
• Alberta: about $15–$18 per pack
• Quebec: often lower, around $12–$15 per packThis variation is largely driven by differences in provincial tax rates and public health strategies.

This variation is largely driven by differences in provincial tax rates and public health strategies.

While cigarette prices continue to climb, vaping offers a range of options at significantly lower price points. The cost varies depending on the type of device used, but all formats are meaningfully less expensive than smoking.

Disposable vapes are the most convenient option, with devices typically lasting 3–4 days and costing around $19.50 each. This works out to roughly $4.87 per day, or about $1,777 annually.

Pod systems (prefilled pods) offer a balance between convenience and cost. With a small upfront device cost and daily pod usage, the average comes to approximately $3.16 per day, or $1,155 per year.

Refillable devices with bottled e-liquid are the most cost-effective option. Even when factoring in coils, e-liquid, and excise taxes, the average daily cost is around $3.15, or roughly $1,150 annually.

The Bottom Line

Compared to the estimated $5,475 to $8,395 per year spent on cigarettes, vaping represents a substantial cost reduction.

• Disposable vapes: ~70%+ cheaper
• Pod systems: ~80%+ cheaper
• Refillable devices: up to 83% cheaper

While individual usage and preferences will impact exact costs, the overall trend is clear: vaping remains a significantly more affordable alternative to smoking in Canada.

Read our full article “Is Vaping Still Cheaper Than Smoking?” for more on this.

How Can I Save Money and Reduce Excise Taxes?

Buy Larger E-Liquid Bottles

To reduce the tax impact on your vaping products, we recommend you purchase larger bottle sizes of e-liquid.  This is by far the best value. We offer a large selection of 120ml bottles. Explore our flavours here.

The way the vaping tax works is the first 10ml of e-liquid is taxed at the highest rate ($1 per 2ml) and then all e-liquid above 10ml is taxed at a lower rate ($1 per 10ml).  Purchasing a 120ml bottle will reduce the tax by about 40% compared to purchasing a smaller 30ml bottle of e-liquid, and even more compared to pods and disposable vapes.

Consider Switching from Disposables to Refillable Vapes

We understand the ease of use of a disposable vape.  Unfortunately, these systems are taxed at the highest rates. You’ll get way more bang for your buck if you consider a refillable kit.  These systems last a long time and allow you to use e-liquid in larger bottles and pay less tax.  Not only will this provide some tax relief,  they are also much better for our environment by creating less waste!

Learn more about Disposable Vapes vs Refillable Vapes here.

What Canada Vapes Is Doing

Since the excise taxes came into place in 2022, we’ve been working hard to find ways that reduce the impact to our customers. Here are a few things you can count on: 

• We’re always releasing new, innovative e-liquid flavours, especially in our 120ml bottle sizes. These bigger bottles reduce the tax by approximately 40% (vs buying 30ml bottles).
• We will continue to provide sales and discounts for our customers. We update our sale page every Thursday and release new deals and promotions each month. Be sure to connect with us on Facebook to Instagram to keep up with promotions and new products.
• We launched a loyalty program that turns your purchases and engagement into actual cash. With True North Points, earn $$ on every purchase.
• We prioritize customer service, thank you gifts, and personal touches in orders. We know how much this means, especially in today’s world. We genuinely appreciate each and every customer who places an order and want to make sure you feel the love.

Have More Questions?

If you have any questions about excise taxes or anything else for that matter, our customer service team is more than happy to answer them all!  You can call us at 1-877-286-VAPE (M-F 9:30-4:30 EST), take advantage of our live chat, or email us anytime at support@canadavapes.com with any questions or concerns. 

Thank you for all the love and support you’ve shown to us over the years.  Some of our customers have been with us since the beginning and adapted to many different changes and evolutions within the vaping world.  We appreciate each and every one of our customers and realize every day that without you we would not be here.