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 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

Excise Duty Rates

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.

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.

Excise Tax Rates

Example Price List