Starting January 1, 2025, vaping products sold in Alberta, Manitoba, New Brunswick, Yukon, and Prince Edward Island will require a province-specific excise stamp, increasing their price in these regions.
This new regulation applies to all vaping products manufactured or imported for sale in these provinces, impacting pricing and availability for consumers.
What's Changing
Starting July 1, 2024, Ontario, Quebec, Nunavut, and the Northwest Territories introduced a new provincial vape tax based on e-liquid volume on top of the federal vape tax. The combined federal and provincial tax now stands at $2.24 per 2 mL for the first 10 mL and $2.24 per 10 mL beyond that.
On January 1, 2025, Alberta, Manitoba, New Brunswick, Yukon, and Prince Edward Island will see similar changes. The overall vape excise tax in these regions amounts to $2.24 per 2 mL for the initial 10 mL and $2.24 per 10 mL thereafter. This includes $1.12 in Provincial tax and $1.12 in Federal tax.
These updates mean higher costs for vaping products in these regions, as province-specific excise stamps and taxes take effect.
Stay informed to understand how these changes could impact your purchases!
Vape Tax Timeline - 2025 Edition
Vape taxation in Canada has seen significant changes over the past few years, and new updates are set to roll out. Here's a quick timeline of the key changes and what to expect:
January 1, 2023: Federal Vape Excise Tax Introduced
The first-of-its-kind federal excise tax on vaping products was introduced at:
- $1.00 per 2 mL for the first 10 mL of vaping substance.
- $1.00 per 10 mL for any e-liquid volume beyond the first 10 mL.
July 1, 2024: 12% Federal Tax Hike + Provincial Vape Tax Announced
Federal vape tax increased by 12%, raising rates to:
- $1.12 per 2 mL for the first 10 mL.
- $1.12 per 10 mL for e-liquid beyond 10 mL.
Provincial vape taxes matching the federal rates were introduced in Ontario, Quebec, Nunavut, and Northwest Territories, bringing the total excise tax in these regions to:
- $2.24 per 2 mL for the first 10 mL.
- $2.24 per 10 mL beyond the first 10 mL.
September 30, 2024:
Manufacturers had to clear products taxed at old rates by this date creating extensive supply issues affecting Canadian vapers.
January 1, 2025: Provincial Tax Expands to More Provinces
The same provincial tax structure will apply to Alberta, Manitoba, New Brunswick, Yukon, and Prince Edward Island at following rates:
- $2.24 per 2 mL for the first 10 mL.
- $2.24 per 10 mL beyond the first 10 mL.
Vaping products sold in these provinces must carry province-specific excise stamps to indicate compliance with federal and provincial tax requirements.
March 31, 2025: Last Day to Buy Before Vaping Products without Provincial Stamps become illegal.
Starting April 1, 2025, all vaping products in AB, MB, NB, PEI, and Yukon must display a province-specific stamp to be legally sold. Products without this stamp will be illegal to purchase.
This change is expected to cause significant delays as manufacturers and retailers adapt to the new regulations and clear out existing stock.
Who is Affected?
With these changes, vaping products across participating provinces will see higher prices due to increased excise taxes and compliance costs to stamp each product with provincial tax stickers.
The goal of these updates is to standardize vaping regulations while generating additional tax revenue, estimated to add $310 million federally.
Small Businesses and Vape Shops
Small businesses and vape shops are among the hardest hit.
- Increased Costs: Compliance with the new provincial stamp requirements and tax reporting will add to their expenses.
- Dead inventory & Enviromental Impact: Dead inventory from unstamped products forces losses and adds environmental challenges with e-waste and disposal.
- Risk of Fines: Selling unstamped products can lead to significant penalties, which could impact their bottom line.
- Disruptions: Adapting to the new rules may cause delays in supply chains and inventory, making it harder to meet customer demand.
1.9 Million Vapers in Canada
Canadian Vapers will feel the impact as well.
- Higher Prices: Excise taxes and compliance fees will make vaping products more expensive, potentially bringing vape prices out of reach of price-sensitive Canadians who may no longer have the ability to choose for themselves.
- Limited Availability: Products without provincial stamps will be removed from shelves, and delays in restocking compliant items are expected.
- Fewer Options: Vape shops may struggle to adapt, potentially leading to fewer flavour and device choices.
It’s safe to say that the tax will create challenges for both businesses and customers as the industry adjusts to the new regulations.
Alberta Vape Tax
Starting January 1, 2025, Alberta will match federal excise taxes on vaping products, doubling the tax burden. This means an $1.12 per additional 10 mL. Total taxes: $11.20 on 10 mL, $15.68 on 30 mL, and $22.40 on 60 mL.
Many vapers are stocking up now to avoid the hike.
Manitoba Vape Tax
Starting January 1, 2025, Manitoba will introduce provincial vape taxes matching federal excise rates, doubling the total taxes on vaping products. This means $1.12 per 2 mL for the first 10 mL, then $1.12 per additional 10 mL—resulting in $11.20 tax on 10 mL, $15.68 on 30 mL, and $22.40 on 60 mL. With these changes, vaping in Manitoba will become significantly more expensive, prompting many to stock up before the tax takes effect.
Why Vaping is so Expensive in Canada now
Canada has the third highest vaping taxes in the world, just behind South Korea and Israel, South Korea’s vape tax is about $3.68 per milliliter, and Israel’s is around $3.26 per milliliter while Canada stands at $2.24 per 2 mL, depending on the province.
These high taxes hit casual vapers and budget-conscious Canadians the hardest, especially those who use smaller-capacity devices, depriving them of a choice they could previously afford.
Even with high taxes, vaping costs less than smoking. In Ontario, the tax on a pack of 20 cigarettes is about $3.70, while the tax on a 2 mL vape pod is only $2.24. Since a 2 mL pod provides around 500 puffs, the tax works out to just $0.20.
500 Puffs is a common benchmark because it’s roughly the number of puffs an average smoker gets from a pack of 20 cigarettes. For heavy smokers, switching to vaping can save a lot of money over time.
Vaping isn’t completely risk-free, but it’s much safer than smoking. Canada’s 20 mg/mL nicotine limit helps reduce addiction, and vaping doesn’t expose users to harmful chemicals like tar and carbon monoxide. This greatly lowers the health risks linked to smoking.
How To Save on The Vape Tax Increase?
Starting March 31, 2025, ELFBAR online store products in Alberta, Manitoba, New Brunswick, Yukon, and Prince Edward Island will reflect the new provincial pricing. Here are some tips to save money while staying committed to your vaping journey:
Invest in Pod & Hybrid Devices
Disposables are undeniably convenient, but pod systems and hybrids offer long-term savings as taxes rise. These refillable devices allow you to use e-liquids that are taxed at lower rates compared to pre-filled disposables, making them a more budget-friendly choice.
Stock Up Before the Tax Hits!
The last time a provincial tax was introduced, it took 2 months for products to return to the supply chain, and many missed out on their favourite flavours
Don’t wait—secure at least 2 months’ worth of your favourite vaping products before new provincial taxes take effect. . Shop now at pre-tax prices to avoid higher costs and ensure you stay stocked up on the flavours you love!
Ways to Earn
Redeem Points for Discounts
