Vape Taxes Increased in Alberta, Manitoba & 3 More Provinces

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.

Important Update: Vape Tax Changes in Canada

Starting July 1, 2024, Ontario, Quebec, Nunavut, and the Northwest Territories introduced a new provincial vape tax, applied alongside the federal vape tax. The combined rate now stands at $2.24 per 2 mL for the first 10 mL and $2.24 per 10 mL.

 On January 1, 2025, Alberta, Manitoba, New Brunswick, Yukon, and Prince Edward Island will adopt similar changes, bringing the overall vape excise tax in these regions to $2.24 per 2 mL for the initial 10 mL and $2.24 per 10 mL beyond that.

These adjustments mean higher costs for vaping products across these regions as province-specific excise stamps and taxes come into effect. Stay informed to understand how these updates could impact your purchases!

Vape Tax Timeline - 2025 Edition

Vape taxation in Canada has undergone significant changes in recent years, with more updates set to roll out in 2025. Here’s a comprehensive timeline to help you stay informed:

January 1, 2023: Federal Vape Excise Tax Introduced

Canada’s first federal excise tax on vaping products took effect at the following rates:

• $1.00 per 2 mL for the first 10 mL of e-liquid.
• $1.00 per 10 mL for any volume beyond 10 mL.

July 1, 2024: 12% Federal Tax Hike + Provincial Vape Tax Announced

Federal tax rates increased by 12%, bringing the updated rates to:

• $1.12 per 2 mL for the first 10 mL.
• $1.12 per 10 mL for e-liquid volumes beyond 10 mL.

In addition, Ontario, Quebec, Nunavut, and the Northwest Territories introduced a provincial vape tax, matching the federal rates, resulting in:

• $2.24 per 2 mL for the first 10 mL.
• $2.24 per 10 mL for volumes exceeding 10 mL.

September 30, 2024: Manufacturers Clear Old-Rate Products

By this deadline, manufacturers were required to remove products taxed under the old rates. This transition caused supply chain disruptions, impacting product availability for Canadian vapers.

January 1, 2025: Provincial Tax Expands to More Provinces

The provincial tax structure will extend to Alberta, Manitoba, New Brunswick, Yukon, and Prince Edward Island, aligning with the following rates:

• $2.24 per 2 mL for the first 10 mL.
• $2.24 per 10 mL beyond the initial 10 mL.

All vaping products sold in these provinces must carry province-specific excise stamps to indicate compliance with the combined federal and provincial taxes.

March 31, 2025: Last Day to Buy Before Vaping Products without Provincial Stamps become illegal.

Effective April 1, 2025, all vaping products in AB, MB, NB, PEI, and Yukon must display a province-specific stamp to be legally sold. Any products lacking this stamp will be considered illegal for sale.

This shift is anticipated to cause significant delays as manufacturers and retailers adapt to the new regulations, clearing existing stock and ensuring compliance.

Who is Affected?

The new vape tax regulations will have widespread impacts across the vaping industry, from businesses to consumers. Here’s how:

Small Businesses and Vape Shops

Small businesses and vape shops are among those hit hardest by these changes.

• Increased Costs: Complying with new provincial stamp requirements and tax reporting processes will drive up operational expenses.
• Dead Inventory & Environmental Impact: Products without provincial stamps must be removed from shelves, leading to financial losses and environmental challenges, including e-waste and disposal issues.
• Risk of Fines: Selling unstamped products could result in significant penalties, directly impacting profitability.
• Disruptions: Adjusting to the new rules is likely to cause supply chain delays, inventory challenges, and difficulties meeting customer demand.

1.9 Million Vapers in Canada

Canadian vapers will also feel the effects of these changes.

• Higher Prices: Excise taxes and compliance fees will make vaping products more expensive, potentially pricing out cost-sensitive consumers.
• Limited Availability: Products without provincial stamps will be pulled from shelves, and delays in restocking compliant items may reduce access to vaping products.
• Fewer Options: Vape shops may struggle to adapt, leading to a potential reduction in the variety of flavors and devices available to customers.

The Bigger Picture

The goal of these regulations is to standardize vaping laws across provinces and generate an estimated $310 million in federal revenue, but the changes are expected to create challenges for businesses and consumers alike as the industry adjusts.

Staying informed and planning ahead will be crucial for navigating these shifts in the vaping landscape.

Alberta Vape Tax

Effective January 1, 2025, Alberta will match federal excise taxes on vaping products, doubling the tax burden. This means $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 increase.

Manitoba Vape Tax

Starting January 1, 2025, Manitoba will implement provincial vape taxes equal to federal excise rates, doubling the tax on vaping products. This results in $11.20 tax on 10 mL, $15.68 on 30 mL, and $22.40 on 60 mL. Many vapers are stocking up now to offset the upcoming price increases.

Why Vaping is so Expensive in Canada now 

Canada has the third-highest vaping taxes globally, following South Korea ($3.68 per mL) and Israel ($3.26 per mL). In comparison, Canada’s rate is $2.24 per 2 mL, varying by province.

(Source: Vaping360)

These taxes disproportionately affect casual vapers and budget-conscious Canadians, especially those using smaller-capacity devices, reducing the affordability of vaping as an alternative to smoking.

Despite high taxes, vaping remains more cost-effective than smoking:

• In Ontario, tax on a 2 mL vape pod is $2.24, compared to $3.70 for a pack of 20 cigarettes.
• A 2 mL pod provides ~500 puffs, about the same as a pack of cigarettes, making the tax just $0.20 per 500 puffs.

Vaping is also a healthier alternative to smoking:

• 20 mg/mL nicotine limits in Canada reduce addiction potential.
• Vaping avoids harmful chemicals like tar and carbon monoxide, significantly lowering health risks.

For heavy smokers, switching to vaping offers long-term cost savings and health benefits, even with Canada’s high taxes.

How To Save on The Vape Tax Increase?

Starting March 31, 2025, PopVapor online store’s prices in Alberta, Manitoba, New Brunswick, Yukon, and Prince Edward Island will reflect the new vape tax rates. If you’re looking to save some cash while staying stocked up, here’s how:

Switch to Pod or Hybrid Devices
Sure, disposables are easy to use, but if you’re serious about saving, pod systems and hybrids are the way to go. These refillable options let you use e-liquids that are taxed less than pre-filled disposables. Over time, they’re lighter on your wallet.

Stock Up Before Prices Jump
When taxes hit other provinces, it took two months for stores to restock, and a lot of vapers missed out on their favorite flavors. Don’t let that be you. 

Grab a couple of months’ worth of your go-to products now while prices are still low.

Don’t wait—get ahead of the price hike and keep enjoying the flavors you love without overspending!