Vaping Taxes in Canada Explained: How Federal Excise Duties Affect the Price You Pay

If you have noticed vaping products cost more in some provinces than others, or that prices have increased over the years, federal and provincial excise duties are a major reason. This article explains exactly how vaping taxes work in Canada in 2026, sourced from Health Canada and the Canada Revenue Agency.

What Is a Federal Excise Duty on Vaping Products?

An excise duty is a tax applied at the point of manufacture or import, embedded in the product price before it reaches retailers. Canada introduced a federal excise duty on vaping products in 2022 under amendments to the Excise Act, 2001.

Current Federal Vaping Excise Duty Rates

Per the Canada Revenue Agency's excise duty rates:

• $1.12 per 2 mL for the first 10 mL of vaping substance
• $1.12 per 10 mL for amounts over 10 mL

This adds a meaningful amount to the cost of every legal disposable vape and pod purchased in Canada. Manufacturers and importers pay this duty, and the cost is passed through to consumers.

The Coordinated Vaping Product Taxation System

Ontario participates in the Coordinated Vaping Product Taxation System, which effectively doubles the excise duty in participating provinces. Ontario vapers pay both the federal excise duty and a matching provincial share, in addition to Ontario's 13 percent HST on all purchases.

Province-Specific Excise Stamps (From January 2025)

Starting January 1, 2025, vaping products sold in Alberta, Manitoba, New Brunswick, Yukon, and PEI require province-specific excise stamps confirming the provincial duty has been paid. Products without the correct stamp are non-compliant. All products at Lush Vape carry all required federal and provincial excise stamps.

Why Tax-Paid Products Matter for Your Safety

• Tax-paid products from licensed retailers like Lush Vape are sourced from verified distributors, not counterfeits
• Excise revenue funds Health Canada's vaping compliance and enforcement program
• Grey-market, untaxed vape products have not been verified against Health Canada's nicotine and ingredient rules
• The price premium at a licensed retailer buys you product authenticity, regulatory compliance, and safety.

Questions about pricing or our product range? Contact Lush Vape at support@lushvape.ca or visit 317 Adelaide Street East, Toronto, Ontario. View our full product range at lushvape.ca.

Note: All tax information in this article reflects regulations in effect as of early 2026. Sources: Health Canada, Canada Revenue Agency, Government of Canada Budget Documentation. Tax rates and provincial participation are subject to change.