With the popularity of vaping increasing steadily over the years, the government of Canada along with select provinces have decided to impose excise taxes on vape liquids. These taxes aim to increase the cost of vape juice and help deter young canadians from picking up the habit of vaping.
Many people are on the fence about whether this will work as intended. Some say it’s a tax grab for the government just to get a piece of the pie, so to speak. Others say driving the prices higher will deter young Canadians from starting in the first place. Time will tell what works and what does not as Canadians brace for another increase, with more to come in the future.
How will this all work?
July 1st is when the government and select provinces will set in motion their excise taxes on vape liquids. These taxes will not be applied to hardware of any kind unless that hardware comes with liquid, also known as vape juice. The excise taxes will comprise both federal and provincial portions, with the federal portion being applied to everyone across Canada and the provincial portion only applying to select provinces.
Federal Excise Vaping Tax
Prior to July 1st 2024, there was already an initial federal excise tax in place on vape liquids sold throughout Canada. The formula for this initial excise tax was $5.00 for the first 10ml of liquid and then $2 for each additional ml in the product. So a 30mL bottles would incur a $7.00 federal excise tax and a 60mL would incurr a $10.00 excise tax.
The Revised Federal Excise Tax of 2024
On July 1st 2024, the new federal excise tax on vaping liquid will be simple and is a percentage increase on the existing excise tax. So for example a 30ml which normally incurred a $7.00 excise tax, would have an increase of 12% for a total of $7.84, whereas a 60mL bottle would incur an additional $1.20 (12%) on top of the original $10.00 for a total of $11.20.
Federal Vaping Excise Tax 2024 Made Simple
So, if you live in Canada and purchase vape juice, you will pay an additional 12% of the original federal excise tax on top of the original federal excise tax itself.
| Tiers | Federal Tax (Prior to July 2024) | Federal Tax +12% Increase (July 1st, 2024) |
|---|---|---|
| 0.1mL to 2mL | $1 | $1.12 |
| 2.1mL to 4mL | $2 | $2.24 |
| 4.1mL to 6mL | $3 | $3.36 |
| 6.1mL to 8mL | $4 | $4.48 |
| 8.1mL to 10mL | $5 | $5.60 |
| 10.1mL to 20mL | $6 | $6.72 |
| 20.1mL to 30mL | $7 | $7.84 |
| 30.1mL to 40mL | $8 | $8.96 |
| 40.1mL to 50mL | $9 | $10.08 |
| 50.1mL to 60mL | $10 | $11.20 |
Provincial Excise Vaping Tax
Prior to July 1st 2024, there was no provincial excise tax on vape liquids but after this date that all changes for specifc provinces in Canada which include
- Ontario
- Quebec
- Northwest Territories
- Nunavut
As of July 1st 2024, the above mentioned provinces will incur the same excise tax charged federally on vape juice or devices that contain vape juice in Canada.
- Alberta
- Manitoba
- New Brunswick
- Prince Edward Island
- Yukon
As of Jan 1st 2025, the above mentioned provinces will also incur the same excise tax charged federally on vape juice or devices that contain vape juice in Canada.
Provincial Vaping Excise Tax 2024-2025 Made Simple
So, if you live in Canada and reside in Ontario, Quebec, Northwest Territories,Nunavut. Alberta, Manitoba, New Brunswick, Prince Edward Island and Yukon or have vape juice or hardware containing vape juice shipped to these provinces, you will pay the Federal Excise tax mentioned in the table above + the same amount as provincial excise tax.
For example if you lived in Ontario and purchased a 30mL bottle of vape juice, you would pay the federal amount of $7.84 + $7.84 for the provincial amount for a total excise tax of $15.68.
If you purchases a 60mL bottle of vape juice and lived in Nunavut, you would pay the federal excise tax of $11.20 + the provincial excise tax of $11.20 for a total of $22.40.
Basically whatever the federal amount is, you can double it if you live in these specific provinces.
| Tiers | Federal Tax +12% Increase (July 1st, 2024) | Provincial Tax (ON, QC, NU, NWT) | TOTAL Fed. + Prov. Tax (July 1st, 2024) |
|---|---|---|---|
| 0.1mL to 2mL | $1.12 | $1.12 | $2.24 |
| 2.1mL to 4mL | $2.24 | $2.24 | $4.48 |
| 4.1mL to 6mL | $3.36 | $3.36 | $6.72 |
| 6.1mL to 8mL | $4.48 | $4.48 | $8.96 |
| 8.1mL to 10mL | $5.60 | $5.60 | $11.20 |
| 10.1mL to 20mL | $6.72 | $6.72 | $13.44 |
| 20.1mL to 30mL | $7.84 | $7.84 | $15.68 |
| 30.1mL to 40mL | $8.96 | $8.96 | $17.92 |
| 40.1mL to 50mL | $10.08 | $10.08 | $20.16 |
| 50.1mL to 60mL | $11.20 | $11.20 | $22.40 |
Conclusion
It was inevitable that this would happen as the popularity of vaping grew and youth became aware. Many youths have picked up the habit of vaping, and the government is trying to curtail this. By adding these excise taxes, they think this will deter youth from vaping. The money brought in through these taxes can be put to good use in educating kids about the dangers of smoking and vaping. Let’s just hope the government’s intentions are well thought out and bring positive change.
All in all, even with the raise in federal excise tax and the implentation of the provincial excise tax for some provinces, vaping is still a much healthier alternative and substantially cheaper compared to tobacco smoking.
Look forward to 2025-2026 and beyond when more provinces may adopt the provincial excise tax, Thanks for reading. We appreciate your time.
