Vape Tax by State Explained: See How Much Your State Adds

If you’ve ever wondered why the same vape costs more in one state than another, the answer usually comes down to taxes.

Every state decides its own rules, and those choices affect how much you pay at the counter. Some states make vaping pricier with high tax rates, while others skip taxing it altogether.

Knowing how these taxes work helps you plan smarter and avoid surprises when shopping.

What Is a Vape Tax?

A vape tax is a government charge on vaping products. It works a lot like cigarette taxes, but is applied differently depending on the product. The idea behind these taxes is simple:

• Public health: discourage use by raising the price.
• Revenue: bring in money for state programs.
• Regulation: keep a better track of who’s selling and buying.

Unlike a standard sales tax, which is added at the register, vape taxes can take a few different forms. Some states charge a percentage of the retail price, while others tax each milliliter of e-liquid or per device. This creates big differences in what you’ll pay across the country.

A nicotine tax can also overlap with vaping taxes. For example, some states apply extra charges to products containing nicotine while taxing non-nicotine liquids differently or not at all.

How States Tax Vaping Products

Most states use one of the two most common ways of levying a vaping tax:

• Percentage of price: A percentage is added to the wholesale or retail price. Example: 30% of the price of the product.
• Per milliliter (mL): A flat fee for each milliliter of liquid. Example: $0.10 per mL.

It is also worth considering the type of product. States change how they treat open systems (refillable) vs closed systems (pod and disposables). For example:

• Open systems may be taxed per milliliter.
• Closed systems may be taxed per item or at a higher percentage.

This is another complication with trying to compare costs if you switch between types of vapes.

Vape Tax by State (Comprehensive Table)

Here’s a simplified look at state vape tax rates confirmed by ComplyIQ’s June 2025 update. Rates can change, so always check your state’s current rules.

Last updated: June 2025

Comparing Vape Tax Rates Across States

Vape tax rates vary significantly by state, as we can see in the vape tax by state table:

• No vaping tax: Alabama, Florida, Arizona, Idaho, Michigan, and a slew of other states. You will only pay sales taxes in these states.
• With the highest nicotine tax rates. Minnesota (95%), Vermont (92%), and the District of Columbia (71%) are among a few states that are passing steep vape excise tax costs to their citizens.
• Some states show unique tax structures, including Connecticut, Kentucky, and New Hampshire, which utilize a mixed percentage and per-milliliter system. This can create varied pricing between a disposable vape and a refillable vape system.
• Local taxes: Some counties and cities, including Chicago and New York City, add their own tax on top of state-based regulations. This means your vape pricing by location can differ, even in the same state!

How Vape Taxes Are Determined

The methods used to calculate e-liquid tax rates can greatly influence the final cost. Knowing the ways they are calculated will help you recognize why a vape costs what it does, depending on where you purchase it.

Now let’s dig into the two ways these calculations are made:

• Percentage-based taxes: These are calculated on the wholesale or retail price of the product. If your state hits the retailer with a 40% tax based on the wholesale price of $20 for the vape kit and the retailer sells it for $40, we can see that the tax is applied first and increases the price for the consumer. Higher price items are more affected because the item tax is often applied to a larger variable to take a percentage of.
• Per mL taxes: If your state charges a tax on e-liquid that is determined per mL, the way the tax is calculated is not price-related. For example, if your state has a $0.10/mL and you buy a 30 mL bottle. A state tax will add an extra $3 to your retail purchase no matter what the cost of the liquid itself is. This way of taxation creates a situation where smaller bottles of premium liquids are problematic, as their cost to vaporize (or per-use cost) is not favorable compared to larger bottles of liquid because it is divided by less product.
• Some states also utilize a mixed approach: For example, some states add a percentage-based tax to open-system devices and also a per-mL tax to prefilled pods or disposables. This means one customer could buy a refillable bottle, while the other customer could buy a closed pod; both with the same amount of liquid in it and yet pay totally different taxes.

Here is what this looks like in reality:

• A $10 disposable pod with 2 mL of e-liquid taxed as $0.40 per mL would effectively add $0.80 to the tax burden or almost 10% of the overall price.
• A $40 refillable device with a 60 mL bottle taxed at 40% wholesale might add $16 to the taxable cost up front, but the per puff cost is lower eventually.

For consumers, this means:

• Small bottles, especially nic salts, identified with ‘per mL’ states, can feel overly expensive.
• High-end devices that take the hit in “percent-based” states, since tax increases with the base cost
• Bulk purchasing reduces the impact of “per mL” systems, noting that the larger bottles will spread out the tax over a larger amount of liquid.

Tax Avoidance Risk and Legal Consequences

While it may be tempting to figure out ways around vape taxes, particularly if you live in a high-tax “state,” there are risks with tax avoidance that usually outweigh the gain of avoiding taxes.

• Consumer risks: Ordering products out of state or from non-official websites may result in some sort of penalties, as they may not meet all of the vape law compliance. Packages could be seized and in some cases, buyers may be penalised for tax evasion.
• Business risk: Retailers that underreport sales or do not remit tax face greater risks. Possible consequences are high fines, revocation of the license, and criminal charges if regulators think it was deliberately intended as fraud.
• Black market issues: Sometimes, the high taxes create unregulated sales and indirectly fuel the illegal trade. The e-liquids and disposable vapes being sold on the black market typically do not go through safety testing, disclosure of the ingredients, and utilize things that expose people to harmful substances.

In short words, avoiding taxes may cost you a lot more in the future, financially and otherwise. The clearly better option will always be to go to a licensed shop that follows the guidelines for vaping regulation by each state.

You know your product is compliant, safer and the additional quality controls ensure you’re getting a better product.

The local vape tax rates will provide significant differences to the overall costs that you will incur.

Taking the example of some states like Georgia and Colorado, where the costs of vapes and e-juice are much closer tothe  base cost, compared to states like Minnesota and Vermont, where taxes can increase the final price to almost double the price, a hybrid system creates further complications.

By understanding how your state treats vape taxes, you can determine how to budget for and what size of bottle or device you need to get, and then be aware of the price differences if you travel.

Knowing this information allows you to manage your spending and reduce the chances of being surprised at the register.

Frequently Asked Questions

What Is a Vape Tax?

It’s a special tax on vaping products, separate from regular sales tax, designed to raise revenue and regulate the market.

How Does Vape Tax Vary by State?

Some states charge a percentage of the price, others charge per milliliter, and a few use hybrid systems.

Which States Have No Vape Tax?

Alabama, Florida, Arizona, Idaho, Michigan, and several others.

Do All States Tax Nicotine and Non-Nicotine Vapes the Same Way?

Not always. Some states apply different rates or exclude non-nicotine products.

In What State Are Vapes the Cheapest?

Typically, states with no vaping tax, though local sales tax still applies.

How Do Vape Taxes Affect Retail Prices?

They raise the cost at checkout, especially in states with high rates like Minnesota or Vermont.

Can I Avoid Vape Taxes by Buying Online?

Most online shops still collect the correct state tax at checkout. Avoiding it can create legal issues.

What Is the Difference Between a Nicotine Tax and a Vaping Tax?

A nicotine tax is levied at the nicotine content itself, whereas a vaping tax is on devices, e-liquids or both.

References

• (n.d.). Vape & E-Liquid State Excise Tax for 2025 — current vape taxes by state.
• (n.d.). 2025 State Tax Guide on Nicotine Products — state-by-state vapor product tax guide
• Centers for Disease Control and Prevention. (n.d.). E-Cigarette Tax — STATE System Fact Sheet.
• Token of Trust. (2025). State Compliance Guide: vape & nicotine compliance updates by state
• (2022). Vape tax by state: 2023 e-cigarette tax guide
• Public Health Law Center. (n.d.). U.S. E-Cigarette Regulations — 50-State Review.