Cost Of Vaping Vs Smoking Under New Tax Rules
The 2026 vape tax is set to drive up e-liquid prices in the UK from the 1st October. This has left many people wondering if vapers will revert to smoking as a result.
The UK Government has confirmed, however, that along with the new vape duty, tobacco duties will also be increased to ensure vaping remains a more cost-effective option.
In this blog, we will explore the facts we have so far to explain how the cost of traditional tobacco products will compare to vape liquids once the new tax systems are enforced, and answer the question "Will vaping still be cheaper than smoking after the new tax?"
Average Cost Of Vaping In 2025 Vs 2026
Currently, vaping products are only charged VAT, which is included in their base price. Under the 2026 vape duty rules, an additional £2.64 in tax will be added to that base price for a 10ml bottle (22p per ml duty + 20% of the total duty cost in VAT).
The example below is based on an average consumption rate of 10ml of e-liquid every two days, using a basic refillable starter kit with a pod lifespan of 14 days and our original £1 e-liquid range, over 12 months.
2025 Cost (No Vape Duty)
Device cost: £10.99 (eg. Argus Z2)
E-liquid cost: £182.50
Replacement pod cost: £89.91 (eg. Argus Pods)
Total annual cost: £275.40
2026 Cost (Inc Vape Duty)
Device cost: £10.99 (eg. Argus Z2)
E-liquid cost: £664.30
Replacement pod cost: £89.91 (eg. Argus Pods)
Total annual cost: £765.20
Average Cost Of Smoking In 2025 Vs 2026
As of November 2025, cigarette prices include the base price +VAT, +16.5% duty costs, and an additional charge of +2% on top of the current RPI (retail price index) for cigarettes.
In addition to these charges, from October 2026, a further £2.20 per 100 cigarettes or 50g of tobacco will also apply. This is to ensure smoking remains less cost-effective than vaping, despite the vape duty, to encourage smokers to use vapes to quit.
The example below is based on the current average UK cigarette consumption rate of 10 per day, and the average cost of a pack of 20 cigarettes in the UK (currently £16), over 12 months.
2025 Cost
10 cigarettes per day x 365 days = 3650 cigarettes smoked annually.
Average pack of 20 cigarettes = £16
Total annual cost: £2920
2026 Cost (Inc New Tobacco Duty)
10 cigarettes per day x 365 days = 3650 cigarettes smoked annually.
Average pack of 20 cigarettes + new duties & forecast RPI+2% = £17.48
Total annual cost: £3190.10
*Please Note
The 2026 costings are estimates, based on the September 2025 RPI forecast of 4.5% + confirmed tobacco duty increases.
RPI is based on inflation and can vary, so please use the above calculation as a guide only.
The price of rolling tobacco will be slightly lower than manufactured cigarettes, but will still be subject to significant duty increases.
Which Option Saves More After The New Tax Is Enforced?
Without a doubt, vaping will remain significantly cheaper than smoking, even after the new duties are applied.
At the current market prices, the average cost of smoking is over 10x the cost of vaping. Even after the new duties are brought in for both product sets, vaping will remain over 4x cheaper.
With that said, the average UK vaper should expect to pay approximately £500 more annually, which could add significant strain to those working to stricter budgets. If this applies to you, stocking up ahead of the 1st October 2026 may help soften that blow, at least in the short-mid term.
After this date, the best way to keep vaping costs to a minimum will be to choose high-quality but budget-conscious brands, like LiQuid. Even after the tax increases, our products will remain amongst the most competitively priced in the UK.
