Canada Vaping Tax 2024‑2025: Federal & Province Coordinated Excise Duty Explained

In April 2024, the Canadian government confirmed significant updates to the vaping excise duty framework. With the federal excise duty already in place since October 1, 2022, provinces are now joining a coordinated vaping tax system, ensuring unified application of vaping duty rates across Canada beginning July 1, 2024, and full synchronization by January 1, 2025.

The federal vaping excise duty Canada mandates that all vaping liquids and solids incur excise taxes at the manufacturing level. Effective July 1, 2024, the vaping duty rates increased to $1.12 per 2 mL (or per 2 g solid) for the first 10 mL/g, and $1.12 per 10 mL (or per 10 g) thereafter, This standardized rate replaces the former $1 per unit and reflects 2024 federal budget changes.

To harmonize tax collection, the coordinated vaping duty system applies an additional vaping duty identical to the federal rate in participating provinces. Combined excise duty thus reaches $2.24 per 2 mL for the first 10 mL, and $2.24 per 10 mL thereafter.

This ensures consistent provincial and federal enforcement, effective July 1, 2024, in provinces that signed bilateral agreements. As of mid‑2025, specified vaping jurisdictions include Ontario, Quebec, Alberta, Manitoba, New Brunswick, PEI, Yukon, Northwest Territories and Nunavut.

Before federal coordination, several provinces implemented their own vaping taxes:

• British Columbia applied a 20% HST on vaping products starting January 2020

• Nova Scotia imposed $0.50 per mL liquid plus 20% on devices from September 2020

• Newfoundland & Labrador and Saskatchewan introduced 20% sales tax in early and mid‑2021 respectively.
  These early provincial measures prompted the later move toward a nationally unified excise duty structure.

Conclusion 

The Canada vaping tax system 2024‑2025 is designed to unify excise duty across federal and provincial levels, streamline compliance, and reinforce public health objectives. For manufacturers and importers, it’s crucial to understand the new vaping excise duty rates, the coordinated duty implications, and reporting obligations under CRA Notice EDN‑95. Stay informed visit the Canada Revenue Agency website for the latest guidance and stamping rules.