Monday, Sept. 28, 2026

MONTGOMERY - A new state excise tax on consumable vapor products will take effect Oct. 1, 2026, under Act 2025-377. The act levies a state excise tax of 10 cents per milliliter on all consumable vapor products sold at wholesale or imported into Alabama for use, consumption or retail sale.

Wholesalers and registered retailers that sell consumable vapor products are responsible for collecting and remitting the tax and must obtain a Vapor Products Tax License from the Alabama Department of Revenue. Businesses that sell consumable vapor products without the required license and appropriate tax applied may be subject to penalties.

Beginning Oct. 1, businesses can register for a Vapor Products Tax License through My Alabama Taxes at myalabamataxes.alabama.gov. There is no fee to register. ALDOR's recent vapor products tax notice offers more information on the registration process.

After a registration is approved, ALDOR will mail to the business a registration letter containing reporting requirements. The Vapor Products Tax License will be mailed separately.

The Vapor Products Tax must be reported and paid by the 20th day of each month for the preceding calendar month's activity. A 4.75% discount is available for returns and payments filed and paid on time. The discount will not be allowed if full payment is not remitted by the due date.

Consumable vapor products also must be included on the Sales for Resale Report, commonly known as the WRAP report.

For more information about Alabama taxes and ALDOR services, visit revenue.alabama.gov.

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Tax Policy and Governmental Affairs Division
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