1. Minnesota — 95% Wholesale Tax
Minnesota's 95% wholesale tax is the highest vape tax in the nation. A product with a $10 wholesale price carries a $9.50 tax before it even reaches the retailer. Retailers typically mark up the tax-inclusive price, meaning a $15 disposable can retail for $28-30. Minnesota also taxes e-liquid at 95% wholesale, making refillable vaping expensive too. The state justifies this rate by equating vape tax to cigarette tax equivalents. Public health researchers have noted that Minnesota's tax may suppress smoking-to-vaping switching rates.
2. DC — 91% Retail Tax
DC's 91% retail tax is applied at the point of sale — the consumer sees it directly. A $15 disposable becomes $28.65 with tax. This is the most transparent tax structure (consumers see exactly what they pay) but also the most shocking at checkout. DC also bans most flavored vape products, compounding the cost impact. See our state flavor ban guide for the regulatory overlap.
3. Vermont — 92% Wholesale Tax
Vermont's 92% wholesale tax is nearly identical to Minnesota's in effect. A $10 wholesale product carries $9.20 in tax. Vermont's small market means fewer retailers absorb the cost, leading to higher retail markups. Vermont also has a flavor ban, making it one of the most restrictive states for vaping.
4. Washington — 60% Wholesale + $0.095/mL Hybrid
Washington's hybrid tax is particularly punishing for disposables. A 5mL disposable with a $10 wholesale price carries $6.00 (ad valorem) + $0.48 (volume) = $6.48 in tax — 43% of the pre-tax price. Washington also bans flavored vapes, creating a double burden. The state has seen significant cross-border purchasing from Oregon (65% retail tax, but no volume component).
5. California — 56.25% Wholesale Tax
California's 56.25% wholesale tax adds $5.63 to a $10 wholesale product. Combined with the state's flavor ban (AB 762, covered in our CA ban guide), California has one of the most restrictive vaping environments. The tax applies to all components — devices, pods, and e-liquid — meaning a full refillable setup (device $30 + e-liquid $20) carries $8.44 in tax before sales tax.
