Alabama Implements New Excise Tax on Consumable Vapor Products Starting October 2026

Alabama’s new excise tax on consumable vapor products takes effect Oct. 1, 2026, imposing a 10-cent-per-milliliter tax on products sold wholesale or imported for use or sale in the state. Wholesalers and registered retailers must collect and remit the tax and obtain a Vapor Products Tax License from the Alabama Department of Revenue; businesses that fail to comply may face penalties. Registration is free through the My Alabama Taxes system, and tax returns and payments are due by the 20th of each month for the prior month’s activity. Businesses that file and pay on time may claim a 4.75% discount, and the products must also be reported on the Sales for Resale Report.
The tax was established by Alabama Act 2025-377.
After a business’s registration is approved, ALDOR will mail a letter with reporting requirements; the Vapor Products Tax License itself will arrive separately.
The 4.75% discount is unavailable if the business does not remit the full payment by the due date, even if it files its return on time.
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