Nicotine Vapor Products Tax

Beginning October 1, 2026, your business must collect the new Nicotine Vapor Products Tax.

South Carolina lawmakers passed H.4303, which creates a new tax on all vapor products and electronic cigarettes that contain nicotine. If the Nicotine Vapor Products Tax applies to you, review your next steps.

The Nicotine Vapor Products Tax applies to vapor products, electronic cigarettes, and e-liquids that contain any form of consumable nicotine liquid.

The tax responsibility applies to the first person who purchases or sells these products.

Tax rate: $0.05 per milliliter of consumable nicotine liquid solution

Licensing requirements

A license to purchase, sell, and distribute manufactured Nicotine Vapor Products is free and required for the following persons before engaging in the sale of vapor products in South Carolina:

In-state wholesalers, distributors, and manufacturers first receiving products in South Carolina
Out-of-state wholesalers, distributors, and manufacturers selling and distributing to retailers or consumers in South Carolina
Retailers purchasing untaxed products from an out-of-state distributor or manufacturer
Retailers manufacturing and mixing e-liquid products (for example, house juice or house-made e-liquid) that contain consumable nicotine liquid for sale to consumers
Vending machine operators purchasing and selling untaxed products

Need help?

Phone: 803-896-1970

Email: TobaccoTax@dor.sc.gov

If the Nicotine Vapor Products Tax applies to you:

Register for an account on MyDORWAY. The application will be available September 24, 2026.
- If you already manage your tax accounts on MyDORWAY, log in, click the More tab, and select Business Tax Application.
- If you do not manage your tax accounts on MyDORWAY, get started at dor.sc.gov/register.
Begin collecting the Nicotine Vapor Products Tax starting October 1, 2026. Your first return, for the October period, is due November 20, 2026.
If you already have a Cigarette Tax Stamps or Other Tobacco Products account, we will issue you a new license after you register that includes your new Nicotine Vapor Products Tax account.

How to file and pay

Nicotine Vapor Products taxpayers must file and pay all taxes electronically.

Need an account? Sign up.
Have questions? See MyDORWAY help.

You must file your report by the 20th of the month following the end of the filing period. You must file each month even if you have no activity to report for the period.

Closing your Business Tax Account

You can close your account on MyDORWAY. Once you've logged in, click More, then select Close a Tax Account, located under the Access section
or
Check the box labeled Check this box if this business was permanently closed or sold on your return.

Mailing address:

South Carolina Department of Revenue | PO Box 125 | Columbia, SC 29214-0138