For US small business owners selling vaping products in Connecticut, understanding the state’s vape excise tax is essential. Compliance affects pricing, reporting, and legal obligations. Many businesses rely on tax filing services in the US to ensure accurate reporting, timely payments, and to avoid penalties. This guide breaks down Connecticut’s vape excise tax rates, registration requirements, and compliance obligations for small retailers in 2025.
Connecticut imposes an excise tax on electronic cigarette products, effective October 1, 2019:
Closed systems (prefilled, sealed cartridges not intended for refilling): $0.40 per milliliter of e-liquid.
Open systems (other e-cigarette products): 10% of the wholesale sales price.
The tax is applied at the first sale or use of these products in Connecticut by wholesalers.
Retail sales are also subject to the standard 6.35% state sales tax, which applies in addition to the excise tax.
All electronic cigarette dealers, manufacturers, and wholesalers must register with:
Connecticut Department of Consumer Protection (DCP)
Department of Revenue Services (DRS)
Registration fees:
Dealers: $400–$800 annually, depending on the number of locations.
Manufacturers: $200–$400 annually, depending on the number of locations.
Nonrefundable application fee: $75
Retailers and wholesalers are required to collect and remit the excise tax monthly through the DRS online portal.
Compliance also includes:
Maintaining accurate records of all taxable transactions.
Ensuring proper reporting to the state for audits.
Posting signage prohibiting sales to anyone under 21 years of age.
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Connecticut law prohibits the sale of vaping products to anyone under 21. Retailers must post a visible sign stating:
“The sale of electronic nicotine delivery systems or vapor products to persons under 21 is prohibited by law.”
Penalties for violations include:
$300 for a first offense
$750 for a second offense within 24 months
$1,000 for each subsequent offense
Additional sanctions can include the removal of vending machines for a year after repeated violations.
Connecticut’s vape excise tax affects product pricing, margins, and compliance planning. Small business retailers should consider:
Pricing Adjustments: Account for both excise and sales taxes to maintain profitability.
Inventory Planning: Manage purchases and cash flow to meet tax obligations.
Professional Tax Filing: Partner with tax filing services in the US to simplify compliance and reporting.
Compliance Training: Train staff on age restrictions, signage, and accurate recordkeeping.
For small business retailers in Connecticut, understanding the vape excise tax is critical for staying compliant and maintaining profitability. Closed systems are taxed at $0.40 per milliliter, while open systems are taxed at 10% of the wholesale price. Taxes are collected at the first sale, and retail sales are also subject to the 6.35% state sales tax. Proper registration with DCP and DRS, timely monthly remittance, accurate recordkeeping, and strict adherence to age restrictions are required.
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