Businesses that sell or distribute nicotine vapor products and heat-not-burn cigarettes in South Carolina can begin registering for new tax accounts later this month, according to the S.C. Department of Revenue.
Businesses responsible for South Carolina’s new Nicotine Vapor Products Tax can begin registering accounts on September 24, 2026, and must start collecting the tax on October 1, according to the S.C. Department of Revenue.
The tax stems from Act 234 (H. 4303), which also established a separate tax on heat-not-burn cigarettes, sometimes called HNB products, the agency said. Distributors can begin ordering HNB tax stamps on September 24 as well.
The Nicotine Vapor Products Tax covers vapor products, electronic cigarettes and e-liquids containing consumable nicotine liquid, according to the department. The rate is 5 cents per milliliter of nicotine liquid or other material depleted as a vapor product.
The filing and payment obligation falls to the first business that purchases or sells nicotine vapor products in the state, which can include retailers, wholesalers, distributors and manufacturers, the department said. A detailed list of responsible parties is available at dor.sc.gov/vape-tax.
Businesses must use the state’s MyDORWAY system to register, file returns and make payments. Those already using MyDORWAY can register by selecting Business Tax Application under the More tab, while new users can sign up at dor.sc.gov/register, according to the agency.
The first Nicotine Vapor Products Tax return, covering October 2026, is due November 20, 2026.
For HNB cigarettes, licensed South Carolina distributors can order tax stamps through MyDORWAY beginning September 24 by navigating to their Cigarette Tax Stamps account and selecting Order Cigarette Stamps, the department said. The HNB tax rate is 21.375 mills per cigarette, equal to 42.75 cents for a pack of 20, according to the agency.
Purchases and sales of HNB products must be reported on the Monthly Cigarette Tax Report on MyDORWAY, starting with the October return due November 20, 2026, the department said.
Based on a release from S.C. Dept. of Revenue.
