Short answer
In the mainstream Hanafi view, selling cigarettes and nicotine vapes is permissible but disliked, and the income is not haram. It is better to avoid it. Selling to children or breaking licensing law is haram, and vapes containing cannabis or other intoxicants may not be sold at all.
Since tobacco is not an intoxicant and has some lawful uses, its sale is valid and the earnings are lawful, though the trade is makruh because smoking itself is makruh tahrimi. Intoxicating substances such as cannabis products may not be sold. Selling against the law, such as to minors, is haram.
The four schools agree on this.
Explanation
The Hanafi rule is that anything with a lawful benefit may be bought and sold, and only what Allah has made haram in itself has a haram price. The Prophet ﷺ said that when Allah forbids people to consume something, He forbids its price. Alcohol and pork fall under that. Tobacco does not: smoking is makruh tahrimi in the Deobandi fatwa position because of its harm, not haram like wine. See Is smoking haram?
So the ruling for a shop:
- Cigarettes, cigars, nicotine vapes and pouches: permissible to sell, with dislike. The income is not haram, but a business built on something harmful lacks blessing, and many muftis advise reducing or dropping it.
- Selling to children or without a licence: haram, since it breaks the law and harms the young.
- Cannabis vapes, THC edibles and other intoxicants: haram to sell, even where legal, because every intoxicant is haram.
- Shisha cafes: the same as tobacco, with extra care about mixing and music.
Scholars who hold smoking to be haram outright, which includes many Arab fatwa bodies, say its sale is also haram. If you are choosing a business, it is better to stay away from tobacco. If it is a small part of a corner shop's sales, you are not earning haram, but consider phasing it out.
For alcohol, pork and lottery tickets, see Can a Muslim sell alcohol or pork?
The evidence
Quran, Surah Al-Maaida 5:2
يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا۟ لَا تُحِلُّوا۟ شَعَٰٓئِرَ ٱللَّهِ وَلَا ٱلشَّهْرَ ٱلْحَرَامَ وَلَا ٱلْهَدْىَ وَلَا ٱلْقَلَٰٓئِدَ وَلَآ ءَآمِّينَ ٱلْبَيْتَ ٱلْحَرَامَ يَبْتَغُونَ فَضْلًۭا مِّن رَّبِّهِمْ وَرِضْوَٰنًۭا ۚ وَإِذَا حَلَلْتُمْ فَٱصْطَادُوا۟ ۚ وَلَا يَجْرِمَنَّكُمْ شَنَـَٔانُ قَوْمٍ أَن صَدُّوكُمْ عَنِ ٱلْمَسْجِدِ ٱلْحَرَامِ أَن تَعْتَدُوا۟ ۘ وَتَعَاوَنُوا۟ عَلَى ٱلْبِرِّ وَٱلتَّقْوَىٰ ۖ وَلَا تَعَاوَنُوا۟ عَلَى ٱلْإِثْمِ وَٱلْعُدْوَٰنِ ۚ وَٱتَّقُوا۟ ٱللَّهَ ۖ إِنَّ ٱللَّهَ شَدِيدُ ٱلْعِقَابِ ﴿٢﴾
O you who have believed, do not violate the rites of Allah or [the sanctity of] the sacred month or [neglect the marking of] the sacrificial animals and garlanding [them] or [violate the safety of] those coming to the Sacred House seeking bounty from their Lord and [His] approval. But when you come out of ihram, then [you may] hunt. And do not let the hatred of a people for having obstructed you from al-Masjid al-Haram lead you to transgress. And cooperate in righteousness and piety, but do not cooperate in sin and aggression. And fear Allah; indeed, Allah is severe in penalty.
Selling harmful goods to people who will be harmed is discouraged.
Sunan Abi Dawud 3488
Graded sahih hadith... إن الله إذا حرم على قوم أكل شيء حرم عليهم ثمنه ...
"When Allah forbids a people to consume something, He forbids them its price."
Only what is haram in itself has a haram price.
Where the ruling is recorded
- Radd al-Muhtar (Ibn Abidin), Kitab al-Ashriba, on tobacco. Ibn Abidin's discussion of tobacco and its trade.
- Fatawa Mahmudiyya, Chapter on trade, on selling cigarettes. Permissible with dislike.
Checked by our team. For a more accurate answer to your own situation, consult a scholar. Quran translation by Sahih International. Hadith Arabic from the standard editions of the six books and the Muwatta, with gradings as recorded there; the English is our own rendering. Spotted a mistake? Tell us.