Home » Travel Experiences » How to get Tax Refund in USA as Tourist, Resident for Shopping ? FAQs Show
America is one of the best places to buy clothes, electronics, etc. You get the best value for the money spent. If you are a tourist from Asia or Europe, you will see prices much cheaper in the US, if you buy in outlet malls. Many are not aware that you may be able to get tax refunds as a tourist if you buy in some states like Texas in the US. In this article, we will cover all the details on how to get tax refunds, what are the requirements and conditions, and address some commonly asked FAQs. It totally depends on the state you do shopping in. If you shop in certain states like Texas, you are very likely to get a tax refund for your purchases in the US as a tourist. There is no published list by the US Govt. or US Tourism website that says that you get a Sales Tax Refund if you buy things in a certain state. It is not very clear if you would get a tax refund if you buy stuff online. You need to check with the online retailer on this as this totally depends on where you ship your goods and how the seller will charge you state tax. Also, even if you get a refund, there are way too many conditions to get a decent refund back to you. We will look at them in later sections. Tax Refund: State Sales Tax vs. Federal Sales Tax?In America, there is no Federal Sales Tax (national-level sales tax). When you buy goods in the US, the respective State or Local Government charges you State Sales Tax. The US Federal Govt., usually imposes customs duty or tariffs on the federal level and is not charged directly to the end consumer. The sales tax you pay for shopping in the US goes to the respective state govt. or local govt and does not go to the federal government. So, you usually get the State Sales Tax or Local Govt. Sales tax as a refund, if you are exporting the goods outside of the US. Below is a reference image from Taxfoundation.org that shows approximate State tax by the state for your reference. As you would usually get the State Tax as a refund, it is important for you to review the respective tax you paid for you to get an estimate. You can see that in the purchase receipt. There will be a section that clearly tells as Sales Tax. That is nothing but the State Sales Tax. Below is one of the sample purchases in Houston, Texas done by me for your reference. You can see the Sales Tax highlighted to get an idea. The US Government does not refund Sales Tax to VisitorsUS Customs and Border Protection has clarified on the CBP website that says, “The United States Government does not refund sales tax to foreign visitors. Sales tax charged in the United States is paid to individual states, not the Federal government …”. Check the screenshot of the same and US CBP Website. Hence, it is important to be clear that the Sales Tax refund completely depends on the US State, where you purchased your goods as a visitor and has nothing to do with the US Govt. or Federal Govt. We will look at some states and requirements to get a tax refund in the next section. Requirements to get Tax Refund in USA as Tourist or ResidentThe requirements to get a tax refund varies by the US State. Also, they are slightly tricky to get a decent refund, as they force you to purchase more at a single store. Most of the requirements or conditions are common for foreigners and US Citizens. The only difference is where they can claim a tax refund and when. Below are the general requirements for Tax Refund for Tourists
Tips for Tax Refund as a Tourist or Resident in the USOverall, a Tax refund is definitely a good thing, if you are doing a lot of shopping and taking it home. The only downside is that you have to give the original receipt of purchase. I did shopping for over $900 USD, but could not get a sizable tax refund as I did not know all of these facts and conditions. If you plan it ahead of time, you may be able to get a decent tax refund. Below are some tips
Common FAQsWe have addressed some of the commonly asked questions below. Is the Sales Tax Refund for tourists paid by Federal Govt or State Govt? IRS? The sales tax refunds, if given in a certain state, are paid by the respective State Govt. or local Govt. where you made the purchases. It is a state tax refund and not a Federal govt refund. IRS does not give any sales tax refunds. I am a US Resident on H1B, L1, F1, or other Visas, am I eligible for a Tax Refund? Yes, it does not matter. All visa types are eligible. Anyone traveling outside of the US is eligible for a tax refund. All the tax refund conditions described in the above article apply to everyone. I am a US Citizen, will I get a Tax Refund for shopping in the US? Travel Requirement? Yes, US Citizens are also eligible for a tax refund, provided they travel outside of the US within 30 days. You can only claim it at airports on the day of your departure. All the conditions and requirements are described in the above article Do I get a VAT or GST refund in the US as a Tourist or Resident? When you shop in America, you are not subject to Value Added Tax (VAT) or Goods and Services Tax (GST). The concept of VAT and GST exist in many countries, but in the US it is different and you are only subject to Sales Tax when you do shopping. What are your experiences with tax refunds as tourists? Did you get any tax refund as a Resident? Share your thoughts in the comments. Can Tourists claim tax back in New York?The United States Government does not refund sales tax to foreign visitors. Sales tax charged in the United States is paid to individual states, not the Federal government - the same way that Value Added Tax (VAT) is paid in many countries.
How do I get my tax refund at the airport?Refund Locations: Both US Citizens and non-US citizens can claim tax refunds at all major international airport terminals, they would have a Tax refund desk. Check the airport for the details on the terminal. Also, if you are a non-US citizen, then you can even claim tax refunds at certain mall locations in the state.
Can I get VAT refund at the airport?Customs will approve your form if everything is in order. To get paid, either take your approved form to the VAT refund desk at the airport, or send it to the retailer or refund provider with evidence of where you're travelling to.
Can I claim tax back on purchases in the US?Generally, no refund of sales tax is available if you took possession of the item from the vendor with a given state. In the United States, sales tax is imposed at the point of transfer of title or possession.
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