The short answer: most tourists cannot get a tax refund in the USA the way they can in Europe

The United States does not have a value-added tax (VAT) or goods and services tax that tourists can reclaim at the airport. Instead, the US uses a sales tax system that works differently. Sales tax is added at the register, varies by state and city, and is not refundable to visitors. If you buy something in New York and pay 8.875% sales tax, that money stays with the state — you do not get it back when you leave.

This is the biggest difference between shopping in the US and shopping in countries with VAT systems. A European visitor to France can reclaim VAT on purchases over a certain amount. A visitor to the US cannot. The sales tax you pay is final.

Key Takeaways

  • The USA does not refund sales tax to tourists at departure, unlike European VAT refund systems.
  • Sales tax rates vary by state and city, ranging from 0% to over 10%, and are set by local governments, not the federal government.
  • Some states have no sales tax at all, which is why tourists sometimes shop in those states to avoid the tax entirely.
  • If you are a foreign visitor, you cannot reclaim sales tax as a business expense or through any other mechanism.

Why the US does not offer tourist tax refunds

The US federal government does not collect a VAT. Instead, individual states and cities set their own sales tax rates and keep the revenue. Because there is no single national sales tax system, there is no national refund mechanism. Each state would have to create and run its own refund program, and most have chosen not to.

Sales tax is also treated as a final tax on the consumer, not a tax collected by the business on behalf of the government. The business keeps the sales tax it collects and sends it to the state. This is different from VAT systems, where the business acts as a collector and can reclaim the tax if goods are exported.

A few states have explored tourist refund programs in the past, but none currently operate one. The administrative cost of processing refunds at airports or borders would be high, and states have not found it worth the effort.

Sales tax rates vary widely by location

Because sales tax is set by state and local governments, the rate you pay depends entirely on where you shop. Some states have no sales tax at all — Oregon, Montana, New Hampshire, Delaware, and Alaska do not charge sales tax on most purchases. Other states charge between 4% and 7.25%. Cities and counties can add additional local sales tax on top of the state rate, pushing the total to 10% or higher in some places.

New York City charges 8.875% sales tax. Los Angeles charges 9.5%. Chicago charges 10.25%. If you are shopping in a state with no sales tax, you pay nothing. If you are shopping in a high-tax city, you pay significantly more. This is why some tourists plan their shopping around sales tax rates — buying in Oregon or New Hampshire means no sales tax at all.

The rate also depends on what you are buying. Most states exempt groceries, prescription medications, and some clothing from sales tax. Luxury items, electronics, and prepared food are usually taxed. The rules are different in every state, so what is tax-free in one place may be taxed in another.

What you can do to minimize sales tax as a tourist

Since you cannot get a refund, your only option is to reduce the tax you pay in the first place. The simplest approach is to shop in states with no sales tax. If you are visiting multiple states, doing your major shopping in Oregon, Montana, New Hampshire, Delaware, or Alaska means you pay no sales tax at all. Some tourists plan their trips partly around this.

You can also look for tax-free items. Groceries are not taxed in most states, so buying food at a supermarket costs less than buying the same items at a restaurant. Prescription medications are tax-free in all states. Some states exempt clothing up to a certain price point. If you are buying gifts or souvenirs, knowing which items are tax-exempt in that state can save you money.

Another option is to make large purchases before you travel and have them shipped to your home country. Some retailers will not charge sales tax if the item is shipped outside the US, though this depends on the store's policy and your state's laws. It is worth asking at the register.

How this differs from VAT refunds in other countries

In countries with VAT systems — most of Europe, Canada, Australia, and many others — tourists can reclaim the VAT they paid on purchases when they leave. The process usually involves getting a form from the store, having it stamped at customs, and submitting it for a refund at the airport or by mail. The refund is typically 15% to 25% of the purchase price, depending on the country's VAT rate.

The US sales tax system does not work this way. There is no form to fill out, no customs process, and no refund available. The sales tax you pay is the end of the transaction. This is one reason why shopping in the US can feel more expensive to international visitors — they are used to reclaiming VAT in their home countries and expect the same option here.

If you are a frequent international traveler, it is worth understanding which countries offer VAT refunds and which do not. The US does not. Canada does offer a refund on the Goods and Services Tax (GST) to visitors, but the process is separate from the US system and only applies to purchases made in Canada.

If you are a business owner or resident, not a tourist

If you are not a tourist but a business owner or resident, the rules are different. Businesses can reclaim sales tax on items they purchase for business use, and residents may be able to reclaim sales tax in certain situations depending on their state. However, these are not tourist refunds — they are part of the normal tax system for people who live or work in the US.

If you are a foreign business owner importing goods into the US, you may owe federal import duties and taxes, which are separate from sales tax. These are handled through US Customs and Border Protection, not through state sales tax systems. The rules for business imports are complex and vary by product type.

Frequently Asked Questions

Can I get a refund if I return something I bought?

Yes, but only from the store itself. If you return an item, the store will refund your money including the sales tax. However, this is a store refund, not a government refund. You have to return the item to the store where you bought it, usually within a set time period (often 30 days). The sales tax does not go back to the government — it goes back to you as part of your refund.

Do I have to pay sales tax if I buy something online and have it shipped to my home country?

It depends on the retailer's policy. Some online stores do not charge sales tax on items shipped outside the US. Others charge it anyway. The safest approach is to check the store's shipping policy before you buy, or contact customer service to ask whether sales tax will be charged on international shipments.

What if I am a resident of another country but I live in the US temporarily?

If you are living in the US, even temporarily, you are subject to sales tax like any other resident. You cannot claim a tourist refund. If you are here on a visa and plan to return to your home country, you still pay sales tax on purchases while you are here.

Are there any US states that offer tax refunds to tourists?

No. No US state currently operates a tourist sales tax refund program. Some states have considered it, but none have implemented one. If you see a website claiming to offer US sales tax refunds to tourists, it is not legitimate.

Can I reclaim sales tax as a business expense if I am a foreign business owner?

No. Sales tax is a consumer tax, not a business tax. Even if you are buying items for a business, you pay sales tax at the register and cannot reclaim it. If you are importing goods into the US for business purposes, you may owe federal import duties, which are different from sales tax and are handled separately through customs.