"Tax-free" in the U.S. depends on the type of tax; some states lack income tax (FL, TX, AK, etc.), while some items (groceries, medicine) are sales-tax exempt, and certain investments (Roth IRA) offer tax-free growth, but no state has zero taxes overall, with sales/property taxes filling the gaps. Key areas include no state income tax in 8 states, tax-free shopping weekends for specific goods, and tax-advantaged retirement accounts like Roth IRAs.
Some items are exempt from sales and use tax, including:
The United States Government does not refund sales tax to foreign visitors. The foreign country in which you paid the Value Added Tax (VAT) is responsible for refunding the tax. Some countries won't refund after the fact, so check with the Foreign Embassies & Consulates office of the country you visited.
Nine U.S. states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, though Washington does tax long-term capital gains, and New Hampshire is phasing out its interest/dividend tax. However, a lack of income tax doesn't mean lower overall taxes, as these states often rely on higher sales, property, or other specific taxes, like Florida's high homeowners' insurance or Texas's property taxes, to fund services, so consider the total tax burden, not just income tax.
Tax-free shopping is a privilege enjoyed by all residents of United States jurisdictions without sales taxes, but through so-called "remote" sales—including sales to visiting out-of-state residents, sales via catalog, and sales via Internet—customers in a sales taxed jurisdiction may also make purchases in sales tax- ...
The Australian Government's Tourist Refund Scheme (TRS) allows international travellers to claim a refund on the Goods and Services Tax (GST) and Wine Equalisation Tax (WET). The government pays this on eligible purchases you make in Australia and take offshore when you meet certain conditions.
If you're about to leave a country that has very high VAT (value-added tax), your savings could be significant. Sweden and Denmark, for example, charge 25%VAT on virtually all purchases, so picking up an item in a duty-free shop as you leave the country could result in real savings.
What Is Tax Free? Tax free refers to certain types of goods and financial securities (such as municipal bonds) that are not taxed. It also refers to earnings that are not taxed.
Portland, Oregon, and Anchorage, Alaska, have no state or local sales taxes. Richmond, Virginia has 5.3 percent state sales tax. Honolulu, Hawaii, has a low sales tax rate of 4.5 percent, but the tax applies broadly to goods and services when compared with sales tax from other locations.
The gift tax exclusion is $19,000 in 2025 and 2026. This annual exclusion is per gift recipient. You could give away the limit to several different people in a single year and still not have to file a gift tax return or pay the gift tax.
The Tourist Refund Scheme (TRS) allows Australians and overseas visitors to claim a refund (subject to certain conditions) of the goods and services tax (GST) and Wine Equalisation Tax (WET) paid on goods bought in Australian and then taken out of Australia.
VAT refunds let tourists get back Value Added Tax paid on goods they buy in countries like the EU, requiring forms from stores, proof of export (customs stamp at the airport before checking bags), and claiming the refund at airport desks, usually for unused items taken home, though the US doesn't offer this. The process involves getting an exemption form, keeping goods unused with tags on, getting customs to validate forms (often pre-security), and then processing the refund with operators like Global Blue, allowing for cash or credit card returns minus fees.
Therefore, if a non-resident visitor to the United States purchases any taxable items and takes possession of the goods at the retailer's location, sales tax is due and there is generally no refund of the sales tax paid simply because the goods will be removed from the United States.
Tips for Amazon Tax-Free Shopping
Complete the purchase during Tax-Free Week: Timing matters—only orders finalized within the tax-free window are eligible. Watch pricing per item: Even if your total cart is under $100, each item must individually be priced at $100 or less.
If you open the bag and use the item(s), you will be required pay taxes at customs. ・Prior to departure, please show the customs officer the tax free item(s) purchased as well as the "Record of Purchase of Consumption Tax-Exempt for Export Slip" attached to your passport.
The five key mistakes to avoid in a TFSA are over-contributing (and re-depositing withdrawals in the same year), treating it like a basic savings account (missing out on investment growth), failing to track your room (relying solely on CRA data), improperly moving funds (withdrawing and redepositing instead of transferring), and investing in non-qualified assets or high-risk trades (like day trading or certain foreign stocks that incur withholding tax).
Often, the focus is on back-to-school items like clothing, shoes, computers, and school supplies. Eligible products often have price caps—for instance, some states limit the price of clothing or footwear to $100 or less.
UAE. The UAE is effectively a tax free country for expats and is now one of the most popular tax haven countries worldwide. It offers a unique residency by investment opportunity with the following tax benefits: No personal income tax.
Because lower-income households spend a greater share of their income than higher-income households do, the burden of a retail sales tax is regressive when measured as a share of current income: the tax burden as a share of income is highest for low-income households and falls sharply as household income rises.