What items are tax free in the US?

Asked by: Eli Douglas MD  |  Last update: August 18, 2026
Score: 4.9/5 (36 votes)

In the U.S., tax-free items largely consist of necessities such as prescription medicines, medical devices, and basic grocery food items in most states, with exemptions varying by location. Additionally, clothing, school supplies, and energy-efficient products are frequently exempt during state-specific sales tax holidays.

What items are exempt from sales tax in the US?

Some items are exempt from sales and use tax, including:

  • Sales of certain food products for human consumption.
  • Sales to the U.S. Government.
  • Sales of prescription medicine and certain medical devices.
  • Sales of items paid for with EBT cards.

What is tax-free in the US?

Tax free can refer to tax free goods, services, or earnings. The most common tax free securities are municipal bonds, followed by some mutual funds that invest in tax-exempt securities. Items exempt from tax includes gifts, cash rebates on purchased goods, and child support payments.

Which items are exempt from tax?

Goods and services exempted from VAT are:

  • Non-fee related financial services.
  • Educational services provided by an approved educational institution.
  • Residential rental accommodation, and.
  • Public road and rail transport.

What is a tax-free item?

Tax Free is a consumption tax exemption system that applies to general stores in cities, such as department stores and shopping malls. On the other hand, Duty Free is specific to Duty Free shops located in restricted airport areas. This system exempts goods from customs duties, tobacco tax, and liquor tax, etc.

How to Avoid Taxes Legally in The US (Do This Now!)

20 related questions found

What are five goods on which no VAT is charged?

1. The current VAT (Value-Added Tax) rate in South Africa is 15% . 2. Five goods on which no VAT is charged (zero-rated or exempt) include: Brown bread Maize meal Dried beans Rice Fresh fruit and vegetables .

What things don't pay taxes?

Here are eight types of income that are free from federal taxes.

  • Child support. ...
  • Disaster relief assistance. ...
  • Financial gifts. ...
  • Inheritance. ...
  • Interest on municipal bonds. ...
  • Life insurance death benefits. ...
  • Profit on your home sale. ...
  • Roth IRA income.

Which US city has no sales tax?

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.

Is tax-free shopping worth it?

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.

Can tourists claim sales tax back in the USA?

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.

What items are exempted from GST?

Cereals, edible fruits and vegetables (not frozen or processed), edible roots and tubers, fish and meat (not packaged or processed), tender coconut, jaggery, tea leaves (not processed), coffee beans (not roasted), seeds, ginger, turmeric, betel leaves, papad, flour, curd, lassi, buttermilk, milk, and aquatic feeds, and ...

What US states have no tax on clothing?

States Without Sales Tax on Clothing

  • Massachusetts.
  • Minnesota.
  • New Jersey.
  • New York.
  • Pennsylvania.
  • Rhode Island.
  • Vermont.

How does Trump no tax on overtime?

No Tax on Overtime is a provision that was included in a larger tax reform bill that passed in July 2025. It allows certain workers to deduct up to $12,500 in qualified overtime compensation from their taxable income on their federal income tax return. Joint filers can deduct up to $25,000.

What to buy during tax-free?

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.

What are some GST free items?

GST-Free Items:

  • Fresh fruits and vegetables.
  • Raw meat, poultry, and seafood.
  • Eggs and milk.
  • Bread without filling or toppings.
  • Rice, pasta, and plain cereals.
  • Cooking oils.

Is there anything that is tax-free?

Other tax-free allowances:

The State Benefits Allowance: some (not all) state benefits are tax-free. The National Lottery Allowance: winnings from the National Lottery are tax-free.

Is McDonald's VAT free?

The price of menu items available for McDelivery also differs to the price of menu items available in McDonald's restaurants. All prices include VAT at the current UK rate.

What things are zero-rated for VAT?

What does it mean to be zero-rated for VAT?

  • Advertising services for charities.
  • Certain goods sold at charitable fundraising events.
  • Equipment for disabled people.
  • Freight transport to or from a place outside the UK.
  • Maternity pads and sanitary protection products.
  • Sale or long lease of a new dwelling.

Which food does not have VAT?

The current list of food items exempt from VAT include:

  • Brown bread.
  • Maize meal.
  • Rice.
  • Maize meal.
  • Vegetables.
  • Samp.
  • Fruit.
  • Mealie rice.