A very frequent question we get here in the VPD comments is about the US Sales Tax and if there is any kind of refund or refund for the tax left on US purchases, especially in Orlando and Miami.
This type of program, known as Tax Free or Tax Return , is very famous in Europe and in some Latin American countries, such as Argentina and Mexico, and in it, all the tax left on purchases is returned when the tourist leave the country.
Tax Free Desk at European Airport. Over there, this is a much more common policy.
For those who want the short answer : Generally speaking, in the US, there is no federal tourist tax refund program, as is known in other countries. Especially in the state of Florida, where Brazilians are concentrated to do their shopping. There, it is common to find two cases that I explain throughout the post: some states that offer tax refunds and others that do not charge tax on purchases.
To delve a little deeper, let’s start by understanding what this tax is.
What is Sales Tax in the USA
Often called a “tax”, the Sales Tax on US tax receipts is actually the goods and services tax levied by each state in the country. We could say that the US Sales Tax is equivalent to our ICMS here in Brazil.
The difference is that the ICMS here in Brazil is not on our face and stamped on each tax coupon. Unfortunately! There in the USA, each commercial establishment is obliged to separate in the note what is the value of the product and how much is paid in tax. So the population has much more control (and participation) in the amount of money the government collects on each product or service.
The Sales Tax is not a federal tax in the US, so each state is responsible for setting the rates and collecting them. In the most populous states, such as California and New York, the Sales Tax can be as high as 10% depending on the type of product or service. In Florida, these values vary between 6% and 7.5% , but on most purchases we make, such as food, clothes, electronics, and items you find in a regular mall, the Sales Tax is 6%.
Walmart receipt for purchase made in the state of Georgia. The Sales Tax comes separately at the end.
In some less populated states, which even face high unemployment rates and little economic activity, the governments decided to abolish this tax on the sale of products , to make money spin and heat up the economy (another difference from Brazil, right? the tax only increases). They are: Alaska , Delaware , Montana , New Hampshire and Oregon .
The cool thing, if you have the opportunity to travel to one of these states, is that the price you see on the shelf is the same price you see at the checkout. In Florida, this will never be the case, as the sales tax is added to the cash register.
Where in the US can I find Tax Free?
Apart from the states where Sales Tax is not levied and which I mentioned above, the states of Louisiana and Texas have their state Tax Free programs. In the latter, the government refunds up to 65% of the amount that a tourist pays in taxes, but the process that is done at the airport is a bit bureaucratic and, in general, they send you a check here in Brazil for you to cash later – a task that it’s not super easy.
And Orlando? And Miami? I don’t get anything back?
Unfortunately not ! That 6% that appears at the end of your notes stays with the state and cannot be refunded at the end of your trip. This is because Florida’s economy is heavily dependent on tourism, as the state has some of the world’s top travel destinations.
So dear reader, don’t focus on the money that was left with the government, and be happy that even with this tax, your purchases must have been very worthwhile.
I hope this post has helped you to clarify some doubts about US taxes. If you have any more questions, be sure to post them in the comments box below this post.
