The United States does not have a value-added tax (VAT) or goods and services tax (GST), so there is no VAT refund to claim when you visit or shop here

If you are a visitor from Europe, Canada, Australia, or another country with VAT, you may expect to reclaim the tax you paid on purchases before leaving the U.S. That system does not exist here. The U.S. uses a sales tax instead, which is collected at the point of sale and does not have a visitor refund mechanism. What you pay at checkout is what stays paid.

Sales tax rates vary by state and sometimes by city within a state. A shirt that costs $20 in Oregon (no sales tax) will cost more in New York (roughly 8.875% sales tax in most of the state). There is no way to recover the tax you paid, regardless of whether you are a resident or a visitor.

Key Takeaways

  • The U.S. collects sales tax at the register, not as a separate VAT, and does not offer refunds to international visitors.
  • Sales tax rates range from 0% (in states like Oregon and Montana) to over 10% in some cities, depending on where you shop.
  • If you are planning a shopping trip, factor the sales tax into your budget before you buy, since you cannot recover it later.
  • Some countries do offer VAT refunds to U.S. visitors; check with your home country's tax authority to see if you can reclaim tax paid abroad.

How U.S. sales tax differs from VAT

VAT is a tax on the value added at each stage of production and sale. A manufacturer pays VAT on materials, a distributor pays VAT on the goods they receive, and a retailer pays VAT on inventory. The end consumer pays the full VAT at the register, but visitors can often reclaim it by showing a receipt and passport at the airport before leaving the country.

U.S. sales tax works differently. It is collected only at the final sale to the consumer. There is no tax at earlier stages of production or distribution, and there is no mechanism to refund it to anyone—resident or visitor. The tax is simply part of the price you pay.

This is why a purchase in Paris might show a 20% VAT that you can reclaim, but the same item in New York will show only the local sales tax with no refund option. The systems are fundamentally different.

Sales tax rates by state and what you will actually pay

Sales tax in the U.S. ranges from 0% to roughly 10%, depending on your state and sometimes your city. Five states have no sales tax at all: Alaska, Delaware, Montana, New Hampshire, and Oregon. If you shop in these states, you pay no sales tax on most purchases.

Other states have a base rate that cities can add to. For example, Colorado has a state sales tax of 2.9%, but Denver adds 3.62%, bringing the total to roughly 6.5%. New York State charges 4%, but New York City adds 4.5%, for a total of 8.875% in most of Manhattan. California's base is 7.25%, but some counties add up to 2.25% more, reaching 10.25% or higher in certain areas.

Groceries, prescription medications, and some medical equipment are often exempt from sales tax in many states, though the rules vary. Clothing is taxed in most states but exempt in a few. Before a large purchase, ask the retailer what the final tax will be, since it is not always obvious from the sticker price.

What you can do instead of claiming a refund

Since you cannot reclaim sales tax paid in the U.S., your options are to budget for it or to shop in states with lower rates. If you are visiting multiple states, shopping in Oregon, Montana, or Delaware will save you the sales tax entirely on most items. Some visitors plan their shopping trips around this.

If you are buying high-value items like electronics or jewelry, the sales tax can be significant. A $1,000 laptop in New York will cost roughly $1,089 after tax, whereas the same laptop in Oregon costs exactly $1,000. For large purchases, the difference is worth considering.

You can also ask retailers whether they offer any discounts to international visitors. Some luxury retailers in major cities offer discounts that may offset part of the sales tax, though this is not common and is never may provide. Always ask before you buy.

If you are a U.S. resident buying abroad

If you are a U.S. citizen or resident traveling to another country, you may be able to reclaim VAT you paid there. Many European countries, Canada, and Australia offer VAT refunds to visitors. The process usually involves showing your passport and receipt at a refund desk or kiosk in the airport before you leave.

Each country has different rules about which stores participate, what minimum purchase amount triggers a refund, and how long you have to submit your claim. Check with your destination country's tax authority or tourism board before you travel. Some countries require you to have the goods with you (unused) when you claim the refund, while others allow you to mail in receipts after you return home.

Frequently Asked Questions

Can I get a sales tax refund if I did not use the items I bought?

No. The U.S. does not have a VAT refund system for any reason. Sales tax is final at the point of sale. If you want to return an item for a refund, that is a separate retailer policy and does not involve the sales tax—you get back the full amount you paid, including tax, or you do not get a refund at all.

Do I have to pay sales tax on online purchases shipped to the U.S.?

Yes, in most cases. As of 2021, online retailers must collect sales tax on purchases shipped to states where they have a physical presence or meet certain sales thresholds. The tax is added at checkout, and there is no refund mechanism for it.

What if I buy something and take it back to my home country?

You still cannot reclaim the U.S. sales tax. However, when you return to your home country, you may be able to reclaim VAT you paid there if you are a visitor. Check your country's rules before you travel.

Are there any exceptions to the no-refund rule?

No. The U.S. does not offer VAT or sales tax refunds to anyone—residents, visitors, businesses, or nonprofits. Some states exempt certain items (groceries, medicine) from sales tax entirely, but that is different from a refund.

Should I factor sales tax into my budget when shopping in the U.S.?

Yes. Always add the local sales tax rate to the sticker price before you buy. In most states, the tax is 6% to 9%, so a $100 item will actually cost $106 to $109. Knowing the rate ahead of time prevents surprises at checkout.