Tax Refund Tourist USA information

How to get Tax Refund in USA as Tourist, Resident for Shopping ? FAQs

In Travel Experiences by KumarUpdated : 20 Comments

America is one of the best places to buy clothes, electronics, etc. You get the best value for your money spent. As a tourist from Asia, if you compare, buying a Ralph Lauren Polo shirt at an outlet mall in US with decent 30% discount vs. buying the same shirt in Asia, it is literally twice the price or more. Recently, I went on shopping spree on the day of my return in Houston, TX. I got to know at the mall that I may get Tax Refund. I was curious but was not sure as I never knew the process. I will share all the details on how to get tax refunds, what are the requirements and conditions, and address some commonly asked FAQs.

Do you get Tax Refund for Shopping in US at Malls, Outlet Malls,  or Online Stores  ?

Yes, you do get tax refund for your purchases in US, if you are traveling outside of US. But, there are way too many conditions to get a decent refund back to you.

What Tax do you get as Refund ?  Does the Federal Govt pay you ?

You usually get Sales Tax as refund, if you are exporting the goods outside of US. The sales tax on shopping in US goes to the respective states. It does not go to the federal government and they do not give you the refund.  Below is an image that shows approximate State tax by state for your reference.

Sales Tax Rates in US for Refund as Tourist

 What Tax Refund do you get for shopping in US as Tourist or Resident ?

Depending on the state you purchase in, you will get the State Tax back to you as refund. See the sample receipt on taxes that are charged in Texas.Sales Tax Receipt for Refund in US as Tourist Sample

Is the Tax Refund paid by US Federal Govt or IRS ?

No, the tax refunds are paid by the respective states that you make your purchases in. So, it is a state tax refund to be more specific.

I am a US Resident on H1B, L1, F1, or other Visas, am I eligible for Tax Refund ?

Yes, it does not matter. All visa types are eligible.  Anyone traveling outside of US are eligible for tax refund. All the below conditions described apply to you.

I am a US Citizen, will I get Tax Refund for shopping in US ?

Yes, US Citizens are also eligible for tax refund, provided they travel outside of US within 30 days. You can only claim it at airports on the day of your departure. All the below conditions described apply to you.

Do I get VAT or GST refund in US as a Tourist or Resident ?

When you shop in America, you are not subject to Value Added Tax (VAT) or Goods and Services Tax (GST). The concept of VAT and GST exist in many countries by US is different and you are only subject to Sales Tax, when you do shopping as tourist

What are the Requirements or Conditions to get Tax Refund in USA as Tourist or Resident ?

The requirements to get tax refund are slightly tricky to get a decent refund, as they force you to purchase more at a single store. Most of the requirements or conditions are common for foreigners and US Citizens, only difference is where they can claim tax refund and when. Below are the requirements.

  • Minimum Amount : Depending on the state, there is a minimum amount of tax you need to have per receipt or purchase from a brand store or outlet store. In Texas, you need to have a minimum of $12 tax per receipt or combined receipts from the same brand stores. Technically, in Texas with 8.25%  sales tax, you need to purchase for at least for $150 USD in a single store or brand outlet to be eligible for the refund.
  • Original Receipts : You need to submit original receipts at the Tax refund counter. They do not accept duplicate, photo copy or reprint sales receipts. You need to submit the first original receipt that is printed. No digital or e-mail receipts are accepted, unless it is an online purchase item from a brand store and if the receipt has delivery address of the goods in that state. You need the packaging slip of delivery for online purchases.
  • 30 days : You need to have the purchase done within 30 days from the day of your international travel or departure date from US.
  • International Travel : You get refund only, if you are traveling outside of US and the items you are buying will be staying outside of US. Technically exporting it to other country, that’s why they ask for the original receipt and take it for refund. It means that the sale is final in US and there are no returns for your same goods you bought here in US.
  • Physical Inspection : You need to show your item purchased for physical inspection and it has to be in new and unused condition with all the tags.
  • Passport , I-94 / Entry Stamp : You need to show your Visa/ Passport, and I-94 with entry stamp on it, if holding foreign passport.
  • Departure Information / Flight Tickets : You need to show your international departure info or flight ticket itinerary and for US citizens, you need to show the boarding pass to get tax refund.
  • Item should Depart US & State : The items purchased must be taken with you and should depart the state you purchased in and USA as well.
  • Food or Services : No refund for food or services purchased.
  • Participating Stores : You get Tax Refund only if you purchase goods from the participating stores. They claim that it is a big list of 6,500+ stores…but watch out for the brands. I purchased from few brands, that were not eligible for refund such as Abercrombie & Fitch.
  • Processing Fee : There is a processing fee for your tax and it is crazy. Below are the options
    • Instant Cash : If you want instant cash it is 50% processing fee for tax refund.
    • Check / PayPal : If you want a check or can get refund to PayPal, then it is 35% of the tax refund. Also, you will also be charged $4 USD for every single store or brand purchases.
  • Refund Locations : Both US Citizens and non-US citizens can claim tax refund at all major international airport terminals, they would have a Tax refund desk. Check airport for the details on the terminal. Also, if you are a non-US citizen, then you can even claim tax refund at certain mall locations in the state. Check the state website for the exact locations in a   For Texas, here are the refund locations.
  • Tax Refund Policies : Tax refund policies can vary by state and there is no standard sales tax percentage set as well. You should check the Sales Tax and Tax Refund policies in that respective state before you shop to ensure you get tax refund. For instance, if you shop in Delaware, there is no sales tax, so no refund.

Tips for Tax Refund as Tourist or Resident in US:

Overall, Tax refund is definitely a good thing, if you are doing a lot of shopping and taking it home. The only downside is that you have to give the original receipt of purchase. I bought for over $900 USD, but could not get a sizable tax refund as I did not know all of these facts and conditions. If you plan it ahead of time, you maybe able to get a decent tax refund. Below are some tips

  • Duplicate Receipt / re-prints : When you buy your item, request for duplicate receipt or re-print of receipt. This can be used by you for warranty at your home country or international location.
  • Take a Photo of Original Receipt : Take a picture of the original receipt and if requested by the warranty location outside of US, then you can use the photo and duplicate receipt.
  • Buy maximum at One Brand Store : Make sure you pick few brands and do shopping in those brands, so that you meet the minimum requirement of Tax refund. If not, you will not be eligible for tax refund as you will miss out on the minimum. I did not get anything as I bought in multiple brands and they were less than $150 purchase per store, so I was not meeting the minimum amount of tax refund in Texas.
  • Register for Warranty : If you are buying an electronic item and if there is an option to register online, register for warranty, when you have the original receipt.

What are your experiences with Tax Refund as Tourist ? Did you get any tax refund as Resident  ?

Image Credit : https://files.taxfoundation.org/20180212171639/LOST2018.png

   

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Comments ( 20 )

  1. vas

    I am an Australian visiting US. I have placed an online order with Lenova for a laptop to be delivered in LA, which I will collect. I will be leaving to Australia from New York on the 30th of December.
    Can I get a tax refund for this from the NY airport and what is the process. Any info will help. Thanks

    1. administrator
      Kumar

      vas,
      You need to check with New York Airport. They had it in Houston Airport, not sure about NY. Write to them or search online. Do update here for community benefit after you research.

  2. Allan

    Hi! I’m from Costa Rica, I’m planning a trip to Florida by the end of November, and I want to buy many goods to export them to my origin country.

    Do I have to do something on every shop when buying? Show my passport? Is there a specific office in the airport for ask this refund? Thanks!

  3. Jorge

    I’m form Mexico, I bought a laptop in bestbuy online to pick up at the physical store, I went to the store from Monterrey, Mexico to McAllen, US in car, in other words, I didn’t went to the airport so how would I recover the taxes of the laptop? I’m in Mexico already and I picked up the laptop 3 days ago.

    1. administrator
      Kumar

      Jorge,
      It is probably not possible now as you have already exited the country. They need to see the product and receipt before you exit the country.

  4. Konstantin

    I’m citizen of EU. I purchased some items on US internet pages while being in US. Unfortunately, I didn’t get any receipts or invoices with my delivered goods. Is there a way to get Tax Refund when I leave US?

    1. administrator
      Kumar

      Konstantin,
      You need receipts or some purchase proof to claim the same in airport. If you have no proof, then you cannot claim anything…

  5. Luis

    I’m a Mexican citizen and resident, who plans to by a Mac at San Antonio. Yet, I need to use it during my 4-day visit. Does it mean I won’t get a refund, even if I show the case, ticket and wrapping? Best regards!

    1. administrator
      Kumar

      Luis,
      In general, they look at the Receipt and the item that you are exporting out of the US. If you do it in a week and carry it, should be fine. You may use it, as it is computer, it does not matter…You just need to show the product that you bought at the airport, when they ask.

  6. Dave

    I’m a Canadian citizen travelling to Seattle by car. What if you’re not flying out from US but using a port of entry by a car? Are you still eligible for VAT refund at a Port of Entry?

    1. administrator
      Kumar

      Dave,
      It totally varies by state, most of the times, they are at Airports…you need to check, if they have something on your way back to Canada…

  7. RAJU

    I am from Texas! I am thinking to take an iphone which i want to take to my home country. I checked with stores of tax refund. They were asking for my passport and making some copies of my receipts. Will that affect any of my status here.

  8. Tejas Kumar

    Hey planning to take the new iPhone from Indiana state USA to India. Will i be able to get a tax refund and if yes where can i avail that. tried to find the locations but couldnt find any. Can you please help me out on this?

  9. angel

    I’m a US resident, flying to Australia in 2 weeks. I want to buy a new, expensive camera to bring to my extended family in Australia. I checked and Chicago Ohare doesn’t list a tax desk and neither does LA. Is it possible to get the tax back at all?

    1. administrator
      Kumar

      angel,
      Everything varies by state. Some states like texas has it, I have not come across that for IL. You can try calling any of the outlets and inquiring, if there is such practice. The Outlet malls would tell, if there is any provision as such.

  10. Brolu

    California does not provide Sales Tax Refund. See this Q-n-A on Quora
    https://www.quora.com/Can-overseas-visitors-get-a-refund-of-the-sales-tax-paid-in-California

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