Shopping, Sales Tax and Duty Free in the USA

Updated for 2026

I learned a few money-saving tricks the hard way. The first time I bought trainers in New York, I forgot about sales tax at the till and paid more than the sticker price. Now I always check the local rate, pay in US dollars on my card, and keep receipts for warranties or any tax reclaim options.

If you are travelling under the Visa Waiver Program, make sure your ESTA is approved before you shop. You can also reach the team via Contact or start from the Home page.

Understanding US Sales Tax

In the United States, the price tag almost always excludes sales tax. The tax is added at the till and varies by state — and sometimes by city or county. There is no national VAT equivalent.

As of 2026, five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Note that some local jurisdictions in Alaska still add their own local tax, so zero is not guaranteed even there.

Combined state and local sales tax rates range from 0% to over 11% depending on where you are. The national average combined rate is approximately 6.4%.

ITEM	BASE PRICE (in USD)	TYPICAL SALES TAX (8.875% NYC)	TOTAL PAID
Everyday t-shirt	$25	exempt (under $110)	$25
Mid-range trainers	$120	$10.65	$130.65
Casual sit-down restaurant meal (per person)	$28	$2.49	$30.49

A few notes on these figures: everyday t-shirts at mainstream US retailers typically range from $15–$30, with mid-range options around $25. A popular pair of mid-range trainers from Nike or Adidas retails at approximately $110–$130 in 2026. A casual sit-down meal (think burger, drink and a side) runs around $25–$35 per person before tax and tip — budget an additional 18–20% on top for gratuity, which is customary and expected in the USA.

Clothing and groceries may be exempt or taxed at a lower rate in some states. In New York, clothing and footwear priced under $110 per item are exempt from the 4% state sales tax. New York City also applies this exemption at the local level. Note: items priced at $110 or more are taxed on the full price, not just the amount over the threshold. Always check local rules, as some counties opt in and out of the exemption.

Traveller tip: To estimate the total price, multiply the sticker price by one plus the local rate. For example, $120 × 1.08875 in New York City gives approximately $130.65. For a casual dinner at $28, multiply by 1.08875 for tax, then add 18–20% tip on the pre-tax amount — your total will likely land around $37–$39.

Smart Shopping Tips for UK Travellers

Outlet Malls and Discounts

Outlet centres such as Premium Outlets and Tanger Outlets often offer significant reductions. Weekdays are quieter and staff generally have more time to help with sizing or product queries.

Electronics and Warranties

Electronics can offer strong value compared to UK prices. Before buying, check that the device runs on 110 volts and uses the US plug type. More importantly, confirm whether the manufacturer warranty is valid in the UK — many US warranties are domestic only. Look for an international warranty where possible, or ask the retailer directly.

Cards and Payments

Most UK Visa, Mastercard, and Amex cards are widely accepted. Always choose to pay in US dollars at the point of sale — opting for the retailer’s sterling conversion (known as dynamic currency conversion) will almost always result in a worse rate and extra fees. If your card charges foreign transaction fees, consider a fee-free travel card such as Monzo, Starling, or Revolut before you travel.

Returns and Clothing Sizes

US clothing sizes differ from UK sizes. As a general guide, a UK women’s size 12 is close to a US size 8; for men, a UK jacket size 42 is typically equivalent to a US 42, though the cut may differ. Always keep receipts and tags — 30-day return policies are common, but terms vary by retailer.

Duty Free Rules When Entering the USA

When arriving in the USA as a visitor, you may bring personal items for your trip. The key duty-free allowances for non-residents are as follows:

ITEM	ALLOWANCE FOR NON-RESIDENT VISITORS	NOTES
Alcohol	1L duty-free	Adults aged 21 or over only
Cigarettes	200 cigarettes (1 carton)	Adults aged 21 or over only
Gifts and souvenirs	Up to $100 total value	See conditions below
Food	Sealed commercial products generally permitted	Declare all food, especially animal-based items

If you accidentally packed something restricted, declare it honestly. Officers may seize and dispose of the item, but truthful declarations help you avoid penalties.

Key conditions and notes

The $100 gift exemption comes with conditions. To qualify, you must be staying in the USA for at least 72 hours, and you can only claim this exemption once every six months. Family members travelling together cannot pool their individual $100 gift allowances — each person’s exemption is separate.

Alcohol and tobacco are age-restricted. Both alcohol and tobacco may only be brought in duty-free by travellers aged 21 or over. This applies regardless of the legal age in your home country.

Alcohol cannot be included in the gift exemption. Alcoholic beverages, tobacco products, and perfume containing alcohol worth more than $5 may not be included within the $100 gift exemption. These items are treated separately.

Do not gift-wrap items. CBP advises against gift-wrapping any items you carry into the USA — officers may need to unwrap them during inspection.

Always declare. Declare food, plant material, alcohol, and anything you are unsure about on your CBP Declaration Form 6059B. If you accidentally packed something restricted, declaring it honestly is always the right move — officers may confiscate the item, but truthful declarations help you avoid fines or prosecution.

Food rules. Sealed, commercially packaged food products are generally permitted. Avoid bringing fresh meat, fresh fruit, fresh vegetables, or live plants. Animal-based products in particular are subject to strict biosecurity rules — when in doubt, declare it.

Duty Free Allowances When Returning to the UK

When flying back to Great Britain (England, Scotland, and Wales), you can bring in goods within the following personal duty-free allowances without paying UK tax or duty. Note that Northern Ireland follows different rules — check the HMRC website if this applies to you.

Allowances are per person and cannot be combined with a travelling companion to bring in a single item over the threshold.

CATEGORY	ALLOWANCE
Beer	42L
Still Wine	18L
Spirits or liqueurs over 22% ABV	4L
Sparkling wine, fortified wine, or other drinks up to 22% ABV	9L

You can mix and match the spirits/sparkling wine allowance — for example, 2 litres of spirits and 4.5 litres of sparkling wine (each at 50% of their allowance), as long as the combined total does not exceed 100% of the overall allowance.

Alcohol allowances apply to travellers aged 17 and over only.

Tobacco

You may bring one of the following, or a proportional combination:

200 cigarettes, or
100 cigarillos, or
50 cigars, or
250g of tobacco, or
200 sticks of tobacco for heating

Example of mixing: 100 cigarettes (50% of allowance) + 25 cigars (50% of allowance) = 100% total. This is allowed. Tobacco allowances apply to travellers aged 17 and over only.

If you exceed your allowance, you must pay tax and duty on the full value of the goods in that category — not just the amount over the limit. Declare goods at the red channel or red point phone at the airport.

Can Tourists Get a Tax Refund in the USA?

There is no national VAT refund scheme for international visitors to the USA, unlike in many European countries.

Texas remains the one state where international shoppers can apply for a sales tax refund on eligible purchases from participating stores, provided the goods are exported. Private refund operators run this scheme and may have counters in airports or city locations. You will typically need original itemised receipts and may need to show the goods before departure. Always verify current terms directly with the refund operator before you shop.

Louisiana’s Tax Free Shopping Programme for international visitors was permanently closed on 1 July 2024 under state legislation. All refund centres have closed and the mail-in option for eligible pre-July 2024 purchases expired on 30 June 2025. This programme no longer exists.

No other US state currently operates a tourist tax refund scheme.

Coupons, Discounts and Sale Seasons

Coupon Culture

Apps and websites such as RetailMeNot, Honey, and Rakuten can help you stack savings across a wide range of US retailers. Local deal platforms like Groupon are useful for attractions, dining, and experiences.

Sale Events

Black Friday and Cyber Monday bring substantial reductions across fashion, tech, and travel. Some states also run short sales tax holiday weekends on specific categories — for example, Texas runs a back-to-school tax-free weekend each August for clothing and school supplies under $100 per item. Dates and qualifying items vary by state, so check in advance if your trip coincides with one.

Traveller tip: Signing up for store email newsletters a week before you fly often unlocks an instant 10–15% welcome discount code valid on your first purchase.

Quick Checklist

Check the sales tax rate for your destination state and city before shopping
Pay in US dollars on your card — always decline dynamic currency conversion
Keep receipts for warranties, returns, and any tax refund claims
Declare food, alcohol, gifts, and any restricted items when entering the USA
Know your UK duty-free allowances before you fly home — especially the £390 other goods limit
Use deal apps and time your shopping around sale events where possible Remember: tobacco and alcohol allowances only apply if you are aged 17 or over

FAQs

Do tourists pay sales tax in the USA? Yes. Sales tax is charged to everyone at the point of sale — there is no tourist exemption at the till. The rate depends on the state and often the city or county.

Is shopping cheaper in the USA than in the UK? It can be, particularly for clothing, footwear, and electronics. The absence of VAT (which is built into UK prices at 20%) means pre-tax prices in the USA often appear lower. Factor in sales tax and exchange rate costs before assuming a saving.

Can I claim back US sales tax? In most states, no. Texas is the only state that currently offers a tourist sales tax refund scheme via private operators for exported goods. Louisiana’s programme ended in July 2024.

How much duty free can I bring back to the UK? Up to £390 worth of other goods, plus allowances for alcohol (see Section 4 above) and tobacco. All allowances are per person and cannot be combined between travellers.

What happens if I go over my duty free allowance? You must declare your goods using the red channel. UK Border Force will charge duty and VAT on the full value of the goods in the exceeded category, not just the excess above the limit. Border Force officers also conduct random checks in the green channel — do not risk it.

Shopping, Sales Tax and Duty Free in the USA – A Practical Guide for UK Travellers