There is no nationwide tax refund for tourists in the US. The federal government does not levy a sales tax, so there is nothing for a federal agency to refund, and sales taxes are set separately by each state and locality. As of 2026, Texas is the only state that runs a program refunding sales tax to international visitors, and that program operates through private companies that keep a significant service fee. Everywhere else, your options are to shop in a state with no sales tax or to buy at airport duty-free.
Why the US Has No National Refund
The federal government taxes income, estates, and specific excise items like fuel and tobacco. It does not tax retail purchases. Because no federal sales tax exists, no federal agency has the authority or budget to refund one, and filing a nonresident return like Form 1040-NR will not recover anything you paid at a cash register.
Sales tax is a state and local matter, and each jurisdiction sets its own rate and rules.1Congress.gov. Amdt10.3.5 Federal Power to Tax and Tenth Amendment Combined rates range from zero in five states to roughly 11.5% in the highest-tax areas. That patchwork is why any refund program has to be built one state at a time, and almost none exist.
Texas Is the Only State That Refunds Sales Tax
Texas is the last state with a working refund system for international shoppers. Under Texas rules, a retailer may refund the sales tax it collected on merchandise if the customer provides acceptable proof that the goods were exported from the country.2Comptroller of Public Accounts. Texas Sales and Use Tax Frequently Asked Questions – Shipped Out of Texas/Exports In practice, tourists rarely negotiate with individual stores. Private companies such as Texas Tax Back operate refund offices in cities including Houston and San Antonio, handling the paperwork and issuing refunds directly.3Texas Tax Back. Sales Tax Rebates for International Shoppers in Texas
The refund covers tangible merchandise purchased in Texas and taken out of the country within 30 days of departure.3Texas Tax Back. Sales Tax Rebates for International Shoppers in Texas Hotel stays, restaurant meals, car rentals, and other services are not eligible. Only physical goods that leave the United States qualify.
What to Bring to a Refund Office
Before your departure, gather the following and visit a refund office:
- Original paper receipts from every Texas purchase you want to claim. Digital copies and credit card statements are not accepted.
- A valid foreign passport.
- Proof of entry into the US, such as a visa stamp or a printed I-94 travel record.
- Proof of departure, such as a confirmed international flight itinerary or boarding pass.
Service Fees Cut Into Small Refunds
The refund companies deduct a service fee before paying you out. Fees are substantial and can eat much of a small refund, so the program pays off mainly on high-value purchases. Choosing an in-person cash refund generally means a larger cut than waiting for a check or credit card refund by mail. A $50 souvenir rarely justifies the trip to a refund office; a $2,000 electronics purchase usually does.
Louisiana’s Program Has Ended
If you have read older travel guides, you may see Louisiana’s Tax Free Shopping program mentioned. That program permanently ended on July 1, 2024 under Act 255 of the 2023 Louisiana Legislature, and its refund centers closed to the public the day before.4Louisiana Department of Revenue. Louisiana Tax Free Shopping Program for International Visitors to End July 1 The final mail-in claim deadline was June 30, 2025. No replacement has been announced, so purchases made in Louisiana today carry no refund route.
Shop in a State With No Sales Tax
The simplest way to avoid sales tax is to shop in a state that does not charge one. Five states impose no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. In four of them, local governments do not add their own sales taxes either, so the price on the tag is the price you pay. Alaska is the exception: it has no state sales tax, but some Alaska cities and boroughs charge local sales taxes that can reach around 7.5%.
Geography can work in your favor. Portland, Oregon sits right across the border from Washington state, which has one of the highest sales tax rates in the country. Buying an expensive item in Oregon rather than Washington can save you close to 10% with no paperwork at all.
Duty-Free Shopping at Airports
Duty-free shops inside international airport terminals sell goods exempt from both local sales tax and federal import duties. These stores operate under US customs regulations, and you need to show a boarding pass for an outbound international flight to buy anything.5eCFR. 19 CFR Part 148 – Personal Declarations and Exemptions The goods are treated as exports, meant for use outside the United States.
Selection focuses on alcohol, fragrances, cosmetics, tobacco, and certain electronics. Prices are sometimes competitive and sometimes not. Compare before assuming duty-free is the cheapest option; the savings come from the tax exemption, not necessarily from a lower base price.
Your Home Country May Still Charge Duty
“Duty-free” means free of US duties and taxes. Your home country may still charge import duties on what you bring in. If your purchases exceed your destination country’s personal allowance, you will owe duty on arrival home.6U.S. Customs and Border Protection. Customs Duty Information The European Union generally allows €430 worth of goods for air travelers, and Canada allows CAD $800 after a trip of seven days or more. Check your own country’s limits before loading up.
Liquids and Connecting Flights
If you buy alcohol, perfume, or other liquids at duty-free and then have a connecting flight inside the US, TSA rules apply at the next security checkpoint. You can carry duty-free liquids larger than 3.4 ounces through security only if the retailer sealed them in a transparent, tamper-evident bag, you have the original receipt showing purchase within the past 48 hours, and the bag shows no signs of tampering.7Transportation Security Administration. Liquids, Aerosols, and Gels Rule If the seal is broken or the item cannot be screened, security will confiscate it. Packing liquid duty-free items in checked baggage avoids the problem.