States That Are Sales Tax Exempt for Canadians
- Paying taxes is never fun.money, money, money image by easaab from Fotolia.com
With Canada's general tax on goods and services (GST) of 7 percent---a tax that must be paid on items purchased outside of Canada and then brought into the country---it is only natural for Canadians shopping in the United States to wonder if they can receive an exemption or refund on U.S. sales taxes. In most cases, the answer is no, but there are a few exceptions. - The state of Washington has a statewide sales tax. As a Canadian visiting Washington you may be exempt from that sales tax, provided you are a resident of a province in Canada that charges less than 3 percent sales tax itself. According to Washington State Department of Revenue, the qualifying provinces are Alberta, New Brunswick, Newfoundland and Labrador, Nova Scotia, the Northwest Territories, Nunavut, Quebec and the Yukon. To take advantage of this sales tax exemption, present your ID at the point of purchase. Only items that won't be used in Washington qualify for this exemption, so you will still pay sales tax on such things as hotel rooms and restaurants.
- The state of North Dakota provides a process for Canadian residents to receive a refund on purchases made in North Dakota and then taken to Canada within 30 days. The North Dakota Office of the State Tax Commissioner provides instructions. To receive a refund, you must send in your purchase receipts. Each qualifying receipt must show a total of at least $25 in eligible purchases. You must also have paid at least $15 in taxes to qualify for a refund. You can send in groups of receipts to reach the $15 amount. You must submit receipts within three years of your purchase to qualify for the refund.
- Perhaps the simplest way to avoid state sales tax in the United States is to shop in states that don't have a sales tax. Oregon, Montana and New Hampshire are all on or fairly close to the Canadian border and do not have sales tax.
