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Taxes in the US

The United States does not have a VAT tax. However they do have a sales tax, which differs to VAT as it is only charged to end consumers and there are no charging or reporting requirements for companies in the supply chain. The seller is usually responsible for the calculation, collection and settlement of sales tax to the local state, however rules regarding the Sales Tax differ over the forty five participating states, which can make trading complicated. Sales Tax was first introduced in West Virginia in 1921, but has spread to most of the US.

Delaware – Delaware does not currently have a sales tax. They do however have a gross receipt tax. Gross receipts tax rates range from 0.1037% to 2.0736%, depending on the business activity. If income derives from more than one type of activity, separate gross receipts tax reporting is required. The type of business activity also determines whether gross receipts tax is remitted monthly or quarterly.

Florida - Florida’s sales and use tax rate is 6%. There is also a discretionary sales surtax imposed by many counties which applies to most transactions subject to sales tax, this rate depends on the county.

New York - New York’s sales tax rate is 4%, although some counties and cities can then add more sales tax. For instance added sales tax in New York city is 4.5%, when combined with the Metropolitan Commuter Transportation District surcharge of 0.375% the total sales tax for New York City comes to 8.875%.

Wyoming - Wyoming sales tax rate differs from county to county however is generally between 8-9%.

The US also does not have Stamp Duty Tax, they do however have a real estate Transfer Tax. There are three different federal transfer taxes Gift Tax, Estate Tax and Generations Skipping Transfer Tax. Again individual states impose their own taxes. Individuals or estates of individuals who are neither US residents nor citizens of the United States are subject to the US transfer taxes only on transfers of property considered to be located in the United States. Individuals who have relinquished their US citizenship or residence may be subject to alternative rules.

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