US Sales TaxIn the U.S there is no federal sales tax, which is similar in certain aspects to V.A.T.
Many states and municipalities impose sales tax, generally as a percentage on the sale price of goods and services supplied.
In many cases food and medicines are tax exempt.
The states of Alaska, Delaware, Montana, New Hampshire and Oregon do not impose sales tax.
The tax is generally imposed on consumers.
Wholesalers are exempt from sales tax.
The ten states with the highest sales tax are California, Tennessee, Rhode Island, Mississippi, Indiana, Minnesota, Nevada, New Jersey, Washington, and Kansas.
California is the state with the highest sales tax with a rate of 7.25%.
US Inheritance TaxInheritance (estate) tax is a part of the gift and estate law.
The federal tax is imposed on assets of the deceased.
Non resident aliens pay the tax only on property based in the U.S.
Some states impose own inheritance tax.
Inheritance received by a spouse or charity organisations may be tax exempt.
The federal estate tax generally applies to assets over $12.92 million in 2023, and the estate tax rate ranges from 18% to 40%.
Some states also have estate taxes, and they might have much lower exemption thresholds than the IRS.
US Gift TaxThe gift tax applies to gifts given in a person's life.
The tax is imposed on the donor.
The annual exclusion amount for 2023 is $17,000 ($34,000 per married couple).
That means you could give up to $17,000 (or a married couple total of $34,000) in annual exclusion gifts to any child, grandchild or other person.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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