It’s probably no surprise that a country with a history as colorful and diverse as the United States might just have a few confounding tax laws.
From belt buckles to deer carcasses, there are a lot of oddities that will add to your tax bill (and a few deductibles too).
Read on to discover which American states are home to the most surprising taxes.
The Civil War may have ended in 1865 but it’s still a part of Alabama life in tax form. Residents are required to pay a tax to support Confederate veterans – even though the last survivors died decades ago.
The funds are usually diverted elsewhere, with at least 1% dedicated to the maintenance of the Confederate Memorial Park in Mountain Creek.
In 2020, this amounted to $670,000 for the museum, making it the only institution in the state with such publicly-funded largesse. In 2021, state lawmakers failed to pass a bill that would allocate an additional 1% of the tax for Black historic sites.
Alaskan captains have access to a $10,000 allowance to write off whaling boat repairs and expenses. But there's a hitch to this deduction: since 1986, commercial whaling has been illegal across the world.
This tax exemption has been enacted specifically for the Inuit groups in remote northern and western Alaska, who rely on whale hunts for subsistence.
When grabbing a coffee-to-go in Colorado, you might notice an additional charge on your bill.
That’s because coffee sleeves are considered non-essential packaging and, as such, are subject to a 2.9% sales tax.
The same goes for a lot of other non-reusable items, including bibs, stir sticks, and straws.
Many states offer week-long sales tax-free shopping events to encourage certain kinds of purchases, including safety equipment items like car seats and life jackets.
Some states exempt children's bike helmets from sales tax. In Connecticut, however, bike helmets are tax-free at all times and for all ages.
Delaware is home to an outsized share of Fortune 500 companies, and it's pretty clear what brings them there: the state's multitude of tax benefits.
There's no corporate income tax for Delaware-registered businesses that operate outside of the state, and there's also no sales tax, no investment income tax, and no inheritance tax.
Property developers in Florida have been known to take advantage of a tax loophole that has been designed to protect farmland.
The so-called "greenbelt statute" taxes farmland at an exceptionally low rate. Savvy landowners, such as Disney, have been known to rent cows to display on one part of their property, allowing the corporation to quite literally milk the lower tax rate.
The law dates back to 1959, when Florida's orange groves were being paved over to make way for strip malls and farmers started getting priced out. Efforts to reform the law have been futile.
Hawaii prides itself on its lush landscapes and natural beauty – so it should come as little surprise that the state has enacted several laws designed to help protect its habitat.
Hawaiian homeowners who have an "exceptional tree" on their property can claim a $3,000 tax credit every three years for costs associated with its maintenance and wellbeing.
And in case you’re wondering, a qualified local arborist advisory committee must certify your tree as being "exceptional" before you can enjoy the deduction.
Those with a sweet tooth might decide to be a little more selective when it comes to buying sugary treats in Illinois, where certain types of candy can incur a 6.25% sales tax.
It all comes down to flour. Candy bars made with flour, such as KitKats, are considered a grocery item in Illinois, and subject to only 1% sales tax.
Those that don't include flour in their ingredients, however, such as classic M&Ms, are regarded as candy rather than food, and so are taxed at the higher rate.
Candy is also taxed in neighboring Indiana. However, the state's definition of candy as treats that come in the form of "bars, drops or pieces" means that marshmallows, honey-roasted peanuts, and cake decorations are all subject to sales tax.
But a pack of sugary Pixy Stix tubes, on the other hand, is considered food and so tax exempt. Likewise, chocolatey Twix bars are also regarded as food because they're made with flour regardless of their form.
Kansas imposes sales tax on "any place providing amusement, entertainment or recreation services," such as, say, a hot air balloon. However, that contradicts the federal law that bans state governments from imposing fees on airlines or air carriers.
As such, Kansas has created a tax exemption for hot air balloons specifically when they're not tethered to the ground, as they then qualify as a mode of transportation.
From recreation to racing, the horse industry is big business in Kentucky, and contributes an estimated $6.5 billion to the state’s economy each year.
While selling a horse that's less than two years of age for breeding purposes to an out-of-state resident is exempt from Kentucky's 6% sales tax, stud fees are not. So if you have a stallion and would love to capitalize on his assets, you'll need to charge that little bit more...
Aviation enthusiasts might find that Louisiana is a bit of a haven for their high-flying hobby.
Antique and small personal airplanes are tax exempt, as long as you're not using them for commercial service, while a separate law allows for a tax exemption when it comes to certain out-of-state aircraft being painted. The caveat is that it must be a complete paint job, not just a touch-up, to qualify for the exemption.
Maine produces 99% of the nation's wild blueberries, so it won't be a shock to discover that the state has a blueberry tax.
Maine collects 1.5 cents per pound on all wild blueberries that are processed in-state, as well as on all unprocessed berries sold out of state. However, the state's Wild Blueberry Commission has asked the state legislature for a one-year hiatus as the industry struggles with increased production costs and low prices.
The money raise is for a good cause though, as the funds go towards research into the promotion and conservations of the wild blueberry industry.
Since 2004, residents of Maryland have been quite literally sending their money down the toilet due to an annual $60 fee for sewage processing.
Nicknamed the "Flush Tax," the charge raises millions of dollars every year. The money goes towards upgrading the state’s major sewage treatment plants, with the specific aim of reducing the discharge of pollutants into Chesapeake Bay and other significant waterways.
A small number of states deem comic books to be a periodical or magazine, and therefore tax exempt.
However, that's specifically for new releases, meaning that older collectible comics are still subject to state sales tax. Massachusetts is the exception to the rule. The state declared in 1985 that comics of any age, including collectors' items, are considered exempt because they meet the definition of a magazine: that is, a pamphlet published periodically.
Minnesota is one of the very few states that's completely tax-free for clothing. That is, however, unless you're shopping for furs, which are not exempt and incur the state's sales tax of 6.875%.
This only applies to clothing that's comprized mainly of fur, however – if it's just the cuffs or collars on a coat, for example, the item will still be exempt.
If you're in Las Vegas to see a show, there's a good chance you'll be paying the state's live entertainment tax. Venues accommodating 200 or more people must pay a state tax of 9% on admissions to events.
This has proven very lucrative for Nevada and helped to generate annual revenues of almost $1 billion prior to the pandemic. It's estimated that a whopping 97% of that money comes specifically from Las Vegas.
Residents of New Hampshire pay neither income tax nor sales tax, which is highly unusual.
However, they do pay much more in property taxes, with their rate currently the third highest in the country. It just proves that nothing in life is certain apart from taxes – even if you thought you'd escaped them by moving to New Hampshire...
Many of us aspire to live long, healthy lives, with residents of New Mexico having an additional reason to stay alive for as many years as possible: tax breaks.
New Mexicans over the age of 100 are exempt from having to file income tax, regardless of whether they have an income or not.
Bagels are such a beloved NYC breakfast that hungry city slickers are willing to overlook a quirky food tax to get their daily fix.
While buying a whole bagel is exempt from sales tax on account of it being food, buying a bagel that has been toasted, topped with cream cheese, or even simply sliced in half is subject to 8.875% sales tax. Strangely enough, sliced bread is tax-free.
Taxes on liquor vary by state, as well as by city and county. But one tax is certainly unique to Pennsylvania. Every time you fill your glass, you're topping up commonwealth coffers to the tune of 18% to help cover the recovery costs of the devastating Johnstown Flood... of 1936.
Rest assured that the city of Johnstown has long since been rebuilt but, despite that, what was supposed to be a temporary tax on alcohol to fund repairs has survived for almost a century. In fact, it's even increased over time, with the tax now supporting the general fund.
The Bible tells us that giving to those less fortunate pleases the Lord – and in South Carolina, it also comes with a tax incentive.
Licensed meat packers, butchers, and processing plants are eligible for a $75 tax rebate for every deer or wild hog carcass that they donate to charities that distribute food among the needy.
As if the process of being sued or suing someone else wasn’t stressful enough, the state of Tennessee has decided to add an extra sting: a litigation tax.
The fee is $13.75 for all cases in municipal court but only if you're found guilty. Parking space penalties come with a cheaper tax rate of just $1, though recipients are required to pay it even if they don't go to court over their ticket.
Of course, it's no surprise that belts – along with cowboy boots – are tax exempt in the birthplace of the American Cowboy.
Belt buckles, however, are not. And what's a cowboy belt without a buckle? If you're in the market for a full Montie Montana look, you’ll have to pay extra sales tax.
In many states, ambiguity surrounds at which point the sale of an animal should be taxed, with factors such as whether the creature will be used for food or for breeding purposes both consideration points.
However, Virginia makes it quite clear with its $0.50 tax per sheep or lamb sold in the state. The proceeds of tax go directly to the Sheep Industry Board for the "promotion and economic development of the Virginia sheep industry."
Independence Day in West Virginia can be a bit of a dud for fireworks enthusiasts, as residents are banned from purchasing most pyrotechnics.
Sparklers, however, are allowed – though they come at a price. Sellers of sparklers and other novelties that emit showers, sparks, or noise must pay an additional 12% safety tax, in addition to any other state and local sales taxes.
Now take a look at the countries Americans should retire to, according to experts