Is Duty Free Really Worth It?

This post was posted by The Hipmunk on Hipmunk’s Tailwind blog on February 21, 2015.

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When it comes to scoring a deal on duty-free items, the best bargains are the ones most heavily taxed in your home country (and state). In the U.S. this puts alcohol and tobacco-products at the top of the list. While U.S. federal federal tax is adjusted for the percentage of alcohol in a bottle of liquor, a 750ml bottle is taxed at $2.14 and just over $1 for a pack of 20 cigarettes. States also have their own tax on alcohol and tobacco. States liThis post was posted by The Hipmunk on Hipmunk’s Tailwind blog on February 11, 2015.This post was posted by The Hipmunk on Hipmunk’s Tailwind blog on February 12, 2015.ke Washington, Oregon, and Virginia have some of the highest rates.

In general, beauty-related items, like perfumes and cosmetics, tend to be 15 to 20 percent cheaper than domestic U.S. prices. Pro tip: Fragrance multipacks are often created just for duty-free shops and could save you some cash compared to individual bottles. Consider free cosmetic samples and in-store sales at your local beauty store, which may tip the scale in favor of buying beauty items at an affordable price domestically.

Other goods like electronics, cameras, confections such as chocolate, and high-end jewelry and clothing are probably worth passing on. While discounts can range from 10 to 25 percent, an online or in-store sale in the U.S. might yield the same results. That being said, if the duty-free store is offering a one-of-a-kind product, or if you’re interested in an item that never goes on sale, just saving the tax might be worth the purchase.

For the best deal, know what the customs regulations and exemptions applicable to you and your home turf. Make sure to check prices at your local retail stores so you can compare them when you get to a duty-free shop. And keep those receipts for when you enter customs at home – it will make declaring your new goodies that much easier!

 

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