The 9 Strangest Taxes You’ll Find in America

You might think that many taxes don’t make sense or are even unreasonable. In the U.S., each state can tax to fund its activities, and some states have stranger taxes than others. 

The slightest alterations could transform tax-exempt items into taxable ones. But some sales taxes are avoidable if you know what they are. 

Paying taxes when you don’t have to is one of the many ways people waste money. The taxes on this list are some of the strangest in the nation.

If you want to purchase a belt buckle in Texas, you might need to pay sales tax. The state won’t tax you if it’s included with a belt since belts are not taxable in the state. 

However, a buckle that is sold separately is considered an accessory, and in Texas, accessories are fair game when it comes to sales tax. 

The good news is the rest of your outfit, including the cowboy boots, is tax-exempt.

Maine doesn’t impose a tax on staple groceries, like fruit, milk, and vegetables. But there is a tax on wild blueberries, even though they're considered just as much a staple as any other fruit.

The state imposes a tax of 1.5 cents on every pound of wild blueberries processed in Maine. This tax also applies to unprocessed wild blueberries when they're shipped out of state.

Colorado’s tax laws can get confusing when it comes to packaging. The state applies a 2.9% tax rate to food items when they include packaging for the customer’s convenience. While plates, cups, and bowls are considered essential, many similar items are not.

Straws, cup sleeves, and even foods packaged with portion dividers are deemed nonessential. These convenience items are subject to the 2.9% tax rate, even when packaged with food.

Kentucky is famous for its horse shows and horse racing. So maybe it makes sense the state charges a tax on stud fees. If you want to breed a thoroughbred, expect to pay the state a 6% tax.

The tax applies even if you choose to use artificial insemination for your mare. However, you're safe from the tax if you live in Kentucky and take your horse out of the state for breeding.

Buyer convenience comes into play again in New York State. Unsliced bagels are grocery items and, therefore, tax-exempt. But if you want to buy your bagels sliced, it’ll cost you.

This simple action transforms the unprepared bagel into a prepared food. So, the next time you order bagels, consider if an 8.875% sales tax is worth the minute it takes to slice your own.

Repairs on shoes are tax-exempt in the state of Minnesota. You can have your shoes repaired, shined, and even dyed, all without paying tax.

However, clothing repairs are subject to sales tax. If you need your gown dry cleaned or buttons on your suit replaced, be prepared to pay sales tax on these services.

Physicians won’t need to pay a tax on human organs when used for transplants. But if they need an artificial joint, tax laws apply. Artificial body parts used for transplants are also not tax-exempt.

Though human hair is not artificial, it's not tax-exempt in Ohio either. Physicians providing hair transplants are out of luck and must pay the tax.

Prepared foods are not tax-exempt in many states, and Nebraska is no exception. But the simple addition of eating with utensils can make otherwise unprepared food into prepared food.

If your food comes with a plastic fork or spoon, you’ll need to pay sales tax. If your soda can comes with a straw, it’s considered a prepared food. If it doesn’t, you might get away without paying extra.

Income generated through illegal drug sales and theft, or through any illegal activity, is taxable. The IRS considers these criminal activities self-employment and should be reported on Schedule C of the 1040.

Of course, the likelihood that criminals are honest enough to pay taxes on their illicit revenue is slim to none. But criminals have been convicted on tax evasion charges when no other charges stick (Al Capone is a famous example). 

As a result, many convicted criminals often declare their ill-gotten gains to avoid further evasion charges.

As Ben Franklin famously said, nothing is certain except death and taxes. Taxes are everywhere and are imposed on just about anything you can imagine. 

Some are complicated, and you might not even pay attention to which items and services you pay sales tax on and which you don’t. 

But you could save a little money by not purchasing that belt buckle separately or by skipping the utensils. Add that money to your savings account instead. 

Every dollar counts, especially if you want to see if you can retire early or buy a house.