Did you know that the Soviet Union used to tax adults for being childless? Well believe it or not, it’s true. To encourage more people to reproduce, childless men (aged 25-50) and women (aged 20-45) had a 6 percent tax imposed on their income. The law was in effect from 1941 until 1992. This is just one of the strange things that have gone down in tax history. Keep reading for more interesting tax facts.
1. Bottled water is taxable in Washington. However, you can request a refund of the sales tax if the water is prescribed to you by a doctor.
2. If you win more than $5,000 from the lottery, the IRS automatically takes 24% of your winnings. You’ll pay the rest of your bill at tax time.
3. In 1944, the highest U.S. tax rate was 94% for incomes over $200,000.
4. When the IRS began requiring taxpayers to list their dependents Social Security numbers in 1987, seven million children vanished from tax returns.
5. In 2009, citizens in Hubei, China were ordered to smoke cigarettes or pay a fine. The country was in an economic crisis and cigarette taxes provided steady revenue, so a quota was set to increase sales.
6. Madison Square Garden has been exempt from New York property taxes since 1982. The agreement was only supposed to be for 10 years. However, it was worded incorrectly so the exemption will be in effect as long as the Knicks and Rangers keep playing their home games there.
7. In Indiana, marshmallow crème is tax exempt, but marshmallows are not.
8. The Rhode Island individual income tax return (form RI-1040) has emoticons on it. There’s a frowny face on the “Total Amount Due” line and a smiley face on the “Amount Overpaid” line.
9. West Virginia charges a 12 percent “safety fee” (in addition to sales tax) when you buy fireworks. The revenue is distributed to the Veterans’ Facility Support Fund and Fire Protection Fund.
10. Al Capone was one of the America’s most notorious mobsters, but he didn’t go to jail for murder. Instead, he was convicted of tax evasion and sentenced to 11 years in prison.
11. In Sweden, your child’s name must be approved by the tax agency before they turn five years old or you’ll be fined.
12. Canadian cereal companies receive a tax break for putting a toy inside the box.
13. Texas charges sales tax on deodorant but not on antiperspirant. It’s exempt because the FDA requires it to be labeled with a drug facts panel.
14. In NJ, Iowa and Pennsylvania pumpkins are exempt from sales tax if you plan to eat them. Pumpkins painted, cut or sold as decorations are taxable.
15. Couples in South Carolina can earn a $50 tax credit for taking premarital courses. Both parties must attend for a minimum of 6 hours within 12 months of applying for a marriage license. The course must be taught by a licensed professional or active member of the clergy.
16. Bribes were tax deductible in Germany until 2002.
17. In 1992, musician Willie Nelson released “The IRS Tapes: Who’ll Buy My Memories?” to help pay off his tax debts.
18. The “jock tax” requires professional athletes to pay income taxes in almost state or city they play a game in.
19. Around 90% of Americans who have housekeepers and babysitters cheat on their taxes.
20. In England it’s cheaper to buy nuts with shells. There’s a 20% value-added tax (VAT) on de-shelled, salted and roasted nuts.
21. In New Mexico, you are exempt from filing and paying income taxes when you turn 100 years old.
22. Pennsylvania charges an additional 18% “flood tax” for every bottle of alcohol sold. The law was originally designed to help rebuild Johnstown after the flood of 1936 but remains in effect today.
23. Citizens of the Cayman Islands do not pay income taxes. Instead, the government makes its money by imposing fees on imports, work permits and tourism.
24. Germans who have been christened or baptized must pay 8 to 9 percent of their income to the church. If they opt out of the church tax, they can no longer attend weddings, baptisms and funerals.
25. The U.S. federal tax code was 400 pages in 1913 and rose to 70,000 pages in 2010.
26. Texas charges a “pole tax” for every person who visits a strip club. The revenue goes to the Sexual Assault Program Fund and health coverage for low-income individuals.
27. Business owners in Conegliano, Italy must pay a shadow tax if their sign or awning creates shade on public walkways.
28. Japan introduced a fat tax known as “Metabo Law” to fight obesity. Every year adults between 40 and 74 years old must have their waists measured. If they exceed the target (33.5 inches for men, 35.4 inches for women), they must pay a fine. The goal of the law is to encourage healthier lifestyles and reduce the country’s medical costs associated with obesity-related illnesses. Companies and local governments are also held accountable to ensure their employees and residents meet the waistline requirements, promoting collective responsibility.
29. During his reign (AD 69-79), Roman emperor Vespasian imposed a urine tax on the distribution of urine from its public urinals. This was used as a key ingredient in the laundry industry as a source of ammonia.
30. Double amputees in Oregon are eligible for a $50 tax credit.
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Frequently Asked Questions
What are some surprising tax facts about the U.S.?
The U.S. has unique tax rules, including progressive tax brackets, state-by-state tax differences, and unusual deductions that many people overlook.
Which countries have the highest income tax rates?
Countries like Denmark, Japan, and France typically rank among the highest for top marginal tax rates, though specific brackets and thresholds vary by country.
Are there countries with no income tax?
Yes. Nations such as the United Arab Emirates, Qatar, and Bermuda have no personal income tax, relying instead on other forms of revenue like VAT, corporate taxes, or oil income.
What is a value-added tax (VAT) and how does it differ from U.S. sales tax?
VAT is a consumption tax applied at each stage of production and distribution. The U.S. does not have a federal VAT and instead uses state and local sales taxes applied at checkout.
Do other countries offer unique tax deductions or credits?
Yes. For example, Germany offers deductions for home office use, Canada provides credits for medical expenses, and the U.K. offers tax-free savings through ISAs.
Why do tax systems vary so much from country to country?
Differences in government structure, social programs, economic priorities, and cultural factors all shape how each country designs its tax system.
How do U.S. taxes compare to taxes in other countries?
The U.S. generally has lower overall tax burdens compared to many European countries but also provides fewer government-funded services like universal healthcare.
What is the most unusual tax ever implemented?
Around the world, governments have taxed beards, windows, salt, bachelors, and even playing cards. These historical taxes often highlight cultural or political priorities of the time.
Are there tax treaties between the U.S. and other countries?
Yes. The U.S. has tax treaties with many nations to prevent double taxation and clarify rules for residents working or earning income abroad.
The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.
