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Travel Tip: Avoiding Travel Taxes

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Did you know that discriminatory taxes and fees associated with travel can add an additional 56 percent to your travel costs on top of sales tax? Here’s why and what you can do to get around it.

These fees vary hugely from city to city. For example, if you travel to Chicago you could pay 80 percent more in taxes than if you traveled to Fort Lauderdale.

In fact, according to a study from the Global Business Travel Association, three of the top five cities with the lowest total tax burden are in the state of Florida.

Meanwhile, traveling to Chicago, New York City, Seattle, Boston, and Kansas City you stand to pay the highest amount.

One way to eliminate some taxes is changing how you rent a car. Rental cars have some of the highest tax rates but much of that is confined to airport rentals.

You can reduce the rate significantly by renting in a neighborhood location. Another way to save on taxes is to rent an apartment or a home for your stay, which eliminates resort and other hotel fees.

Find more helpful hints in our Travel Tips section.