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A duty-free allowance (also called a personal exemption) is the total value of goods you can bring into a country without paying duty or tax. For US residents returning from abroad, it’s usually $800 per person. 

Importantly, buying at a duty-free shop only skips the taxes of the country you’re leaving, so those purchases still count toward your allowance at home.

This guide contains:

  • How the US duty-free allowance works
  • Duty-free allowances in other countries
  • Duty-free allowance tips for business travelers

If you travel abroad for work, Holafly for Business keeps you online with secure mobile data.

How the US duty-free allowance works

Most returning US residents can bring back $800 worth of goods per person, duty-free. The $800 allowance comes with four conditions:

  • Goods for personal or household use, or gifts
  • Purchases that travel with you (items sent later don’t count, except for shipments from certain US territories)
  • A stay abroad of at least 48 hours (not required when returning from Mexico or the US Virgin Islands)
  • No use of the allowance in the past 30 days

If you don’t qualify for the $800 (e.g., after a trip shorter than 48 hours), a $200 exemption applies instead. It covers only 50 cigarettes, 10 cigars, and 150 ml of alcohol, and if your goods total more than $200, none of them are duty-free.

The allowance rises to $1,600 when you return from American Samoa, Guam, the Northern Mariana Islands, or the US Virgin Islands. Up to $800 of that can be goods bought elsewhere on the trip.

Alcohol and tobacco limits

Your $800 allowance can include:

  • One liter of alcohol (if you’re 21 or older)
  • 200 cigarettes
  • 100 cigars

Anything above those amounts is dutiable, even if your total stays under $800 (e.g., if you bring back three liters of wine and nothing else, two liters are subject to duty). Keep in mind that state laws can also limit how much alcohol you bring in without a license.

What counts toward the allowance

Everything you acquired abroad counts toward your allowance and must be declared, even when its value is below $800. 

This includes:

  • Duty-free shop purchases
  • Gifts you received abroad
  • Personal gifts you bought abroad for friends or family (gifts bought for clients or business purposes don’t qualify for your personal exemption and are dutiable)
  • Repairs or alterations made abroad to items you already own

Note: Items you took with you from the US don’t count toward your allowance, though foreign-made items may require proof that you owned them before the trip.

What happens if you go over your duty-free allowance

If your goods exceed your $800 allowance, you pay duty only on the amount over the allowance. 

The next $1,000 is charged at a flat 3% rate, and anything beyond that is charged at the regular rate for each item. To put this into perspective, if you bring back $1,500 in goods, $800 is duty-free, and the other $700 is charged at 3%, so you’d pay $21 in duty.

Families who live in one household and return together can combine their allowances on one declaration, no matter who owns each item. Still, US Customs and Border Protection (CBP) can seize tobacco over your limit and issue penalties, so declare everything and keep your receipts handy.

If you owe duty, you must pay it before you leave the CBP checkpoint. Accepted payment methods include:

  • US currency
  • Personal checks drawn on a US bank
  • Government checks, money orders, or traveler’s checks
  • Visa or Mastercard (at some ports of entry)

Duty-free allowances in other countries

Each country sets its own limits, and as a visitor, you follow the rules of the country you’re entering.

Here’s how the allowances compare in four destinations:

DestinationWhom it applies toGoodsAlcoholTobacco
UK (Great Britain)Anyone arriving from outside the UK£390 (£270 by private plane or boat)42 liters of beer and 18 liters of wine, plus 4 liters of spirits or 9 liters of drinks under 22% ABV200 cigarettes or 50 cigars or 250g of tobacco
EUAnyone entering from outside the EU€430 by air or sea, €300 by land4 liters of wine and 16 liters of beer, plus 1 liter of spirits or 2 liters of sparkling or fortified wine200 cigarettes or 50 cigars (lower in some countries)
CanadaVisitors (non-residents)Personal effects to take home, plus gifts up to CAD 60 each1.5 liters of wine or 1.14 liters of spirits or 8.5 liters of beer200 cigarettes, 50 cigars, or 200g of tobacco
AustraliaTravelers aged 18 and overAUD 900 (AUD 450 for minors)2.25 liters25 cigarettes or 25g of tobacco, plus one open packet

4 Duty-free allowance tips for business travelers

The personal allowance covers goods for personal use, so work items need their own paperwork.

  • Keep commercial samples and goods for resale out of your allowance, as US rules exclude them (Australia may also require a customs entry above AUD 1,000).
  • Use an ATA Carnet, an international customs document, for samples, professional equipment, and trade show goods you’ll bring back.
  • Register foreign-made laptops and cameras on CBP Form 4457 at a CBP office or port of entry before you leave (once signed, it remains valid indefinitely for future trips). Commercial equipment not covered by a carnet can be registered using CBP Form 4455 instead.
  • Save receipts for everything you buy abroad, for customs and your expense report.

Preparing for your next work trip? See our business trip plan, business trip packing list, and business travel checklist.

Get secure mobile data on arrival with Holafly for Business

Once you clear customs abroad, secure mobile data is key for the rest of the trip.

Holafly for Business is an eSIM provider available in 160+ destinations that activates on your device, so you don’t have to worry about local SIM cards or roaming charges. Your company also gets access to our centralized management platform, the Holafly Business Center, where admins can manage individual eSIMs, invoices, and data usage.

Holafly Plans for Business come in four tiers, all featuring hotspot, 4G/5G, and 24/7 multilingual support:

  • Daily: Unlimited data with pay-per-day flexibility, built for short business trips under 16 days a month.
  • Monthly: Unlimited data for teams traveling more than 16 days a month, a fit for frequent travelers and long-term remote staff.
  • Annual: Unlimited data for ultra-frequent travelers, suited to long-term global operations and predictable annual budgets.
  • Enterprise: Bespoke plans for companies managing travel for 20+ employees a year, with volume discounts, a dedicated account manager, priority support, and custom integrations, built to optimize costs, streamline operations, and ensure seamless global connectivity across teams.

Not sure which plan is right for your team? Book a demo.

FAQ

Can you mail gifts to the US duty-free?

Yes, bona fide, unsolicited gifts mailed from abroad to friends or relatives in the US are duty-free if their retail value is $100 or less, provided the recipient doesn’t receive more than $100 in gifts on the same day.

Max Woolf

Max Woolf

Writer

I’m a writer with over eight years of experience in digital content. My work has appeared in publications such as The New York Times, Forbes, Business Insider, and the BBC. At Holafly, I write clear, practical guides to help travelers stay connected with eSIM technology. In my spare time, I enjoy car detailing, biking around Warsaw, and capturing portraits.

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