Which states have no sales tax?

Five US states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, Alaska allows local jurisdictions to levy their own sales taxes.

Does Alaska have sales tax?

Alaska has no statewide sales tax, but individual boroughs and municipalities can impose local sales taxes ranging from 1% to 7.5%.

What is the best state for avoiding sales tax?

New Hampshire, Oregon, Delaware, and Montana have no sales tax at the state or local level. Alaska has no state tax but some localities do charge local taxes.

5 States With No Sales Tax (2026) | Complete Guide

Five US states currently have no general statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. This means that in most of these states, you can purchase goods without paying any sales tax at all — though there are important exceptions and nuances worth understanding.

The Five Tax-Free States

Alaska

⚠️ Local taxes may apply

Alaska has no statewide sales tax, but it is unique among the tax-free states because it allows boroughs and municipalities to levy their own local sales taxes. Rates range from 1% to 7.5% in some areas. Anchorage has no local sales tax, but Juneau charges 5%. Always check the specific locality.

Delaware

Delaware has no sales tax at any level — state or local. This makes it a popular destination for tax-free shopping, particularly at outlets near the borders with neighboring states. Delaware instead relies on a gross receipts tax on businesses, which is not passed directly to consumers as a line-item tax.

Montana

Montana has no statewide sales tax and very few local taxes. However, some resort communities (like Big Sky and Red Lodge) charge a resort tax of up to 3% on lodging, restaurants, and certain retail sales. For most everyday purchases, Montana is completely tax-free.

New Hampshire

New Hampshire has no sales tax at any level. The state's motto — "Live Free or Die" — extends to its tax policy. There are no local option taxes either. New Hampshire relies primarily on property taxes and business taxes for revenue, giving it one of the highest property tax rates in the nation.

Oregon

Oregon has no statewide or local sales tax. It relies on income tax as its primary revenue source, which results in one of the highest income tax rates in the country (up to 9.9%). For shoppers, however, this means all purchases in Oregon are completely tax-free.

What This Means for Shoppers

If you live in or near a tax-free state, you can save significantly on large purchases. For example, buying a $1,000 laptop in Oregon saves you $80-100 compared to buying it in a state with an 8-10% sales tax. Many border residents regularly cross state lines for major purchases.

What This Means for Businesses

If your business is located in a tax-free state, you do not need to collect sales tax on in-state sales. However, if you sell into other states and meet their economic nexus thresholds, you must collect and remit sales tax in those states. The 2018 Supreme Court ruling in South Dakota v. Wayfair established that states can require out-of-state sellers to collect sales tax if they exceed certain sales volume thresholds.

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