Which State in USA Has No Sales Tax? Tax-Free States in USA

  • Alaska
  • Delaware
  • Montana
  • New Hampshire
  • Oregon

Alaska, Delaware, Montana, New Hampshire, and Oregon are the five states that have no sales tax. Alaska has no state sales tax, although Juneau has a 5% local sales tax rate. Delaware has no sales tax and has the country’s seventh-lowest median property tax rate. The sales tax laws within the United States are controlled by each state. Sales taxes are imposed on retail transactions and certain services. Local municipalities and counties may impose surtaxes. For example, the sales tax rate in New York City is 8.875% due to additional taxes, on top of the 4% New York state sales tax.

As of 2023, five states including Alaska, Delaware, Montana, New Hampshire, and Oregon impose no state sales tax. However, some cities and towns in these states may levy income taxes, excise taxes, and tourist taxes. State sales tax rates range from 7.25% in California to 2.9% in Colorado. Besides the five states with no sales tax, 38 states allow counties, cities, and towns to add their own sales taxes to the state rate.

  • Alaska

The absence of state income tax in tax-free states has attracted individuals and businesses from high-tax states, who may choose to relocate in order to reduce their tax burden. This migration can lead to economic growth and increased competitiveness for tax-free states, as well as potential population growth and job opportunities. Important: Montana, New Hampshire, and Oregon are the only states that truly don’t impose any sales taxes or extra taxes that can trickle down to the consumer.

What US cities are tax-free? As of 2022, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming are the only states that do not levy a state income tax.

Living in a tax-free state means that residents do not need to pay state income taxes. This translates into more savings for residents. They can use this money to live a more comfortable life or invest in their future. States with the Highest and Lowest and No Sales Tax Rates – States With Lowest Local Sales Tax.

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