Five states have no statewide sales tax
Alaska, Delaware, Montana, New Hampshire, and Oregon do not charge a statewide sales tax. That means when you buy something in these states, you pay only the price on the tag — no additional percentage added at checkout.
This does not mean sales tax is zero everywhere in these states. Alaska allows cities and boroughs to charge local sales taxes, and some do. The other four states prohibit local sales taxes entirely, so residents and visitors pay no sales tax at any level of government.
The absence of sales tax does not mean these states collect no tax revenue. Most fund government services through income tax, property tax, or other sources. New Hampshire and Alaska have no state income tax either, which is why they are sometimes called "tax havens," but they make up the difference through other means.
Key Takeaways
- Alaska, Delaware, Montana, New Hampshire, and Oregon charge no statewide sales tax, though Alaska allows local jurisdictions to impose their own.
- The other 45 states and Washington, D.C. charge statewide sales tax ranging from roughly 4 percent to 7.25 percent, plus local add-ons that vary by county or city.
- No sales tax does not mean no state revenue — these five states use income tax, property tax, or other sources to fund services.
- If you live in a no-sales-tax state and buy something online from a seller in another state, you may owe use tax to your home state, though enforcement varies widely.
How Alaska's local sales taxes work
Alaska is the only no-sales-tax state that permits local governments to charge sales tax. About 90 cities and boroughs have adopted local sales taxes, ranging from 1 percent to 7.5 percent. Juneau, Anchorage, and Fairbanks all charge local sales tax, so shoppers there pay a combined rate even though there is no state tax.
If you live in an Alaskan community with no local sales tax — and many small towns have none — you pay nothing at the register. If you move to or visit Anchorage or another taxing jurisdiction, the local rate applies to most purchases.
This patchwork means the sales tax rate in Alaska depends entirely on where you are. Someone in Juneau pays 5 percent; someone 50 miles away in an unincorporated area pays zero. Always check the local rate before assuming you will pay no tax.
Why these five states chose not to tax sales
Each state arrived at no sales tax for different historical and economic reasons. Montana and Oregon were early to reject sales tax and have kept that policy for over a century. New Hampshire and Alaska have no income tax either, reflecting a broader philosophy against broad-based personal taxation. Delaware has no sales tax partly because its economy historically relied on corporate registration fees and other business taxes.
These decisions were made decades ago and are now embedded in state constitutions or long-standing law. Changing them would require legislative action or, in some cases, a constitutional amendment — a high bar that has prevented reversal even when state budgets tightened.
Sales tax rates in the other 45 states
Every other state charges a statewide sales tax. The rate ranges from about 4 percent (Colorado, Georgia, Hawaii, Louisiana, New York, Wyoming) to 7.25 percent (California, Tennessee). Most states fall between 5 and 6 percent.
On top of the state rate, most cities and counties add their own local sales tax. A purchase in Chicago is subject to Illinois state tax (6.25 percent) plus Cook County tax (1.25 percent) plus Chicago city tax (1.25 percent), totaling 8.75 percent. A purchase in rural Illinois may be only 6.5 percent. The combined rate — state plus local — can reach 10 percent or higher in some cities.
The table below shows the statewide rate for each state that charges sales tax. Local rates are not included because they vary by county and city.
| State | Statewide Sales Tax Rate |
|---|---|
| Alabama | 4% |
| Arizona | 5.6% |
| Arkansas | 6.5% |
| California | 7.25% |
| Colorado | 4% |
| Connecticut | 6.35% |
| Florida | 6% |
| Georgia | 4% |
| Hawaii | 4% |
| Idaho | 6% |
| Illinois | 6.25% |
| Indiana | 7% |
| Iowa | 6% |
| Kansas | 5.7% |
| Kentucky | 6% |
| Louisiana | 4% |
| Maine | 5.5% |
| Maryland | 6% |
| Massachusetts | 6.25% |
| Michigan | 6% |
| Minnesota | 6.875% |
| Mississippi | 7% |
| Missouri | 4.225% |
| Nebraska | 5.5% |
| Nevada | 6.85% |
| New Jersey | 6.625% |
| New Mexico | 5.125% |
| New York | 4% |
| North Carolina | 4.75% |
| North Dakota | 5% |
| Ohio | 5.75% |
| Oklahoma | 4.5% |
| Pennsylvania | 6% |
| Rhode Island | 7% |
| South Carolina | 7.5% |
| South Dakota | 4.2% |
| Tennessee | 7.25% |
| Texas | 6.25% |
| Utah | 4.85% |
| Vermont | 6% |
| Virginia | 5.3% |
| Washington | 6.5% |
| Washington, D.C. | 6% |
| West Virginia | 6% |
| Wisconsin | 5% |
| Wyoming | 4% |
Use tax: what you owe when you buy from out of state
If you live in a no-sales-tax state and buy something from an online retailer in another state, you may owe use tax to your home state. Use tax is a tax on goods you bring into your state or have shipped to you from elsewhere. It is meant to prevent people from avoiding sales tax by shopping out of state.
In theory, you owe use tax on most out-of-state purchases. In practice, enforcement is weak. Most people do not report use tax, and most states do not pursue individual buyers. Large online retailers like Amazon now charge sales tax in most states where they have a physical presence, which reduces the use tax gap.
If you live in Montana, New Hampshire, or Oregon and buy something online from a seller in California, you technically owe use tax to your home state on that purchase. The rate is usually the same as the sales tax rate in your state — but since your state has no sales tax, you owe nothing. Alaska and Delaware residents may owe use tax depending on local rules and the nature of the purchase, but again, enforcement is minimal for individual consumers.
Frequently Asked Questions
Do I pay sales tax if I live in one of these five states?
It depends on where you live within the state. In Montana, New Hampshire, and Oregon, you pay no sales tax anywhere. In Delaware, you pay no sales tax anywhere. In Alaska, you pay no state sales tax, but if you live in a city or borough that has adopted local sales tax, you pay that local rate.
Is it cheaper to live in a no-sales-tax state?
Not necessarily. These states fund government through other taxes. New Hampshire and Alaska have no income tax, which can offset the lack of sales tax. Montana, Oregon, and Delaware all charge income tax. When you factor in income tax, property tax, and other fees, the total tax burden may not be lower than in states with sales tax.
If I move to a no-sales-tax state, do I get a refund on sales tax I already paid?
No. Sales tax is paid at the time of purchase and is not refundable if you later move. If you bought something in a high-tax state and then moved to a no-sales-tax state, you do not recover the tax you already paid.
Do online retailers charge sales tax in no-sales-tax states?
Most large retailers do not charge sales tax on orders shipped to Alaska, Delaware, Montana, New Hampshire, or Oregon, because there is no state sales tax to collect. Some may charge local tax if you live in an Alaskan jurisdiction that has adopted local sales tax. Check the retailer's tax policy or your receipt to confirm.
Can these states add a sales tax in the future?
Technically yes, but it would require legislative action and, in some cases, a constitutional amendment. Montana and Oregon have constitutional provisions against sales tax that would be difficult to overturn. New Hampshire, Alaska, and Delaware have no constitutional barrier, but changing tax policy is politically difficult and has not happened despite budget pressures.