Planning a big purchase, a move or an online store, and wondering where you can skip sales tax altogether? Only a handful of states with no sales tax exist, and at least two of them still have local or special taxes that can surprise you at checkout. Here is the complete list, how each state works in 2026, and the states with the lowest rates if you cannot avoid sales tax entirely.
Key takeaways
- Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon.
- Alaska lets cities and boroughs charge local sales tax, and some Montana resort towns charge a resort tax.
- New Hampshire taxes restaurant meals and lodging at 8.5%.
- Buying in a no-sales-tax state does not always avoid tax at home: your own state may charge use tax.
The 5 States With No Sales Tax
| State | Statewide sales tax | Local sales tax | What to watch for |
|---|---|---|---|
| Alaska | None | Yes, in many cities and boroughs | Local rates such as 5% in Juneau and 7% in Kodiak; some are seasonal |
| Delaware | None | None | Businesses pay a gross receipts tax, not charged to buyers as sales tax |
| Montana | None | Resort tax in some communities | Resort taxes of up to 3% in places such as Big Sky, Whitefish and West Yellowstone |
| New Hampshire | None | None | 8.5% Meals and Rooms (Rentals) Tax on restaurants, lodging and car rentals |
| Oregon | None | None | Vehicle use tax on certain new vehicles bought outside the state |
Alaska: No State Sales Tax, but Local Sales Tax
Alaska has no statewide sales tax, but it is the only state on this list where local governments commonly charge a general sales tax. Juneau charges 5%, Kodiak and Wrangell charge 7%, and cities inside the Kenai Peninsula Borough add the borough’s 3% to their own rate. Several communities, including Ketchikan and Sitka, use higher summer rates and lower winter rates. Anchorage, the largest city, has no general sales tax.
Remote sellers collect local Alaska sales tax through the Alaska Remote Seller Sales Tax Commission. See current rates on our Alaska sales tax page.
Delaware: Truly Tax-Free Shopping
Delaware has no state or local sales tax, which makes it a popular shopping destination for residents of nearby states. Instead, businesses pay a gross receipts tax on their total sales. That tax is paid by the seller and is not added to your receipt as sales tax.
Montana: No Sales Tax, Except in Resort Areas
Montana has no general sales tax. However, small resort communities can adopt a local resort tax of up to 3% on certain goods and services, such as lodging, restaurant meals and luxury items. If you are buying in Big Sky, Whitefish or West Yellowstone, expect to see it on some receipts.
New Hampshire: No Sales Tax on Goods
New Hampshire does not charge sales tax on goods, which is why shoppers from Massachusetts often cross the border for large purchases. The state does charge an 8.5% Meals and Rooms (Rentals) Tax on restaurant meals, hotel stays and motor vehicle rentals.
Oregon: No Sales Tax at All
Oregon has no general sales or use tax, state or local. The main exception is a vehicle use tax that applies to certain new vehicles purchased outside Oregon. Retailers in Portland and other Oregon cities do not add sales tax at checkout.
States With the Lowest Sales Tax Rates
If you live outside these five states, the next best option is a state with a low statewide rate. Keep in mind that local tax jurisdictions usually add to these rates.
| State | Statewide rate | Local taxes added? |
|---|---|---|
| Colorado | 2.9% | Yes, often significant |
| Alabama | 4% | Yes |
| Georgia | 4% | Yes |
| Hawaii | 4% (General Excise Tax) | Yes, 0.5% county surcharge in most counties |
| New York | 4% | Yes |
| Wyoming | 4% | Yes |
A low state rate does not always mean a low combined rate. Denver’s combined rate, for example, is 9.15% even though Colorado’s state rate is only 2.9%. Check the exact rate on our sales tax rates by state pages.
Can You Avoid Sales Tax by Shopping in a No-Tax State?
Sometimes, but not always. If you buy an item in a state with no sales tax and bring it home to a state that has one, your home state may expect you to pay use tax at its own rate. This matters most for expensive items, especially vehicles, boats and equipment that must be registered, because the state collects use tax when you title or register them.
Online orders shipped to your home are taxed at your address, not the seller’s, so buying from a retailer based in Oregon or Delaware will not avoid sales tax if you live elsewhere.
Conclusion
The five states with no sales tax are Alaska, Delaware, Montana, New Hampshire and Oregon, but only Delaware and Oregon come close to fully tax-free shopping. Alaska has local sales taxes, Montana has resort taxes, and New Hampshire taxes meals and lodging. For everywhere else, use our sales tax calculator to find the exact rate before you buy.
Frequently Asked Questions
Which states have no sales tax?
Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax. Alaska allows local sales taxes, and some Montana resort communities charge a resort tax.
Does Alaska have sales tax?
Alaska has no state sales tax, but many cities and boroughs charge their own local sales tax, such as 5% in Juneau and 7% in Kodiak. Some rates change by season.
Is New Hampshire tax-free?
New Hampshire has no sales tax on goods, but it charges an 8.5% Meals and Rooms (Rentals) Tax on restaurant meals, lodging and motor vehicle rentals.
Do I pay sales tax if I buy something in Oregon and take it home?
Oregon will not charge sales tax, but your home state may require you to pay use tax on the item, especially if it is a vehicle or another item you must register.
Which state has the lowest sales tax rate?
Among states that have a sales tax, Colorado has the lowest statewide rate at 2.9%, although local taxes raise the combined rate in most Colorado cities.