States That Don't Have State Sales Tax
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5 States With No State Sales Tax

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Forty-five states plus the District of Columbia impose a sales tax to raise revenue. In addition, local sales tax is collected in 38 states. The combined levy can be hefty. In Tennessee, for example, the average combined state and local sales tax is 9.47%, according to the Tax Foundation.

That means there are just five states with no state sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. But remember not to judge a state on its sales tax alone; money for roads and schools has to come from somewhere. New Hampshire, for example, has some of the highest real estate taxes in the country. And while Tennessee may have the country’s highest average sales tax, it doesn’t tax earned income at all. For each state, we’ve included a link to our full guide to state taxes to help you put these shopping destinations in perspective.

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Learn more about what you will really pay to live in the five states with no state sales tax.

SEE ALSO: The 10 Most Tax-Friendly States in the U.S. 2019

Income tax brackets are 2018 values. Property tax values are for 2017, the most recent data available. Learn more about our methodology here.

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States That Don't Have State Sales Tax | Slide 2 of 6

Alaska

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Overall Rating for Taxes: Most tax-friendly

Sales Tax: While the Last Frontier has no state sales tax (or else it wouldn’t be on this list), localities can levy sales taxes, which can go as high as 7.5%. But the statewide average is only 1.76%, according to the Tax Foundation. Sales taxes are generally charged in locations without real property taxes and vice versa.

Income Tax Range: No state income tax.

Property Taxes: In Alaska, residents pay an average of $1,234 in taxes per $100,000 of assessed home value.

For details on other state taxes, see the complete guide to taxes in Alaska.

SEE ALSO: 10 Tax Breaks for the Middle Class

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States That Don't Have State Sales Tax | Slide 3 of 6

Delaware

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Overall Rating for Taxes: Tax-friendly

State Sales Tax: Delaware has no state sales tax and no local sales taxes. In response, New Jersey has halved its sales tax on many items in Salem County, which borders Delaware.

Income Tax Range: Low: 2.2% (on taxable income from $2,001 to $5,000); High: 6.6% (on taxable income above $60,000).

Property Taxes: In Delaware, residents pay an average of $604 in taxes per $100,000 of assessed home value.

For details on other state taxes, see the complete guide to taxes in Delaware.

SEE ALSO: The Most-Overlooked Tax Breaks and Deductions

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States That Don't Have State Sales Tax | Slide 4 of 6

Montana

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Overall Rating for Taxes: Tax-friendly

State Sales Tax: No state sales tax, but some resort destinations such as Big Sky, Red Lodge and West Yellowstone have local sales taxes.

Income Tax Range: Low: 1% (on up to $3,000 of taxable income); High: 6.9% (on taxable income over $17,900). Montana permits filers to deduct some of their federal income tax.

Property Taxes: In Montana, residents pay an average of $892 in taxes per $100,000 of assessed home value.

For details on other state taxes, see the complete guide to taxes in Montana.

SEE ALSO: 10 Strangest Ways States Tax You (And Don’t)

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States That Don't Have State Sales Tax | Slide 5 of 6

New Hampshire

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Overall Rating for Taxes: Most tax-friendly

State Sales Tax: None.

Income Tax Range: New Hampshire doesn’t have an income tax. But there’s a 5% tax on dividends and interest in excess of $2,400 for individuals ($4,800 for joint filers).

Property Taxes: In New Hampshire, residents pay an average of $2,296 in taxes per $100,000 of assessed home value.

For details on other state taxes, see the complete guide to taxes in New Hampshire.

SEE ALSO: The Best Online Brokers, 2019

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States That Don't Have State Sales Tax | Slide 6 of 6

Oregon

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Overall Rating for Taxes: Not tax-friendly

State Sales Tax: None.

Income Tax Range: Low: 5% (on up to $3,450 of taxable income for single filers and up to $6,900 for married couples filing jointly); High: 9.9% (on taxable income over $125,000 for single filers and over $250,000 for married couples filing jointly). Residents can deduct some of their federal income tax from state taxable income.

Property Taxes: In Oregon, residents pay an average of $1,121 in taxes per $100,000 of assessed home value.

For details on other state taxes, see the complete guide to taxes in Oregon.

SEE ALSO: Claim These Tax Deductions Even If You Don’t Itemize

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