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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 9.46%, 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 shopper 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: Best States for Low Taxes: 50 States Ranked for Taxes, 2018

All data are for the 2018 tax year unless otherwise noted.

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