I’ve heard that some U.S. states don’t have a sales tax, but I’m not sure which ones. Can someone provide a list of states with no sales tax and explain how this affects consumers and businesses in those states?
Delaware is the only U.S. state with no state or local sales tax. Residents and visitors benefit from tax-free shopping, which makes the state attractive for businesses and consumers. Other states like Oregon, Montana, New Hampshire, and Alaska have no state sales tax but may allow limited local taxes.
Alaska, Delaware, Montana, New Hampshire and Oregon are the five U.S. states that do not levy a statewide sales tax. Individual municipalities may charge local sales tax in some areas, and property and income taxes may be higher in these states to offset the revenue loss.
Five U.S. states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, local jurisdictions in Alaska and Montana may impose their own sales taxes, while the others remain completely tax-free.