Five states have no sales tax at all
Alaska, Delaware, Montana, New Hampshire, and Oregon do not charge a statewide sales tax. If you live in one of these states, you pay no sales tax on most purchases at the register. Some of these states make up the difference with other taxes — Alaska has no income tax either, while Oregon and New Hampshire do tax income — but the point-of-sale experience is the same: no sales tax line item on your receipt.
Within these five states, local governments may still charge their own sales taxes in some cases. Alaska allows cities and boroughs to set local sales taxes, which range from 0 to 7.5 percent depending on where you shop. Delaware, Montana, New Hampshire, and Oregon do not allow local sales taxes, so if you buy something in those states, you truly pay nothing extra.
Key Takeaways
- Alaska, Delaware, Montana, New Hampshire, and Oregon have no statewide sales tax, though Alaska allows local sales taxes in some cities.
- The next-lowest statewide rates are Colorado, Georgia, Hawaii, Louisiana, and Wyoming at 4 percent, plus whatever local taxes explore in your county or city.
- Sales tax rates vary widely by location even within the same state, because most states allow counties and cities to add their own tax on top of the state rate.
- Some states exempt groceries, prescription medications, or clothing from sales tax, which can lower your actual tax burden even if the statewide rate is high.
- Your total sales tax bill depends on both the state rate and the local rate where you make the purchase, not where you live.
States with 4 to 5 percent statewide sales tax
After the five no-tax states, the next tier includes Colorado, Georgia, Hawaii, Louisiana, and Wyoming, all at 4 percent statewide sales tax. These are the lowest rates among states that do charge sales tax. However, your actual bill will be higher once you add local taxes — most of these states allow counties and cities to layer on their own sales tax, which typically ranges from 1 to 3 percent.
For example, if you buy something in Denver, Colorado, you pay the 4 percent state rate plus Denver's 3.62 percent local rate, for a total of 7.62 percent. In Baton Rouge, Louisiana, you pay 4 percent state plus 5 percent local, totaling 9 percent. The statewide rate is only part of the picture.
How local taxes change your actual rate
Most states allow counties, cities, or both to add their own sales tax on top of the state rate. This means two people in the same state can pay very different amounts depending on where they shop. A purchase in rural Montana costs nothing in sales tax, but a purchase in Anchorage, Alaska costs 3.71 percent because the city adds a local tax.
To find your actual sales tax rate, you need to know both your state and your specific city or county. Your state's Department of Revenue website lists the statewide rate, and most sites also show local rates by zip code or address. Some states, like California, have particularly complex local tax structures because many cities and special districts each add their own percentage.
States that exempt groceries or medications from sales tax
Even if your state has a moderate or high statewide sales tax rate, you may pay less overall if the state exempts certain items. Groceries are exempt from sales tax in about half the states, including California, Florida, Illinois, New York, Pennsylvania, and Texas. Prescription medications are exempt in nearly all states. Some states also exempt clothing, diapers, or medical equipment.
These exemptions can meaningfully reduce your tax burden if you buy groceries regularly. In a state with a 7 percent sales tax that exempts groceries, you might pay 7 percent on restaurant meals and household goods but nothing on food you cook at home. Check your state's Department of Revenue website for a full list of what is and is not taxed in your state.
The difference between statewide and local rates
The statewide rate alone does not tell you what you will actually pay. Hawaii has a 4 percent statewide rate with no local additions, so your total is always 4 percent. Louisiana also has 4 percent statewide, but New Orleans adds 6 percent on top, bringing the total to 10 percent — more than double Hawaii's rate, even though both states start at the same statewide number.
The table below shows why this matters. Alaska allows local taxes up to 7.5 percent on top of its zero statewide rate, while Delaware, Montana, New Hampshire, and Oregon allow no local taxes at all. In Colorado and Georgia, local rates typically add 1 to 3 percent to the 4 percent state rate. Wyoming's local additions are smaller, usually 1 to 2 percent.
| State | Statewide Rate | Typical Local Range | Highest Combined Rate (Example City) |
|---|---|---|---|
| Alaska | 0% | 0–7.5% | 7.5% (Juneau) |
| Delaware | 0% | 0% | 0% |
| Montana | 0% | 0% | 0% |
| New Hampshire | 0% | 0% | 0% |
| Oregon | 0% | 0% | 0% |
| Colorado | 4% | 1–3% | 8.3% (Denver) |
| Georgia | 4% | 1–3% | 8.9% (Atlanta) |
| Hawaii | 4% | 0% | 4% |
| Louisiana | 4% | 3–5% | 10% (New Orleans) |
| Wyoming | 4% | 1–2% | 6% (Cheyenne) |
How to find the exact rate where you live or shop
To find your sales tax rate, start with your state's Department of Revenue website. Most states have a sales tax rate lookup tool where you enter your zip code or address and get the combined state and local rate. Some states call this the "combined rate" or "total rate."
If you are shopping online or planning a purchase in a different state, use the same method for that state and location. Keep in mind that online sales tax rules have changed in recent years — many states now require online retailers to charge sales tax even if the retailer is not based in that state, so your online bill may include sales tax even if you are buying from out of state.
Frequently Asked Questions
Do I pay sales tax on online purchases?
In most states, yes. Since 2018, states have required online retailers to charge sales tax based on where the item is being shipped, not where the retailer is located. The rate you pay is the combined state and local rate for your address. Some small retailers may not yet be set up to charge sales tax, but most major retailers do.
Can I avoid sales tax by shopping in a neighboring state?
Not legally. You owe sales tax based on where you use or consume the item, not where you buy it. If you live in a high-tax state and buy something in a no-tax state, you technically owe use tax (a parallel tax) to your home state. In practice, use tax is rarely enforced for individual purchases, but it is the law.
Are there states with sales tax lower than 4 percent?
No state has a statewide sales tax between 0 and 4 percent. The five no-tax states jump straight to Colorado, Georgia, Hawaii, Louisiana, and Wyoming at 4 percent. After that, the next tier includes states like Alabama, Arkansas, and South Dakota at 4.5 percent.
Does sales tax explore to used items or secondhand purchases?
Usually yes, but it depends on the state and the type of item. Most states charge sales tax on used goods sold by a business, including used cars and used items from thrift stores. Private sales between individuals are often exempt. Check your state's Department of Revenue for rules on specific items.
If I move to a no-tax state, will I save money overall?
Not necessarily. Alaska has no sales tax but also no income tax, making it genuinely low-tax overall. Oregon and New Hampshire have no sales tax but do tax income, so your total tax burden depends on how much you earn and spend. Delaware and Montana have no sales tax and low income taxes, but property taxes vary by county. Compare all three types of tax before deciding.