Five states have no statewide sales tax at all

Alaska, Delaware, Montana, New Hampshire, and Oregon do not charge a statewide sales tax. If you live in or are moving to one of these states, you will not pay sales tax on most purchases at the register. However, the picture is more complicated than it first appears: some of these states tax specific goods, some allow cities to add their own sales tax, and neighboring states' rules can affect what you actually pay.

This matters because sales tax is often invisible until you reach the checkout, and moving to a no-sales-tax state can genuinely change your budget for groceries, clothing, and large purchases. It also matters if you buy online from out of state, because the rules about whether you owe tax depend on where you live and where the seller is based.

Key Takeaways

  • Alaska, Delaware, Montana, New Hampshire, and Oregon have no statewide sales tax, though some allow local taxes or tax specific items.
  • Alaska and Montana allow cities and counties to charge local sales tax even though the state does not, so your actual tax rate depends on your location within the state.
  • New Hampshire taxes meals and lodging but not most retail goods, and Delaware taxes no purchases at the point of sale but does tax some services.
  • If you buy online from a seller in another state, you may owe sales tax in your home state regardless of whether that state has a statewide sales tax.
  • Oregon and New Hampshire have no local sales tax options, so residents in those states pay zero sales tax on retail purchases anywhere in the state.

Alaska: No state tax, but local taxes vary by city

Alaska has no statewide sales tax, but cities and boroughs can and do charge their own. Anchorage, Juneau, Fairbanks, and many smaller towns have local sales taxes ranging from 0% to over 7%, depending on the municipality. If you live in Anchorage, you will pay sales tax; if you live in a borough that has not adopted a local tax, you will not.

The state also does not tax groceries, prescription drugs, or most clothing. Some municipalities have carved out their own exemptions on top of the state rule, so the specifics depend on where in Alaska you are located. Before moving or making a large purchase, check your city or borough's tax rate—the Alaska Department of Revenue website lists them by location.

Delaware: No sales tax on any retail purchase

Delaware charges no sales tax on retail goods, period. You can buy clothing, electronics, groceries, and furniture with no sales tax added. This is one of the cleanest no-tax situations in the country: there is no state tax, no local tax, and no exceptions that flip the rule on specific items.

Delaware does tax some services—car rentals, hotel rooms, and restaurant meals are subject to a 4% tax—but the everyday retail purchases most people think of as "shopping" are untaxed. This is why Delaware has historically attracted large retailers and why you will see credit card companies and financial firms headquartered there, though those are separate tax advantages.

Montana: No state tax, but cities can add local tax

Montana has no statewide sales tax, but cities and counties can adopt local sales taxes. Missoula, Billings, and other cities charge local taxes ranging from 0% to around 3%. Like Alaska, your actual tax rate depends on your municipality, not the state as a whole.

Montana also exempts groceries and prescription drugs from any tax that does exist. If you are moving to Montana or buying something there, check whether your city has a local sales tax and what rate it charges. The Montana Department of Revenue provides a local tax lookup by city.

New Hampshire: No sales tax, but meals and lodging are taxed

New Hampshire has no sales tax on retail goods—no tax on clothing, electronics, or groceries. However, the state taxes meals at restaurants and prepared foods at 9%, and lodging (hotel rooms) at 9% as well. This is why New Hampshire residents often cross into Massachusetts or Vermont to buy clothes and electronics, but pay tax if they eat out.

There is no local sales tax in New Hampshire, so the state rate is the only one you encounter. If you live in New Hampshire, you will pay zero tax on most purchases but should expect to pay tax on dining and overnight stays.

Oregon: No sales tax on anything, anywhere in the state

Oregon has no statewide sales tax and no local sales tax. Anywhere in Oregon—Portland, Eugene, rural counties—you pay zero sales tax on retail purchases. Oregon also does not tax groceries, clothing, or any other goods.

Oregon does tax some services, including certain professional services and utilities, but the everyday retail purchases that most people associate with "sales tax" are completely untaxed. This makes Oregon one of the most straightforward no-tax states for shoppers.

Online purchases and tax obligations in no-sales-tax states

If you live in a no-sales-tax state and buy from an online retailer in another state, whether you owe sales tax depends on the seller's location and the current rules. Most large online retailers now collect sales tax based on the buyer's address, regardless of where the seller is located. This means that even if you live in Oregon or New Hampshire, you may still pay sales tax on an online purchase if the retailer collects it.

Some smaller sellers do not collect sales tax on out-of-state purchases. In those cases, you may technically owe "use tax" to your home state—a tax on goods you bought elsewhere and brought into the state. However, use tax is rarely enforced for individual purchases. The practical effect is that living in a no-sales-tax state still saves you money on online shopping, because many smaller sellers do not collect tax, whereas in a sales-tax state, most do.

Frequently Asked Questions

If I move to Alaska or Montana, will I definitely pay no sales tax?

Not necessarily. Both states allow cities and counties to charge local sales tax even though the state does not. You will pay zero tax only if your specific city or county has not adopted a local tax. Check your municipality's rate before moving or making large purchases.

Does New Hampshire tax groceries?

No. New Hampshire taxes meals at restaurants and prepared foods, but not groceries you buy at a supermarket to cook at home. Prescription drugs are also untaxed.

Can I save money by buying in a no-sales-tax state and bringing items home?

Technically, you may owe use tax in your home state on items you bought elsewhere. In practice, use tax is rarely enforced for individual purchases. However, if you are buying something very expensive, check your state's rules—some states do pursue use tax on large items like vehicles or furniture.

Do all five no-sales-tax states have the same rules?

No. Delaware has the cleanest rule: no sales tax on anything retail. New Hampshire taxes meals and lodging. Alaska and Montana allow local taxes. Oregon has no local tax but does tax some services. Check the specific state's rules before assuming you will pay zero tax.

If I buy online from a seller in a sales-tax state, do I owe tax in my no-sales-tax state?

Most large retailers now collect sales tax based on your address, so you will likely pay tax even though you live in a no-sales-tax state. Smaller sellers may not collect it, in which case you may technically owe use tax to your state, though this is rarely enforced for individual purchases.