Five U.S. states had no general statewide sales tax in the 2026 state-rate data used for this article: Alaska, Delaware, Montana, New Hampshire, and Oregon. They are often described as “no sales tax” states, but that label needs a key qualification.
“No statewide sales tax” does not mean every purchase, service, rental, or local transaction is tax-free. Alaska is the clearest example: municipalities can impose local sales taxes. Special taxes, use tax, lodging taxes, excise taxes, business taxes, and taxes on particular goods can follow separate rules.
If you are comparing states before a purchase or a move, check the tax at the actual address and for the specific item. A general state list is a starting point, not a receipt calculation or a filing answer.
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The Five States Without a Statewide Sales Tax
Alaska
Alaska does not levy a state sales tax, according to the State of Alaska Office of the State Assessor. Several local municipalities levy sales taxes; the state directs businesses to contact the relevant local government for rules and forms.
Local structure can include both city and borough taxes. Local governments decide what is taxable within their ordinances, subject to state-law limits.
Delaware
Delaware has no state or local sales tax. Instead, it levies a gross receipts tax on the seller of goods and services, measured by gross receipts, with no deductions for the cost of goods or services.
Rates range from 0.0945% to 1.9914% depending on the business activity, with petroleum products up to 2.4218%.
Montana
A local resort tax of up to 3% can apply in designated resort communities in Montana. Local voters must approve the tax, and the community must have a tourism-based economy.
An incorporated community must have a population under 5,500, and an unincorporated area must have a population under 2,500. At least 5% of resort tax revenue must be used to offset municipal property taxes.
New Hampshire
New Hampshire levies a Meals and Rentals Tax of 8.5% on patrons of restaurants and hotels, on meals, alcohol and rooms, and on motor vehicle rentals, under RSA 78-A.
Operators need an M and R Tax Operator’s License, and must file monthly by the 15th. Operators may take a 3% commission if they file and pay on time and keep the required records. Short-term rentals are taxable even for a one-day rental.
Oregon
Oregon levies a Corporate Activity Tax (CAT) under ORS Chapter 317A on the privilege of doing business in Oregon, measured on commercial activity. It is neither a transactional sales tax nor an income tax, and it applies to tax years beginning on or after January 1, 2020.
Businesses must register within 30 days of reaching $750,000 of Oregon commercial activity. Only businesses with more than $1,000,000 of taxable Oregon commercial activity have a payment obligation, and the tax is $250 plus 0.57% of Oregon taxable commercial activity over $1,000,000, after a 35% subtraction based on the greater of cost inputs, which are cost of goods sold, or labor costs.
Alaska Can Still Have Local Sales Tax
Alaska differs from the other four states because local municipalities can impose sales taxes. Cities and boroughs may enact local sales-tax ordinances and determine what is taxable under local rules.
The rate can depend on the community where the purchase happens or where the item is used. A buyer in one Alaskan municipality may face a different local rate than a buyer in another municipality.
Alaska also has local use-tax rules. A use tax can apply when goods are bought outside a taxing authority’s jurisdiction and then brought into that jurisdiction. The use tax generally equals the local sales-tax rate and is levied under applicable local law.
For businesses, do not assume a single Alaska state filing covers every local obligation. The proper filing form may come from the local municipality where the transaction occurred.
What No Statewide Sales Tax Actually Means
It describes a state-level retail tax, not every charge
A state list normally answers whether a state levies a broad general sales tax at the state level. It does not classify every item, service, rental, admission, vehicle transaction, or local fee. A purchase may involve another tax even when the state has no general retail sales tax.
Local taxes can change the result
Alaska is the main example. Local governments can levy a sales tax even though the state does not. Similar local-versus-state distinctions matter in other places when a page says “no statewide tax” but local jurisdictions still impose taxes.
Use tax can still matter
Use tax generally applies to taxable goods or services bought without sales tax and then stored, used, or consumed in a taxing jurisdiction. If you buy an item in a no-sales-tax state and take it to another state, the destination state’s use-tax rules may apply. Do not assume the original state’s lack of sales tax ends the analysis.
Special taxes are separate questions
Lodging, rental, fuel, tobacco, vehicle, telecommunications, and other charges can have their own rules. These should not be folded into a general “sales tax free” claim without a source for the exact transaction.
Taxability still matters
An exempt food item, a taxable service, and a business equipment purchase may receive different treatment. The absence of a general state sales tax does not remove the need to ask what was bought, where it was used, and who bought it.
How to Check Tax Before a Purchase
Start by identifying the state and local address involved. For an online order, keep the delivery address and the tax line from checkout. For a business purchase, keep the invoice, seller information, item description, exemption document, and intended use.
Then ask these questions:
- Does the state have a general statewide sales tax?
- Does the local city, borough, county, or municipality impose a tax?
- Is the item, service, or rental taxable?
- Was sales tax already collected by the seller or marketplace?
- Could use tax apply where the item is stored, used, or consumed?
- Are there special rules for a vehicle, lodging, digital product, or business purchase?
- What is the date of the rate table or official source?
Use official state or local government sources whenever possible. The Tax Foundation’s table is useful for broad state comparison, but it notes that local rates vary and that its local figures are population-weighted averages. An average cannot replace a local lookup.
Compare the full purchase cost
A state comparison should include more than the sales-tax line. Add shipping, delivery charges, local fees, lodging or rental charges, fuel costs, and the cost of traveling to another state. A lower tax rate may not reduce the total if the trip, shipping, or other charge costs more than the tax difference. For an online order, compare the checkout total and the delivery destination rather than the seller’s headline price.
Keep a simple record of the date, seller, item, delivery or use location, amount paid, and tax collected. That record helps separate a purchase made in a no-statewide-tax state from a later use-tax question in another state. When the amount is material, review the current state or local source for the actual transaction before deciding how to report it.
If the exact purchase total already includes tax and you know the correct rate, a reverse sales tax calculation can help separate the pre-tax amount. It cannot decide whether a purchase is taxable or whether another state’s use tax applies.
Common Questions About No-Sales-Tax States
Which five states have no statewide sales tax?
Alaska, Delaware, Montana, New Hampshire, and Oregon have no general statewide sales tax in the 2026 state-rate data.
Is Alaska completely tax-free?
No. Alaska has no state sales tax, but several local municipalities impose sales taxes. Check local rules, forms, and taxable items with the relevant municipality.
Are Delaware, Montana, New Hampshire, and Oregon free of every tax?
No. The phrase refers only to a general statewide sales tax. Other state, local, special, business, rental, or transaction taxes may still apply.
Can I avoid use tax by buying in a no-sales-tax state?
Not necessarily. If an item is bought without sales tax and then used in another state, the destination state’s use-tax rule may apply. Check the state where the item is stored or used.
Does a no-sales-tax state always have lower total costs?
No. The final cost depends on price, shipping, local taxes, fees, income or property taxes, travel, and the item itself. Sales tax is only one part of the total cost.
How do I check Alaska’s local sales tax?
Contact the local municipality or use the State of Alaska’s tax-jurisdiction resources. Official guidance indicates local governments provide their own rules and forms.
Can an online purchase still create a tax question?
Yes. The delivery address, seller, marketplace, item, and tax collected can matter. Keep the checkout record and check the state or local source for the destination.
The five-state list is useful for comparison, but the safe way to review a purchase is to check the actual item, address, and current local rule. Start with the state list, then verify the transaction before relying on the final price.
