States Without Sales Tax in 2026
Last updated: April 2026
Researched by the NexusFlag Research Team
Five US states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Businesses based in these states do not need to collect sales tax on in-state sales. However, online sellers based in no-sales-tax states may still have economic nexus obligations in other states where they exceed revenue or transaction thresholds.
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Alaska
No statewide sales tax — but local taxes apply in many cities
Alaska has no statewide sales tax, but over 100 municipalities impose local sales taxes ranging from 1% to 7.5%.
Alaska is the only state with no statewide sales tax and no state income tax. That does not mean Alaska is a sales-tax-free zone, however. More than 100 municipalities in Alaska levy their own local sales taxes, with rates running from 1% up to approximately 7.5% in some jurisdictions. Juneau charges 5%. Anchorage, the state's largest city, charges no local sales tax — but neighboring municipalities do.
Alaska joined the Streamlined Sales Tax (SST) project as an associate member. The Alaska Remote Seller Sales Tax Commission (ARSSTC) allows participating municipalities to require remote sellers to collect local taxes once they exceed $100,000 in sales into Alaska or complete 200 or more transactions into the state.
If your customers are in Juneau, Fairbanks, or other taxing municipalities, you may have a local collection obligation even though there is no state-level tax.
Delaware
No sales tax at any level — but businesses pay a Gross Receipts Tax
Delaware has no sales tax and no local sales taxes. Delaware does impose a Gross Receipts Tax on businesses, but this is not charged to consumers.
Delaware has no sales tax whatsoever — no state rate, no county rate, no city rate. Consumers do not pay sales tax on any purchase made in Delaware, and remote sellers shipping into Delaware have no sales tax collection obligation.
Delaware is well-known as a business incorporation hub because of its favorable corporate laws and Court of Chancery. The absence of sales tax is sometimes cited as a benefit for businesses headquartered there, though federal nexus rules mean that incorporation in Delaware does not eliminate sales tax obligations in other states where you sell.
Delaware does impose a Gross Receipts Tax on the privilege of doing business in the state. This tax is paid by the business, not the consumer — it does not appear on a customer's receipt and is not a sales tax. Rates range from 0.1% to 1.9912% depending on the industry.
Montana
No sales tax — resort communities levy a narrow Resort Tax
Montana has no statewide or local sales tax. Some resort areas like Big Sky, Red Lodge, and West Yellowstone impose a Resort Tax up to 3% on accommodations and luxury goods.
Montana has no statewide sales tax and no general local sales taxes. For most purchases, buyers in Montana pay no sales tax at all. Remote sellers shipping into Montana have no sales tax collection obligation.
Montana allows certain resort communities to impose a Resort Tax on specific categories of purchases. Big Sky, Red Lodge, and West Yellowstone are among the communities with an active Resort Tax. The Resort Tax applies to accommodations, alcoholic beverages, and certain luxury goods — not to general merchandise. The maximum rate is 3%.
Montana is the most straightforward of the five no-sales-tax states for online retailers: if you are shipping physical goods to Montana addresses, you almost certainly have no sales tax obligation.
New Hampshire
No general sales tax — Meals & Rooms Tax covers prepared food and lodging
New Hampshire has no general sales tax. The state does impose an 8.5% Meals & Rooms Tax on prepared food, hotel rooms, and vehicle rentals.
New Hampshire has no general sales tax on goods. Retailers selling physical products to New Hampshire customers have no sales tax collection obligation, and there are no local sales taxes in the state either.
New Hampshire does levy an 8.5% Meals & Rooms Tax (MRT) on prepared food and non-alcoholic beverages sold at restaurants, hotel rooms and lodging, and short-term vehicle rentals. This is a narrow tax that applies to specific service categories — not a general sales tax on merchandise.
New Hampshire is one of only two states with neither a general sales tax nor a personal income tax (Alaska is the other). That combination makes it distinctive from the other no-sales-tax states.
Oregon
No sales tax of any kind — the cleanest no-tax state for online sellers
Oregon has no state or local sales tax. Oregon is the only state among the five that has no sales tax of any kind and no exceptions.
Oregon has no state sales tax and no local sales taxes. There are no exceptions, no Resort Taxes, no local jurisdictions with their own rates. Oregon is the most straightforward no-sales-tax state in the country.
Remote sellers shipping into Oregon have no sales tax collection obligation of any kind. Customers in Portland, Eugene, Salem, and every other Oregon city pay no sales tax on any purchase.
Oregon funds its government primarily through income taxes — the state has one of the higher income tax rates in the country, with a top marginal rate of 9.9%. But for sales tax purposes, Oregon sellers and buyers operate in a zero-rate environment.
What this means for online sellers
Based in a no-tax state? You still owe sales tax in other states.
An Oregon business selling $150,000 worth of products to California customers owes California sales tax, full stop. Economic nexus is triggered by sales volume into a state — not by where your company is based. The five no-sales-tax states only exempt sellers from collecting tax on sales made within those states.
Selling into a no-tax state? No sales tax to collect.
If your customers are in Delaware, Montana, Oregon, or most parts of New Hampshire, you collect zero sales tax on those orders regardless of your total sales volume there. These states have no economic nexus for sales tax purposes because there is no sales tax to collect.
Common misconception: "I am in Oregon so I do not need to worry about sales tax."
This is wrong. If you sell to customers in California, Texas, New York, Florida, or any other sales-tax state where you have crossed the economic nexus threshold, you must register and collect sales tax in those states. Your Oregon address is irrelevant to your obligations in other jurisdictions.
States with no income tax (a separate list)
Nine states have no personal income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. This list is different from the no-sales-tax list. Only Alaska and New Hampshire appear on both — no statewide sales tax and no personal income tax.
Texas, Nevada, Washington, and Florida all have zero income tax but do impose sales taxes — Texas at 6.25%, Nevada at 6.85%, Washington at 6.5%, and Florida at 6%. When evaluating a state for relocation or business registration, it is worth looking at both the sales tax environment and the income tax environment separately.
Side-by-side comparison
| State | Sales Tax? | Local Tax? | Income Tax? | Special Taxes |
|---|---|---|---|---|
| Alaska | No | Yes — municipal rates 1%–7.5% | No | — |
| Delaware | No | No | Yes | Gross Receipts Tax (business only) |
| Montana | No | No (Resort Tax in some areas) | Yes | Resort Tax up to 3% |
| New Hampshire | No | No | No | Meals & Rooms Tax 8.5% |
| Oregon | No | No | Yes | None |
Even in a no-tax state, you may owe sales tax elsewhere.
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Frequently asked questions
Which states have no sales tax?
Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. Of these five, Delaware and Oregon have no sales tax of any kind at any level. Alaska allows municipalities to impose local sales taxes. Montana permits Resort Taxes in certain resort communities. New Hampshire levies a Meals & Rooms Tax on restaurants and hotels.
Does Alaska really have no sales tax?
Alaska has no statewide sales tax, but that does not mean Alaska is entirely sales-tax-free. Over 100 Alaska municipalities levy their own local sales taxes, with rates ranging from 1% to 7.5%. Additionally, the Alaska Remote Seller Sales Tax Commission allows participating municipalities to require remote sellers to collect local taxes once they cross $100,000 in sales or 200 transactions into the state. Sellers shipping into Juneau, Ketchikan, or other taxing municipalities should verify their local obligations.
Do I still need to collect sales tax if my business is in Oregon?
Oregon has no sales tax, so you do not collect sales tax on sales to Oregon customers. However, if your Oregon-based business sells to customers in California, Texas, New York, or any other sales-tax state where you have economic nexus, you are required to collect sales tax on those out-of-state sales. Being based in Oregon does not eliminate your nexus obligations in other states. Economic nexus is triggered by sales volume into a state — not by where your business is located.
What is the difference between no sales tax and no income tax?
Sales tax and income tax are two separate taxes. Sales tax is collected at the point of purchase on goods and some services. Income tax is levied on wages, profits, and investment income. A state can have one without the other. For example, Texas has no income tax but does have a 6.25% state sales tax. Delaware has no sales tax but does have a state income tax. Only Alaska and New Hampshire appear on both lists — neither state has a general sales tax nor a personal income tax.
Can I avoid sales tax by incorporating in Delaware?
No. Incorporating in Delaware does not eliminate your sales tax obligations in other states. Sales tax nexus is determined by where you make sales and how much you sell there — not by where your business is legally registered. If your Delaware-incorporated business sells $200,000 worth of products to California customers, you have economic nexus in California and must collect California sales tax regardless of your incorporation state.
Do any states have no sales tax AND no income tax?
Yes — two states have neither a general sales tax nor a personal income tax: Alaska and New Hampshire. Alaska has no statewide sales tax (though municipalities can impose local taxes) and no income tax. New Hampshire has no general sales tax and no income tax on wages or salaries, though the state does tax interest and dividend income at 3%. Wyoming and Florida have no income tax but do have sales taxes.
Disclaimer: NexusFlag provides informational data about sales tax rules — not tax advice. State and local tax laws change frequently. Always verify current requirements with each state's Department of Revenue or a qualified sales tax professional before making compliance decisions.