Five US states charge zero state-level sales tax, making them attractive for major purchases. But the story isn't quite that simple — local taxes and other fees may still apply, and each state compensates for the missing revenue in different ways.
The 5 Sales-Tax-Free States in 2026
1. Alaska (0% State Sales Tax)
Alaska has no statewide sales tax, but it is the most complicated of the five states because local jurisdictions — cities and boroughs — are free to impose their own sales taxes. In fact, many Alaskan municipalities do charge local sales taxes ranging from 1% to 7.5%. For example, Juneau charges a 5% local sales tax, and Ketchikan charges 5.5%. If you're shopping in a city, always check the local rate. If you're in a remote area or an unincorporated region, you may truly pay zero sales tax.
2. Delaware (0% Sales Tax)
Delaware has no sales tax at any level — no state tax, and local governments cannot impose one either. This makes Delaware a true sales-tax-free shopping destination. It's one of the main reasons why Delaware has a robust outlet mall shopping industry, and why many people from nearby states like New Jersey, Pennsylvania, and Maryland drive to Delaware for major purchases like electronics, appliances, and clothing. Delaware compensates by having higher corporate franchise taxes, which is also why a large proportion of US corporations are incorporated there.
3. Montana (0% Sales Tax)
Montana levies no general sales tax. However, the state does impose specific taxes on certain goods and services, including a 4% accommodations tax and a 4% car rental tax. Montana also has a resort tax in specific tourist communities — Whitefish, Big Sky, and West Yellowstone — of up to 3%. But for everyday retail purchases of goods, you pay zero sales tax in Montana.
4. New Hampshire (0% Sales Tax)
New Hampshire has no general sales tax and makes this a point of state pride. The state motto "Live Free or Die" extends to taxation policy. New Hampshire does charge a 9% meals and rentals tax on prepared food, alcohol served at restaurants, and hotel stays. It also has a tax on tobacco products and motor vehicle rentals. But clothing, electronics, appliances, furniture, and most retail goods are completely tax-free.
5. Oregon (0% Sales Tax)
Oregon has no sales tax and does not allow local municipalities to add one. It is one of the cleanest sales-tax-free jurisdictions in the country. However, Oregon has relatively high personal income tax rates (up to 9.9%) as a trade-off. Portland, Oregon introduced a 1% arts tax in 2012, but this is an income tax, not a sales tax. For shopping purposes, Oregon is straightforwardly tax-free on retail goods.
What These States Charge Instead
States without sales tax still need revenue. Here's how they make it up:
- Higher income taxes — Oregon (up to 9.9%) and Montana (up to 6.75%)
- Higher property taxes — New Hampshire has some of the highest property taxes in the nation
- Corporate taxes and franchise fees — Delaware relies heavily on these
- Excise taxes on specific goods — All five states tax alcohol, tobacco, and gasoline
Is It Worth Driving to a No-Tax State?
For large purchases, it can be. If you're buying a $2,000 laptop in California (7.25% base + local tax), you could pay $145–$200+ in sales tax. Buying the same laptop in Oregon saves you that entire amount. For smaller purchases, the fuel cost and time make the trip impractical. A rough rule: the trip is worth it if your sales tax savings exceed the cost of the drive.
Use the Calculator for Your State
If you're shopping in a state that does charge sales tax, use our reverse sales tax calculator to see exactly how much of your total went to tax. We have current 2026 rates for all 50 states.