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States Without a Sales Tax

5 States that don't have a sales tax

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Updated April 16, 2014

Almost every state in the country has a sales tax, with rates ranging from from 8.75% in California to 4% in Hawaii.  Most states also allow local counties, cities, and municipalities to add on their own separate sales taxes to the state rate. 

There are only five states that do not have a sales tax:

  • Alaska
  • Delaware
  • Montana
  • New Hampshire
  • Oregon

Although Alaska does not have a state sales tax, it does allow localities to impose sales taxes, which range from 1% to 7%.  Delaware does not have a sales tax, but does impose a gross receipts tax on businesses that can be as high as 2.07% of the total receipts from goods sold and services rendered in the state.  This tax is generally not passed on to the consumer.

 

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