Which states have no sales tax?
Five states have no statewide sales tax, which are Alaska, Delaware, Montana, New Hampshire and Oregon. Alaska lets local governments charge one, and many do. Being based in one of these states doesn't excuse you from collecting tax in other states where you have nexus.
Updated November 2026 · By Pankil Kumar, Managing Partner
Quick facts
- No state tax. Alaska, Delaware, Montana, New Hampshire and Oregon
- Exception. Many Alaska towns charge a local sales tax
- Still applies. Nexus elsewhere still means collecting there
What do the five states actually charge?
| State | Statewide sales tax | Worth knowing |
|---|---|---|
| Alaska | None | Many local governments charge one, and remote sellers can be covered |
| Delaware | None | Businesses pay a gross receipts tax instead |
| Montana | None | Some resort areas have local taxes |
| New Hampshire | None | Meals and rooms are taxed |
| Oregon | None | Corporate Activity Tax applies to larger businesses |
So "no sales tax" doesn't mean no business tax. Our 50-state table shows the basics for every state.
Does a business based there escape sales tax?
No. If your business sits in Oregon and you sell $200,000 a year into California, you may well have economic nexus in California. You'd need to register, collect and file there, even if you've never charged a customer tax at home.
This surprises owners, because their local bookkeeping never has a sales tax line. Then their online sales grow, and it's a real exposure before anyone notices.
What if you sell into those states?
You usually don't collect anything for Delaware, Montana, New Hampshire or Oregon. Alaska is the exception. Its local jurisdictions have a shared remote seller system, and many require registration once you pass their threshold. So check before you assume.
What about use tax?
Use tax is the other half of sales tax. If you buy something without paying sales tax and use it in a state that has one, you may owe use tax directly to that state. It's most common with equipment bought from out-of-state suppliers. Businesses in no-tax states don't face this at home, but it can apply at a branch in another state.
Is moving there a tax strategy?
Not by itself. Your sales tax depends on where your customers are, not only where you are. Forming an LLC in Delaware doesn't change that. See the best state to form an LLC. If you're selling across state lines, a nexus check is the place to start.
Sources
- Federation of Tax Administrators: State tax agencies
- Alaska Remote Seller Sales Tax Commission
- Oregon Corporate Activity Tax
General information, not tax advice for your situation.
Selling in more than one state?
We check where you owe and file the returns.
See our sales tax serviceDoes Oregon have sales tax?
No statewide or local general sales tax. Oregon does have a Corporate Activity Tax for larger businesses.
Do I charge sales tax to a customer in Delaware?
Generally no, since Delaware has no sales tax, though you should keep a record of the delivery address.
Do any Alaska cities charge sales tax?
Yes. Many do, and remote sellers may need to register through the state's shared local tax system.
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