Which states have no sales tax in 2026?

Five states have no statewide sales tax in 2026: Alaska, Delaware, Montana, New Hampshire, and Oregon. However, Alaska allows local jurisdictions to levy sales tax up to 7.5%, and some Montana resort towns have a local resort tax.

How much can I save with no sales tax?

A family spending $30,000 per year on taxable goods would save $2,400-$2,900 annually compared to high-sales-tax states like Tennessee (9.55%) or California (7.25-10.25%). Over 20 years, that's $50,000-$58,000 in savings.

Which no-sales-tax state is best overall?

New Hampshire is the best overall for tax savings because it has no sales tax AND no income tax (as of 2025). For homeowners, Delaware is excellent with no sales tax plus very low property taxes (0.59%). Oregon is great for lifestyle but has high income tax (9.9%).

Do I still pay sales tax on online purchases in no-sales-tax states?

If you live in a no-sales-tax state, you don't pay sales tax on most online purchases - the tax is based on the buyer's location. However, you may owe use tax on certain out-of-state purchases. Major retailers collect tax based on where items are shipped.

Should I move to a no-sales-tax state just for the savings?

Moving solely for sales tax savings of $1,000-$3,000/year is usually not worth it. However, it's a nice bonus if you're already considering states like New Hampshire or Delaware for other reasons, or if you make large purchases regularly (cars, furniture, electronics).

The 5 States with No Sales Tax in 2026

Quick Summary

Only 5 states have NO sales tax: Alaska, Delaware, Montana, New Hampshire, Oregon

How much you save: $1,000-$3,000/year depending on spending

The catch: Most have income tax or high property taxes instead

Best overall: New Hampshire (no sales tax + no income tax)

Why Only 5 States?

Sales tax is a massive revenue source for most states. The average American pays $1,200-$2,500/year in sales taxes. States give this up only when they have other strong revenue sources (income tax, property tax, natural resources, etc.).

The 5 no-sales-tax states:

Alaska
Delaware
Montana
New Hampshire
Oregon

1. New Hampshire - The Golden State

Best Overall: No Sales Tax + No Income Tax

Sales Tax: 0%

Income Tax: 0% (phased out completely in 2025)

Property Tax: 2.05% (high)

What you save:

$25,000 spending = save $2,000/year vs 8% sales tax state
$75,000 income = save $4,000-$6,000/year vs high-tax states

The trade-off:

High property taxes (2.05% average)
On a $400k home: $8,200/year property tax
Still a win for high earners who rent

Best for:

High-income professionals (save on income tax)
People who rent (avoid property tax hit)
Those who want "Live Free or Die" lifestyle
Anyone tired of Massachusetts taxes next door

NH Tax Calculator

2. Delaware - The Shopping State

Low Property Tax + No Sales Tax

Sales Tax: 0%

Income Tax: 2.2%-6.6% (progressive)

Property Tax: 0.59% (very low!)

What you save:

$20,000 spending = save $1,600/year vs 8% state
On $400k home: Only $2,360/year property tax

Why it's popular:

Tax-free shopping destination: People from PA, NJ, MD drive to DE to shop
Low property taxes: Among the lowest in America
No sales tax on big purchases: Cars, furniture, electronics all tax-free
Beach access: Rehoboth Beach popular with DC/Philly/NY crowd

Best for:

Retirees on fixed income
People who make large purchases (cars, furniture)
Those wanting beach lifestyle near major cities

DE Tax Calculator

3. Oregon - Progressive Paradise

No Sales Tax, But High Income Tax

Sales Tax: 0%

Income Tax: 4.75%-9.9% (progressive)

Property Tax: 0.90% (reasonable)

What you save:

$30,000 spending = save $2,400/year vs WA's 10% sales tax

The trade-off:

High income tax: 9.9% top rate kicks in at $125k
Making $150k = pay $12,500 income tax
Not a low-tax state overall

Best for:

Lower-income individuals (under $50k)
People who value OR lifestyle (nature, Portland, coast)
Those who don't mind income tax

OR Tax Calculator

4. Montana - Big Sky Savings

No Sales Tax in Most of State

Sales Tax: 0% (but some resort towns levy local "resort tax")

Income Tax: 4.7%-5.9% (progressive)

Property Tax: 0.74% (low)

What you save:

$25,000 spending = save $2,000/year

The catch:

Resort towns (Big Sky, Whitefish) levy local taxes
Very rural = limited job opportunities
Harsh winters

Best for:

Outdoor enthusiasts
Remote workers who value nature
Retirees seeking low cost of living

MT Tax Calculator

5. Alaska - Natural Resource Funded

No State Sales Tax (But Local Taxes Exist)

State Sales Tax: 0%

Local Sales Tax: Up to 7.5% in some cities

Income Tax: 0%

Property Tax: 1.04% (varies widely)

What you save:

Depends on city - Anchorage has 0%, Juneau has 5%

Why no state sales tax?

Oil revenue funds the state
Alaska Permanent Fund pays residents ~$1,000-$2,000/year dividend

The reality:

High cost of living (everything shipped in)
Harsh climate
Limited job opportunities outside Anchorage
Isolated from rest of US

Best for:

Adventurous types
Oil/gas workers
People who love wilderness

AK Tax Calculator

How Much Do You Actually Save?

Real Savings Examples

Family spending $30,000/year on taxable goods:

State Type	Sales Tax Rate	Annual Sales Tax	Savings (vs no tax)
No-Sales-Tax States	0%	$0	---
California	7.25-10.25%	$2,475	-$2,475
Tennessee	9.55%	$2,865	-$2,865
Texas	8.20%	$2,460	-$2,460

Over 20 years: Save $49,000-$57,000 in sales taxes!

The Verdict: Which No-Sales-Tax State is Best?

For overall tax savings: New Hampshire wins (no income tax + no sales tax)

For homeowners: Delaware wins (no sales tax + very low property tax)

For lifestyle: Oregon if you love nature and don't mind income tax

For adventure: Alaska or Montana if you're okay with remote living

The 5 States with No Sales Tax in 2026

Quick Summary

Why Only 5 States?

1. New Hampshire - The Golden State

Best Overall: No Sales Tax + No Income Tax

2. Delaware - The Shopping State

Low Property Tax + No Sales Tax

3. Oregon - Progressive Paradise

No Sales Tax, But High Income Tax

4. Montana - Big Sky Savings

No Sales Tax in Most of State

5. Alaska - Natural Resource Funded

No State Sales Tax (But Local Taxes Exist)

How Much Do You Actually Save?

Real Savings Examples

Family spending $30,000/year on taxable goods:

The Verdict: Which No-Sales-Tax State is Best?

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