State taxes
States with no sales tax in 2026, and whether any state has no property tax
Five states have no statewide general sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. Only Delaware, New Hampshire and Oregon have no local sales tax either; in Alaska many cities and boroughs add their own, and in Montana some resort towns do. No state is free of property tax, though Alaska comes closest: only 24 of its local governments levy one, so much of the state has none.
The five states with no sales tax
Each of these states says so on its own revenue department’s site. "No sales tax" means no general tax added at the register on ordinary purchases; most of them tax some specific things instead.
| State | Statewide sales tax | Local sales tax | What it taxes instead |
|---|---|---|---|
| Alaska | None | Yes, in 107 cities and boroughs: 1% to 7% | No individual income tax either; property tax only where 24 local governments levy it |
| Delaware | None | None | A gross receipts tax paid by sellers on their revenue, plus income tax |
| Montana | None | Only in some resort areas | Income tax and property tax; lodging and rental-car taxes for visitors |
| New Hampshire | None on goods | None | 8.5% Meals and Rooms tax on restaurant meals, hotel rooms and car rentals; no tax on wages |
| Oregon | None | None | Income tax, and a vehicle use tax on new vehicles |
States with no income tax and no sales tax
Two states have neither: Alaska, which has no individual income tax and no statewide sales tax, and New Hampshire, which does not tax wages and has no general sales tax. Both make up for it largely with property tax, and Alaska’s towns often with local sales tax. The other states without an income tax, such as Texas, Florida and Tennessee, rely heavily on sales tax instead.
Are there states with no property tax?
Not entirely. Property tax is mostly a local tax in the United States, levied by counties, cities, school districts and other local bodies, so a state that collects no property tax of its own still has it on the homeowner’s bill. Texas is the usual example: the state collects none, while local governments and school districts do.
Alaska is the exception that comes closest. Its State Assessor says only a small portion of the state’s land is subject to property tax: 15 of its 19 boroughs and 9 cities outside boroughs levy one, 24 local governments in all. Live outside them and you pay no property tax, though you will also find few local services.
Everywhere else, what varies is the rate, how homes are assessed and the exemptions on offer, such as homestead and senior exemptions, which each state and county sets.
What no sales tax means if you live or shop there
A few practical points:
- Buying in a no-sales-tax state as a visitor: you generally pay no sales tax at the register on ordinary goods, though meals, lodging and car rentals can still be taxed, as in New Hampshire.
- Living in a no-sales-tax state and shopping elsewhere: buy in a state with a sales tax and you pay that state’s tax at the register.
- Running a business there: Delaware taxes the seller’s gross receipts instead, so the cost is built into prices rather than shown on the receipt.
- On your federal return: if you itemize, you can deduct state and local income taxes or general sales taxes, not both, within the SALT cap.
Moving to a no-tax state, or working across state lines?
We prepare federal and state returns in all 50 states, including part-year resident returns for the year you move. In person in Naperville, IL, by phone or by Zoom.
Questions people ask
What states have no sales tax?
Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide general sales tax. Alaska towns and some Montana resort areas add a local one.
Does Oregon have sales tax?
No. The Oregon Department of Revenue says Oregon does not have a general sales or use tax. It does have a vehicle use tax on new vehicles.
Does Delaware have sales tax?
No. Delaware has no sales tax. Businesses pay a gross receipts tax on their revenue instead, which is not added at the register.
Does Montana have sales tax?
Montana has no general sales tax, according to its Department of Revenue. Some resort communities levy a local resort tax.
Does New Hampshire have sales tax?
No general sales tax on goods. Restaurant meals, hotel rooms and car rentals carry an 8.5% Meals and Rooms tax.
Does Alaska have sales tax?
There is no statewide sales tax, but many Alaska cities and boroughs charge their own, from 1% to 7%.
What state has no property tax?
No state is completely free of it. Property tax is levied locally, even in states such as Texas where the state collects none. Alaska comes closest: only 24 local governments levy it, so much of the state has no property tax.
Where these rules come from
- Oregon Department of Revenue: Sales tax in Oregon
- Montana Department of Revenue: Sales tax guidance
- New Hampshire DRA: Does New Hampshire have a sales tax?
- New Hampshire DRA: Meals and Rooms (Rentals) Tax
- Delaware Division of Revenue: Gross receipts taxes
- Alaska DCRA: Sales tax
- Alaska DCRA: Alaska tax facts
General information, current when written, not advice about your situation. Fees and forms change; the official pages above are the authority.
