Five States That Have No State Sales Tax

Money

There are a lot of different taxes that the average person pays in this life. Of course, there is an income tax. Even with that you typically have social security and Medicare taxes to worry about. You pay tax when you fill up your car with gas, and often there is a tax associated with any property that you own. Each year, you will pay a tax on your automobile. The list can go on and on. We have not even got to the state and local taxes yet. In fact, you will pay a state sales tax in 45 states plus the District of Columbia. This means that you will pay a certain percentage in tax for every item that you buy. Yikes, the taxes just keep going. However, there are five states where you will pay no state sales tax at all.

1. Alaska

It is true that Alaska has no state sales tax to speak of. However, the state does permit local communities to assess their own local sales tax. In some places, this jumps to as high as 7.5 percent. The average statewide is a much lower 1.43 percent. This can get quite confusing for people who travel from one part of the state to another, as you might never know how much you are going to pay in tax. Also, while there is not a state sales tax in Alaska, the property tax can be quite high. The average tax for a $250,000 home is about $2,950 per year.

2. Delaware

Delaware is the second state on our list that does not charge a sales tax. Contrary to Alaska, they do not allow local communities to charge a sales tax either. This means that you can enjoy shopping statewide without ever having to worry about paying a sales tax. An interesting part of this story is that Salem County, New Jersey has recently cut its sales tax in half. This is because it borders Delaware and residents were just driving across the border to buy many goods. Delaware does have a state income tax and property tax.

3. Montana

There is no sales tax statewide in Montana. However, some resort areas have passed an ordinance to be able to charge a local sales tax. At the current time, these include the Big Sky, Red Lodge, and West Yellowstone areas of Montana. There is an income tax in Montana charged at between 1 percent on the low end 6.9 percent of taxable income on this high end. The property tax in Montana is also quite high. On a $200,000 property, you can expect to pay in the neighborhood of $1,700 in annual taxes.

4. New Hampshire

New Hampshire is a state that on the surface seems to charge very little in the way of taxes. They have no sales tax, and no local sales tax either. You can shop as much as you want and not have to worry about any sales tax. In fact, there is no income tax in the state either, although there is a tax on dividends and interest that exceed a certain dollar amount. Expect to pay more than your share of taxes on any property that you own. The annual tax on a $240,000 home is currently about $5,250.

5. Oregon

Oregon is the final state on our list that does not charge a sales tax anywhere in the state. No local sales tax is charged either. However, keep in mind that there is an income tax rate that ranges between 5 percent on the low end and 9.9 percent on this high end. Property taxes are higher than average, with an annual assessment of over $2,625 being charged on a home valued at $247,000.

So, are you ready to move to one of these five states so that you can avoid paying sales tax on the items that you buy every day? Well, don’t schedule the moving truck just yet. Remember that money for infrastructure must come from somewhere. If a state does not have a sales tax to collect revenue, you can bet that they make up for it somewhere else. In New Hampshire, for example, you will pay the highest tax rate in the country on any property that you own. Do yourself a favor and pick your living environment based on what you enjoy and no how much sales tax you will pay.

Add Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Careers CEOs Companies Education Entertainment Legal Politics Science Sports Technology
Cabo Wabo Tequila
10 Things You Didn’t Know about Cabo Wabo Tequila
Burlington
Does Burlington Coat Factory Drug Test Its Employees?
Jeff Bezos
The 10 Most Expensive Divorces in History
Collectibles Credit Cards Investing Real Estate Stocks
Stock
Is Lucid Stock a Solid Long Term Investment?
Atlanta Braves
The 10 Most Expensive Atlanta Braves Baseball Cards Ever
Docusign
Is Docusign Stock a Solid Long Term Investment?
Aviation Boats Food & Drink Hotels Restaurants Yachts
Westin Anaheim
10 Reasons to Stay at the Westin Anaheim
Fairhope's Municipal Pier
The 20 Best Things to Do in Fairhope, Alabama
Aperol Spritz
The 10 Best Proseccos To Use for an Aperol Spritz
BMW Bugatti Cadillac Ferrari Lamborghini Mercedes Porsche Rolls Royce
2022 Volkswagen Arteon
A Closer Look at the 2022 Volkswagen Arteon
2021 Subaru Outback Premium
The 10 Best Subaru Outback Models of All-Time
2020 GMC Yukon Denali
The 10 Best GMC Yukon Models of All-Time
BMW Motorcycles Buell Ducati Harley Davidson Honda Motorcycles Husqvarna Kawasaki KTM Triumph Motorcycles Yamaha
2022 Honda ADV350
A Closer Look at The 2022 Honda ADV350
2022 Yamaha YZ125
A Closer Look at The 2022 Yamaha YZ125
2024 KTM RC990 Sportbike
A Closer Look at The 2024 KTM RC990 Sportbike
Electronics Fashion Health Home Jewelry Pens Sneakers Watches
The North Face
Why are North Face Puffers So Popular?
Parmigiani Tonda PF Micro-Rotor Watch
A Closer Look at The Parmigiani Tonda PF Micro-Rotor Watch
Beard Trimmer
The 10 Best Beard Trimmers Money Can Buy
Julie Bowen
How Julie Bowen Achieved a Net Worth of $18 Million
Jennifer Coolidge
How Jennifer Coolidge Achieved a Net Worth of $6 Million
Mannie Fresh
How Mannie Fresh Achieved a Net Worth of $15 Million
Charli D'Amelio and Dixie D'Amelio
The 10 Richest TikTokers in 2021