Five States That Have No State Sales Tax

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.

Dan Snyder
How Dan Snyder Achieved a Net Worth of $2.3 Billion
Wilbur Ross
20 Things You Didn’t Know about Wilbur Ross
5 KPIs Every Small Business Owner Should Grasp To Succeed
Andre 3000
How André 3000 Achieved a Net Worth of $45 Million
AT&T Building
Why AT&T is an Excellent Dividend Stock for Retirees
Why Apple is a Solid Dividend Stock for the Next 50 Years
chase sapphire reserve card
What Does the Chase Sapphire Reserve Annual Fee Cover?
Travel for Free This Summer With These 7 Credit Card Rewards
Biosphere 2
Closed Ecological Systems: Can They Save the Future?
brain computer interface
How Close is Brain-Computer Interface To Being a Reality?
agricultural robots
What Are Agricultural Robots and How Will They Change the Future?
New Orleans Arcology
What is an Arcology and How Close are We To Having One?
Green-Wood Cemetery
10 Reasons You Should Visit Green-Wood Cemetery
Ben and Jacks
Why Ben & Jack’s is One of NYC’s Finest Steakhouses
Federal Reserve Bank of New York
10 Things to do at the Federal Reserve Bank of New York
Ritz Carlton Grand Cayman
10 Reasons You Should Stay at The Ritz Carlton Grand Cayman
1956 Cadillac Series 62 Eldorado Seville Coupe
The 20 Best Cadillac Eldorado Models of All Time
Veneno Showroom
The Lamborghini Veneno Roadster: A Rare and Limited Edition
1961 ferrari 250 gt swb california spider
A Closer Look at the 1961 Ferrari 250 GT California SWB Spider
2019 Jeep Grand Cherokee Summit 4 X 4 Review
Patek Philippe Pink Gold Pocket Watch 1894
A Closer Look at the $2.29 Million Patek Philippe Pink Gold Pocket Watch 1894
Patek Philippe Perpetual Calendar Chronograph Wristwatch in Pink Gold
A Closer Look at the $2.28 Million Patek Philippe Perpetual Calendar Chronograph Wristwatch in Pink Gold
20 Things That You Didn’t Know About Breitling Watches
2019 Breitling
The 10 Best Breitling Watches of 2019