Find the 5 US States without a Sales Tax. Almost every state has a sales tax, with rates ranging from 2.9% in Colorado and as high as 7.25% in California. In addition, most local counties, cities, and municipalities have their own sales taxes that is added to the state rate. Find the US Sales Tax Rate.
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With 45 states plus the District of Columbia that have a sales tax, and 38 states where is also a local sales tax added to the state tax, there are 4 states with no state sales tax.
The States with No Sales Tax are Alaska, Delaware, Montana, New Hampshire and Oregon.
Even if Alaska doesn’t have a sales tax, there is a local tax and the average Local Sales Tax is 1.43%. In Montana some tourist destinations cities charge their own local sales taxes on most purchases.
Which means that Delaware, New Hampshire and Oregon are the only states that do not impose any sales taxes at all or allow sales taxes levied by the counties or cities.
What is a Sales Tax?
A sales tax is a tax levied on purchases of goods and services imposed by the states, counties or cities. A sales tax is levied at the point of sale, collected by the retailer, and then transferred on to the states, counties or cities.
A sales tax can be origin-based, which means that the sales tax rate are determined by the location of the seller, not by the location of the buyer or is determined by the location of the buyer when the transaction is completed, and not by the location of the seller.
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We strive to offer the most accurate tax rates available, but tax rates are subject to change, and you should also check your local government tax offices for the current city, county, and state tax rates. No warranty is made as to the accuracy of information provided.