Which U.S. States Have No Sales Tax? Money-Saving Guide Here!

Which U.S. States Don’t Charge Sales Tax? Discover Your Smart Saving Options!

When shopping in the United States, aside from the price of the item itself, one of the biggest concerns for consumers is often the sales tax. While it may seem small, this additional fee can significantly impact total spending-especially on big-ticket purchases. For savvy shoppers, knowing which states do not impose a sales tax can help reduce expenses and even influence decisions regarding travel, online shopping, or relocation.

As of now, five out of the 50 U.S. states do not collect statewide sales tax New Hampshire, Oregon, Montana, Alaska, and Delaware. These states have become popular shopping destinations, especially during holidays or major sale periods, thanks to this tax-free advantage.

Why No Sales Tax?

Each state has its own fiscal structure and policy goals, but generally, these states compensate for the lack of sales tax through alternative revenue sources

Delaware relies heavily on corporate registration fees and property taxes.

Alaska benefits from substantial income generated by its rich oil resources.

Oregon primarily depends on personal income taxes and property taxes.

New Hampshire does not levy a state-level personal income tax but taxes interest and dividends, while also maintaining relatively high property taxes.

Montana similarly depends on property taxes and resource-related revenues.

This diversified financial strategy allows these states to maintain public services without imposing an additional burden on consumers.

Shopping Paradise The Benefits of Tax-Free Shopping

Because of their no-sales-tax policy, these states are often referred to as shopping paradises. Take Delaware, for example-cities like Wilmington and Dover are home to numerous large shopping centers and outlet malls, drawing residents from neighboring states such as Pennsylvania and New Jersey. When purchasing high-value items like electronics, furniture, or clothing, shoppers can save hundreds or even thousands of dollars in taxes.

According to a 2025 survey, a typical family shopping in Delaware could save between 8% to 10% compared to shopping in states like New York or California. This has prompted many consumers to cross state lines for bulk purchases.

With the rise of e-commerce, more people are asking whether they can benefit from tax-free policies online. While most states require online retailers to collect sales tax, in these five states, you can legally avoid paying sales tax if the product ships directly from the state or if you pick it up in person. As a result, some retailers have chosen to open warehouses in these states to reduce customer tax burdens and boost competitiveness.

Recent Trends and Developments

While these five states still maintain their no-sales-tax status, there have been recent discussions that merit attention.

In Alaska, certain localities have considered implementing local sales taxes to address budget shortfalls. However, as of early 2025, no concrete policy changes have taken place.

Oregon has faced increasing fiscal pressure due to rising unemployment and economic slowdowns during the pandemic. Though there have been ongoing debates in the state legislature about introducing a sales tax, most residents remain strongly opposed to any form of consumption tax.

Additionally, with the growth of remote work and digital nomadism, more people are considering relocating to areas with lower living costs and lighter tax burdens. This has made these five tax-free states increasingly attractive real estate markets. For instance, according to the latest data from Zillow, home prices in Montana and Idaho-though not entirely tax-free-have risen by over 10% in the past year due to growing migration trends.

How to Maximize Your Savings

If you're looking to take full advantage of the tax-free benefits offered by these states, here are some practical suggestions

1. Plan Cross-State Shopping Trips Before major holidays or sales events, consider taking a short trip to a tax-free state. It’s a great way to combine shopping with travel while keeping your budget in check.

2. Look for E-commerce Deals Some online retailers offer shipping options from tax-free states, helping you avoid extra charges when buying expensive items.

3. Time Major Purchases Strategically If you're planning to buy appliances, electronics, or furniture, consider making the purchase in a tax-free state. The savings can be equivalent to a significant discount.

4. Consider Relocation or Remote Work Options If your job allows for remote work, think about relocating to one of these five states. Over time, the tax savings can add up to a meaningful amount.

In conclusion, understanding and utilizing differences in U.S. state tax policies is a key part of smart financial management. Especially in today's inflationary environment, every dollar saved counts. The five sales-tax-free states provide valuable opportunities for budget-conscious consumers to stretch their dollars further.