Five states have no statewide sales tax: New Hampshire, Oregon, Montana, Alaska, and Delaware, often remembered as the "NOMAD" states. Of the five, only Alaska lets local governments levy a general sales tax, so Delaware, New Hampshire, and Oregon are the only states where ordinary retail purchases are free of general sales tax everywhere. Montana has no statewide sales tax, but designated resort communities can charge a local resort tax.
"No sales tax" is not the same as "no tax." Each of these states raises revenue in other ways, and some of those taxes land on sellers rather than shoppers. The table below shows what actually applies in each state.
The 5 states with no sales tax at a glance
| State | Statewide sales tax | Local sales taxes allowed? | What still applies |
|---|---|---|---|
| Alaska | None | Yes. Boroughs and cities set their own rates. | Local sales taxes, with combined borough and city rates as high as 9.5% on the Alaska Remote Seller Sales Tax Commission (ARSSTC) 1 September 2026 rate sheet. Remote sellers register with the ARSSTC once statewide gross sales reach $100,000. |
| Delaware | None | No | A gross receipts tax on sellers, not buyers, at rates from 0.0945% to 1.9914% depending on business activity, after a monthly or quarterly exclusion. |
| Montana | None | Only in designated resort communities | Local resort taxes of up to 3%, plus up to 1% more for infrastructure where voters approve it. A statewide 4% sales tax and 4% use tax apply to lodging, and a 4% tax applies to short-term vehicle rentals. |
| New Hampshire | None | No | An 8.5% Meals and Rooms (Rentals) Tax on restaurant meals, hotel stays, and motor vehicle rentals, plus business taxes on profits and enterprise value. |
| Oregon | None | No general sales taxes | A Corporate Activity Tax on businesses with more than $1 million of Oregon commercial activity, and a 0.5% vehicle privilege or use tax on new vehicles. |
Alaska
Alaska has no state sales tax, but it is the one NOMAD state where local sales tax is common. Boroughs and cities set their own rates, and a borough rate can stack on top of a city rate. On the ARSSTC's 1 September 2026 rate sheet, member rates run from 2% up to a combined 9.5%, and some communities use seasonal rates or cap the tax on a single sale. Anchorage, the largest city, does not levy a general sales tax.
For online and other remote sellers, the ARSSTC runs a single registration and filing system for member communities that have adopted its Remote Seller Sales Tax Code. A remote seller or marketplace facilitator must register once its gross sales into Alaska reach $100,000 in the current or previous calendar year. The former 200-transaction test was removed effective 1 January 2025. All sales delivered into Alaska count toward the threshold, including sales into communities with no tax. Marketplace facilitators collect for all of their marketplace sellers' sales into member communities.
Delaware
Delaware has no state or local sales tax, so shoppers pay no sales tax at the register. Instead, Delaware charges businesses a gross receipts tax on the total they take in from goods and services sold in the state. It is a tax on the seller, not a tax added to the customer's bill. Rates run from 0.0945% to 1.9914% depending on business activity (and up to 2.4218% for some petroleum products). Most businesses get a monthly or quarterly exclusion before the tax applies, and there are no deductions for cost of goods, labour, or other expenses.
Montana
Montana does not have a general sales tax. State law lets voters in designated resort communities, such as Big Sky, West Yellowstone, Whitefish, and Red Lodge, approve a local resort tax of up to 3% on lodging, restaurant meals, alcohol served on premises, recreational facilities, and luxury goods, with up to 1% more allowed for infrastructure projects. Montana also charges a statewide 4% lodging facility sales tax plus a 4% lodging facility use tax (8% combined) on accommodations, and a 4% sales and use tax on vehicles rented for 30 days or less.
New Hampshire
New Hampshire has no general sales tax, and its towns and cities do not levy one either. The state's main consumption tax is the Meals and Rooms (Rentals) Tax, charged at 8.5% on restaurant meals, hotel and other room rentals, and motor vehicle rentals. Operators collect it from customers and remit it monthly. Businesses also pay the Business Profits Tax and the Business Enterprise Tax. New Hampshire repealed its Interest and Dividends Tax for tax periods beginning on or after 1 January 2025.
Oregon
Oregon does not have a general state or local sales or use tax, so retail purchases are free of sales tax statewide (a few cities, such as Ashland, tax prepared food and meals). Businesses with more than $1 million in taxable Oregon commercial activity pay the Corporate Activity Tax (CAT): $250 plus 0.57% of taxable commercial activity above $1 million. The CAT is a tax on the business, not a transaction tax collected from customers. Vehicle dealers pay a 0.5% vehicle privilege tax on new vehicle sales, and Oregon residents who buy a new vehicle from an out-of-state dealer pay a matching 0.5% vehicle use tax. Travellers can still see state or local taxes on hotel and rental car bills.
What no sales tax means for buyers and sellers
For shoppers, the benefit is simple: most purchases made in Delaware, New Hampshire, and Oregon carry no sales tax, and most purchases in Montana outside resort communities carry none either.
For businesses, being based in a NOMAD state does not remove sales tax obligations elsewhere. Sales tax follows the customer's location, so a Montana or Oregon company selling into other states may have to register, collect, and file there:
- Economic nexus. Every state with a sales tax sets a sales threshold for remote sellers. A company based in Oregon that sells more than $500,000 a year into California, for example, must collect California sales tax. See how economic nexus works and how to determine nexus in every state.
- Physical presence. Employees, offices, or inventory in another state, including inventory stored in third-party fulfilment centres, create nexus there.
- Marketplace sales. Marketplace facilitators such as Amazon collect and remit sales tax on sales made through their platforms in most states, but your direct sales still count toward your own obligations in many of them.
- Alaska's local taxes. Selling into Alaska can require ARSSTC registration once statewide sales reach $100,000, even though the state itself has no sales tax.
Kintsugi's exposure monitoring tracks your sales against each state's threshold and alerts you before you cross one. To check what a sale into a specific address would cost, try the free US sales tax calculator.
If you are comparing states that do charge sales tax, see the states with the lowest sales tax rates.
Frequently asked questions
What states have no sales tax?
Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. They are often called the NOMAD states, from New Hampshire, Oregon, Montana, Alaska, and Delaware.
Which states have no sales tax at all, including local taxes?
Delaware, New Hampshire, and Oregon have no state or local general sales tax. Alaska allows local sales taxes, and Montana allows local resort taxes in designated resort communities.
What state has no sales tax and no income tax?
Alaska and New Hampshire. New Hampshire repealed its Interest and Dividends Tax for tax periods beginning on or after 1 January 2025. Many Alaska communities still charge local sales tax.
Do businesses in no-sales-tax states have to collect sales tax?
Yes, when they have nexus in other states. A business based in a NOMAD state still has to collect sales tax in any state where it meets that state's economic nexus threshold or has a physical presence. Alaska sellers may also need to collect local sales tax.
Does Alaska charge sales tax on online orders?
Often, yes. Alaska has no state sales tax, but member communities of the ARSSTC require remote sellers and marketplace facilitators with $100,000 or more in statewide annual gross sales into Alaska to collect local sales tax on deliveries into those communities.
Is Delaware tax-free for businesses?
No. Delaware has no sales tax for shoppers, but businesses pay a gross receipts tax on their Delaware sales, along with corporate income tax and other business taxes.
Sources
- Alaska Remote Seller Sales Tax Commission: Business/Sellers, Tax Rates (rate sheet as of 1 September 2026), FAQ
- Delaware Division of Revenue: Gross Receipts Tax
- Montana Department of Revenue: General Sales Tax, Local Resort Tax, Lodging Facility Sales and Use Tax; MCA 7-6-1503
- New Hampshire Department of Revenue Administration: Meals and Rooms (Rentals) Tax, Repeal of the Interest and Dividends Tax
- Oregon Department of Revenue: Sales Tax in Oregon, Corporate Activity Tax, Vehicle Privilege and Use Taxes
