Which States Don't Charge Sales Tax?


Quick Answer

The five states in the United States that do not have a state-level sales tax as of 2014 are Alaska, Delaware, Montana, New Hampshire and Oregon. However, Alaska does have local-level sales tax in some cities, and Delaware does apply a tax on business purchases.

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Full Answer

Some states also choose not to impose an individual income tax rate. Those states include Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. These states make up their tax revenue in various other areas of the tax code, including interest from investments, dividend payments and property taxes.

As of 2014, the overall tax burden is lowest in Alaska, which draws an average of 6.4% of its residents' income, according to About.com. These taxes come in the form of local sales tax, property tax, fuel tax and other local-level taxes. The states with the highest total tax rate tend to also have high income tax, sales tax and property taxes, such as New York, which consistently carries some of the highest sales tax and property tax rates in the nation. As of 2014, the states with the lowest tax burdens have also some of the fastest growing economies, such as Wyoming, which grew its GDP by 7.6% in 2013, the second largest improvement in the United States, according to 24/7 Wall St.

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