As of 2014, there are four U.S. states that do not impose a sales tax on consumers: Delaware, Montana, New Hampshire and Oregon. While Alaska does not impose a state sales tax, city governments do have the right to impose some sales tax there, meaning the average Alaskan retail shopper pays about 1.69 percent in sales tax.
While sales tax generates income and allows state governments to function, it has been criticized for placing a financial burden on the lowest income earners by making retail products more expensive. It's also important to remember that zero state sales tax does not necessarily translate to a low overall tax burden for state residents. Oregon residents, for example, tend to pay high income tax rates.