Five states in the United States have no state-level sales tax. These states are:
- Alaska: Alaska has no state-level sales tax, but local jurisdictions are allowed to impose their own sales taxes. The average combined state and local sales tax rate in Alaska is 1.76%.
- Delaware: Delaware has no state-level sales tax and no local sales taxes. The state funds itself through other taxes and fees, such as the gross receipts tax on businesses.
- Montana: Montana has no state-level sales tax, but local jurisdictions are allowed to impose their own sales taxes. The average combined state and local sales tax rate in Montana is 0%.
- New Hampshire: New Hampshire has no state-level sales tax, but it does impose a 9% tax on hotel rooms and a 10% tax on restaurant meals and prepared foods.
- Oregon: Oregon has no state-level sales tax, but it does have a statewide transient lodging tax of 1% and a restaurant tax of 1% in addition to local sales taxes that may be imposed.
It is important to note that even though these states do not have state-level sales taxes, they may still have other taxes and fees that apply to goods and services. Additionally, some of these states may have local sales taxes imposed by cities, counties, or other jurisdictions.