Which States and ZIP Codes Have No Sales Tax?
Meta description: Find out which states have no general sales tax, why ZIP codes alone cannot guarantee a tax-free purchase, and how local taxes affect the final price.
Five U.S. states do not impose a general statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. But “no sales tax” does not always mean a purchase is tax-free. Some communities in Alaska levy local sales taxes, and special taxes can apply to particular goods or services in several of these states. ZIP codes are useful for locating an address, but they do not reliably identify whether a specific sale is taxable or what rate applies.
States With No General Statewide Sales Tax
The five states below do not collect a broad, statewide tax on retail sales like the sales taxes imposed in most states. Their rules differ, so shoppers should check local requirements and the type of purchase rather than relying on a state’s name alone.
| State | General statewide sales tax | Important qualification |
|---|---|---|
| Alaska | None | Some local governments impose sales taxes. |
| Delaware | None | Businesses may pay gross receipts tax; it is not a general consumer sales tax. |
| Montana | None | Some resort communities impose local resort taxes on qualifying purchases. |
| New Hampshire | None | Meals, rooms, and certain other activities are subject to separate taxes. |
| Oregon | None | Other taxes and fees may apply, including taxes on specific products or services. |
“No general sales tax” is the key distinction. It does not mean that a state has no taxes, that every item is exempt from every charge, or that a shopper can determine tax treatment from a ZIP code. State and local rules, product categories, and the details of a transaction all matter.
Alaska: No State Tax, but Local Sales Taxes May Apply
Alaska has no statewide sales tax, but local governments can impose their own sales taxes. The Alaska Department of Commerce, Community, and Economic Development maintains information about local tax jurisdictions. Rates and rules can vary by community, and a city or borough may tax some sales while another does not.
As a result, an Alaska address is not automatically sales-tax-free. A purchase delivered to a location in a community with a local sales tax may be subject to that tax. Some local governments also set different rules for in-person transactions, remote sales, or particular types of goods. The applicable ordinance and the seller’s tax-collection obligations determine the outcome.
Alaska ZIP codes are especially poor substitutes for checking local tax boundaries. A ZIP code is a mail-delivery area, not a tax jurisdiction. One ZIP code can cover multiple communities or extend across local boundaries, while a community’s tax boundary may not match the ZIP code outline. For a reliable answer, check the delivery address against the relevant local government’s current tax guidance.
Delaware: No Retail Sales Tax
Delaware does not impose a general sales tax on retail purchases. Shoppers generally will not see a state or local retail sales tax added at checkout for an ordinary purchase in the state. This is why Delaware is often associated with tax-free shopping.
However, Delaware does tax business activity through a gross receipts tax. The tax is generally imposed on a business’s gross receipts and is not the same as a retail sales tax charged directly to a customer. A business may account for its tax costs in its prices, but that does not make the charge a consumer sales tax.
Other taxes can still apply in Delaware, including taxes on particular services or transactions. Buyers should also distinguish a purchase made in Delaware from an online order shipped elsewhere. The destination state’s rules may require the seller to collect sales tax on a delivered order, even if the seller or customer is connected with Delaware.
Montana: No General Sales Tax, With Resort-Tax Exceptions
Montana has no general statewide sales tax. Regular retail purchases are not subject to a broad state sales tax, but some resort communities are authorized to impose resort taxes on qualifying sales of goods and services. These taxes are limited by state law and local rules; they are not a general sales tax that applies uniformly throughout Montana.
The local tax can affect purchases in designated resort areas, so the result may depend on the specific location and the type of transaction. Someone shopping or staying in a resort community should check the local government’s information or ask the merchant which taxes apply.
Montana ZIP codes do not identify resort-tax boundaries with enough precision to establish tax liability. A ZIP code may cover a broader area than the resort-tax district, and postal boundaries are not designed to represent tax zones. Checking the street address and local ordinance is more dependable than searching for a “no-tax ZIP code.”
New Hampshire: No General Sales Tax, but Specific Taxes Apply
New Hampshire does not have a general sales tax on retail purchases. The state does, however, levy taxes on certain activities, including meals and rooms. Those charges can appear on restaurant, lodging, or rental bills even though ordinary retail goods are not subject to a broad sales tax.
New Hampshire also applies taxes to certain other categories, and tax treatment can change depending on what is sold and how a transaction is structured. A hotel bill, for example, should not be treated as equivalent to a purchase of clothing or a household item. The New Hampshire Department of Revenue Administration publishes current information about state taxes and tax rates.
There are no ZIP codes that make all purchases tax-free by themselves. A New Hampshire ZIP code can help identify a delivery destination, but it cannot determine whether a particular service or product falls under a separate tax. Buyers should review the itemized bill and consult state guidance when the distinction matters.
Oregon: No General Sales Tax
Oregon does not impose a general sales tax on retail purchases. In most ordinary transactions, a shopper will not pay a state or local sales tax at checkout. This applies across Oregon rather than only to selected ZIP codes.
That does not mean Oregon has no taxes or fees. The state taxes particular products and activities, and other charges may apply to specific transactions. Oregon also has business taxes that are not general retail sales taxes. For example, the Corporate Activity Tax applies to certain businesses based on commercial activity and is not a standard sales tax added to a customer’s receipt.
As elsewhere, an Oregon ZIP code does not determine the tax treatment of every purchase. A sale shipped to a customer in another state may be subject to that state’s sales-tax rules if the seller has an obligation to collect. The location of the buyer, seller, delivery, and transaction can all matter.
Are There ZIP Codes With No Sales Tax?
There is no reliable national list of ZIP codes that guarantees a purchase will have no sales tax. ZIP codes are created for mail routing by the U.S. Postal Service; they are not legal tax boundaries. Local tax districts, state borders, and ZIP-code areas do not always line up.
Within a state that charges sales tax, local jurisdictions may add county, city, or special-district taxes. A ZIP code can cross one or more of these boundaries. Conversely, addresses with different ZIP codes may fall within the same tax jurisdiction. A ZIP-code lookup can provide a useful estimate, but it may not establish the exact rate or legal taxability of an item.
Even in the five states without general statewide sales taxes, local rules or product-specific taxes can matter. Alaska has local sales taxes, and Montana has resort taxes in qualifying communities. The other three states also impose certain taxes that are distinct from a general retail sales tax. Therefore, “no sales tax ZIP codes” is an imprecise search phrase rather than a dependable tax category.
Why an Online Order May Still Be Taxed
A state’s lack of a sales tax does not automatically make every online transaction tax-free. If an order is shipped to a state that imposes sales tax, the destination state’s rules may require the seller to collect tax. The U.S. Supreme Court’s 2018 decision in South Dakota v. Wayfair, Inc. allowed states to require certain remote sellers to collect sales tax even without a physical presence in the state.
States commonly use economic-nexus rules based on a seller’s sales or transaction activity, although thresholds and requirements differ. Marketplace facilitators may also be required to collect and remit tax on behalf of sellers under state law. As a result, a shopper’s tax at checkout depends on the delivery destination, the product, the seller’s obligations, and applicable exemptions—not simply the seller’s home state.
When a seller does not collect a tax that the buyer legally owes, a state may require the buyer to report use tax. Use tax generally applies to taxable purchases made without the required sales tax being collected. Rules, reporting methods, and exemptions vary by state, so consumers can consult their state revenue department for specific instructions.
How to Check Whether a Purchase Is Tax-Free
- Confirm the delivery or purchase address. Use the full street address, not just the ZIP code, because local tax boundaries may differ from postal boundaries.
- Identify the type of purchase. A state without a general sales tax may still tax meals, lodging, resort purchases, or particular products and services.
- Check the local jurisdiction. In Alaska, look up the relevant city or borough. In Montana, check whether the location is in a resort-tax area and whether the purchase is covered.
- Review the seller’s checkout details. For shipped orders, the destination state and the seller’s collection obligations can affect the tax shown.
- Consult an official source. State revenue agencies and local governments provide the most reliable guidance on current tax rates, exemptions, and filing rules.
Online tax calculators can help estimate a rate, but results may be incomplete if an address is near a jurisdiction boundary or the item has special tax treatment. For a significant purchase or a business transaction, the relevant state or local tax authority is the better source.
Common Misconceptions About No-Sales-Tax States
- “No sales tax” means no taxes at all. The five states still impose other taxes, such as income, property, business, lodging, meals, or product-specific taxes.
- Every purchase in these states is tax-free. Local taxes and special taxes can apply, particularly local sales taxes in Alaska and resort taxes in Montana.
- A ZIP code determines the tax rate. ZIP codes are mailing tools, not dependable maps of tax jurisdictions.
- An online seller’s location controls the tax. A shipped purchase may be taxed according to destination-state rules and the seller’s collection responsibilities.
- Tax-free in one state means tax-free after delivery elsewhere. The final tax treatment may change when goods are shipped across state lines.
Official Resources for Checking State Tax Rules
For current rules, consumers can consult the Alaska Department of Commerce, Community, and Economic Development’s local tax information, the Delaware Division of Revenue, the Montana Department of Revenue, the New Hampshire Department of Revenue Administration, and the Oregon Department of Revenue. For general information about state and local sales taxes, the Federation of Tax Administrators also provides links to state tax agencies.
Bottom line: Alaska, Delaware, Montana, New Hampshire, and Oregon have no general statewide sales tax. But no ZIP code can guarantee that every purchase is tax-free. The exact result depends on local boundaries, the product or service, the delivery address, and the laws that apply to the transaction.