States with no sales tax: what sellers need to know

Selling into a state with no sales tax sounds simple, and often it is. But each of these states has its own taxes on business, and one of them has local sales taxes with their own rules for online sellers. This guide covers what sellers need to know.

By Hamza Fida, Chartered Accountant. Reviewed by Muhammad Bilal, Chartered Accountant. Checked against official sources on . 2 minute read.

Short answer

Five states have no statewide sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. That does not mean no tax for sellers. Many Alaska localities charge their own sales tax, Delaware taxes businesses' gross receipts, Oregon has a corporate activity tax, and New Hampshire and parts of Montana tax meals, rooms or resort sales.

At a glance

No statewide sales tax
Alaska, Delaware, Montana, New Hampshire, Oregon
Alaska
Local sales taxes in many municipalities
Delaware
Gross receipts tax on businesses
Oregon
Corporate activity tax above a threshold
New Hampshire
Meals and rooms tax
Montana
Resort taxes in some communities
States with no sales tax: what sellers need to knowNo statewide sales tax: Alaska, Delaware, Montana, New Hampshire, Oregon; Alaska: Local sales taxes in many municipalities; Delaware: Gross receipts tax on businesses; Oregon: Corporate activity tax above a threshold; New Hampshire: Meals and rooms tax; Montana: Resort taxes in some communities.KEY FACTS AT A GLANCEStates with no sales tax: what sellers need toknowNo statewide sales taxAlaska, Delaware,Montana, New Hampshire,OregonAlaskaLocal sales taxes in manymunicipalitiesDelawareGross receipts tax onbusinessesOregonCorporate activity taxabove a thresholdNew HampshireMeals and rooms taxMontanaResort taxes in somecommunitiesChecked against official sourcesTax BakersStates with no sales tax: what sellers need to knowNo statewide sales tax: Alaska, Delaware, Montana, New Hampshire, Oregon; Alaska: Local sales taxes in many municipalities; Delaware: Gross receipts tax on businesses; Oregon: Corporate activity tax above a threshold; New Hampshire: Meals and rooms tax; Montana: Resort taxes in some communities.KEY FACTS AT A GLANCEStates with no sales tax: whatsellers need to knowNo statewide sales taxAlaska, Delaware, Montana, New Hampshire,OregonAlaskaLocal sales taxes in many municipalitiesDelawareGross receipts tax on businessesOregonCorporate activity tax above a thresholdNew HampshireMeals and rooms taxMontanaResort taxes in some communitiesChecked against official sourcesTax Bakers
Key facts at a glance, as set out in this guide.

Which states have no sales tax?

Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide general sales tax. Sellers do not collect a state sales tax on sales delivered there, and marketplace facilitator laws there do not apply to a state sales tax that does not exist.

What does each state still tax?

StateWhat sellers should know
AlaskaMany boroughs and cities charge local sales tax. Remote sellers delivering to participating localities may have to register and collect under rules set by a commission of those localities
DelawareA gross receipts tax on businesses operating in the state, based on revenue rather than charged to customers
MontanaNo general sales tax, but some resort communities charge local resort taxes, and there are taxes on specific items such as lodging
New HampshireNo general sales tax, but a meals and rooms tax on restaurant meals, lodging and car rentals
OregonNo sales tax, but a corporate activity tax on businesses with commercial activity in Oregon above a threshold

See Alaska local sales tax for remote sellers.

What does this mean for online sellers?

  • Selling into these states: no state sales tax to collect, but check Alaska's local rules if you deliver there.
  • Based in one of these states: you still collect other states' sales tax where you have nexus there. See economic nexus explained.
  • Buying from these states: an item bought from a seller in Oregon or Delaware and used in your state can still owe your state's use tax. See sales tax vs use tax.

Does forming an LLC there avoid sales tax?

No. Sales tax depends on where customers are and where you have nexus, not where the company is formed. A Delaware LLC selling to customers in California collects California tax once it has nexus there, and pays Delaware's gross receipts tax only if it operates in Delaware. See which state to form your LLC in.

Are these the same as states with no income tax?

No. The no-sales-tax states are a different list from the no-income-tax states. Wyoming, for example, has no income tax but does have sales tax, while Oregon has no sales tax but does have income tax. See how US sales tax works.

See states with no income tax.

Selling into or based in one of these states?

We check which local and business taxes apply to you and handle any registrations and returns they need.

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Questions people ask

Which states have no sales tax?

Alaska, Delaware, Montana, New Hampshire and Oregon have no statewide sales tax.

Do I collect sales tax on orders to Alaska?

Not state sales tax, but many Alaska localities have their own sales tax, with registration rules for remote sellers delivering there.

Does Delaware have any tax on sales?

Not a sales tax on customers, but a gross receipts tax on businesses operating in Delaware.

Can I avoid sales tax by forming my LLC in Oregon or Delaware?

No. Sales tax depends on where your customers are and where you have nexus, not where the LLC is formed.

Sources

Every fee, date and rule on this page was taken from these official and primary sources.

  1. Streamlined Sales Tax Governing Board: Marketplace facilitator state guidance
  2. Delaware Division of Revenue: gross receipts tax
  3. Oregon Department of Revenue: corporate activity tax
  4. Supreme Court of the United States: South Dakota v. Wayfair, Inc., 585 U.S. 162 (2018)
  5. New Hampshire Department of Revenue Administration: meals and rentals tax

Rules and fees change. If you are reading this long after September 30, 2026, confirm the figures with the source before you rely on them.

Sales tax basicsHow US sales tax works: a guide for small businessesSales tax basicsEconomic nexus explained: when out-of-state sales create a tax dutySales tax basicsSales tax vs use tax

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This guide is general information. It is not tax or legal advice for your situation.