States Without State Sales Tax
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5 States With No State Sales Tax

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Forty-five states plus the District of Columbia impose a sales tax to raise revenue. In addition, local sales tax is collected in 38 states. The combined levy can be hefty. In Tennessee, for example, the average combined state and local sales tax is 9.46%, according to the Tax Foundation.

That means there are just five states with no state sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. But remember not to judge a state on its sales tax alone; money for roads and schools has to come from somewhere. New Hampshire, for example, has some of the highest real estate taxes in the country. And while Tennessee may have the country’s highest average sales tax, it doesn’t tax earned income at all. For each state, we’ve included a link to our full guide to state taxes to help you put these shopper destinations in perspective.

Learn more about what you will really pay to live in the five states with no state sales tax.

SEE ALSO: Best States for Low Taxes: 50 States Ranked for Taxes, 2018

All data are for the 2018 tax year unless otherwise noted.

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Alaska

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Sales Tax: While the Last Frontier has no state sales tax (or else it wouldn’t be on this list), localities can levy sales taxes, which can go as high as 7.5%. But the statewide average is only 1.43%, according to the Tax Foundation. Sales taxes are generally charged in locations without real property taxes and vice versa.

Income Tax Range: No state income tax.

Property Taxes: The median property tax on Alaska’s median home value of $250,000 is $2,956.

For details on other state taxes, see the complete guide to taxes in Alaska.

SEE ALSO: 10 Tax Breaks for the Middle Class

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Delaware

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State Sales Tax: Delaware has no state sales tax and no local sales taxes. In response, New Jersey has halved its sales tax on many items in Salem County, which borders Delaware.

Income Tax Range: Low: 2.2% (on taxable income from $2,001 to $5,000); High: 6.6% (on taxable income above $60,000).

Property Taxes: The median property tax on Delaware’s median home value of $233,100 is $1,274.

For details on other state taxes, see the complete guide to taxes in Delaware.

SEE ALSO: The Most-Overlooked Tax Breaks and Deductions

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Montana

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State Sales Tax: No state sales tax, but some resort destinations such as Big Sky, Red Lodge and West Yellowstone have local sales taxes.

Income Tax Range: Low: 1% (on up to $3,000 of taxable income); High: 6.9% (on taxable income over $17,900). Montana permits filers to deduct some of their federal income tax.

Property Taxes: The median property tax on Montana’s median home value of $199,700 is $1,698.

For details on other state taxes, see the complete guide to taxes in Montana.

SEE ALSO: 10 Strangest Ways States Tax You (And Don’t)

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New Hampshire

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State Sales Tax: None.

Income Tax Range: New Hampshire doesn’t have an income tax. But there’s a 5% tax on dividends and interest in excess of $2,400 for individuals ($4,800 for joint filers).

Property Taxes: The median property tax on New Hampshire’s median home value of $239,700 is $5,241.

For details on other state taxes, see the complete guide to taxes in New Hampshire.

SEE ALSO: Great Places to Retire in All 50 States

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Oregon

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State Sales Tax: None.

Income Tax Range: Low: 5% (on up to $3,450 of taxable income for single filers and up to $6,900 for married couples filing jointly); High: 9.9% (on taxable income over $125,000 for single filers and over $250,000 for married couples filing jointly). Residents can deduct some of their federal income tax from state taxable income.

Property Taxes: The median property tax on Oregon’s median home value of $247,200 is $2,637.

For details on other state taxes, see the complete guide to taxes in Oregon.

SEE ALSO: Claim These Tax Deductions Even If You Don’t Itemize

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