Which states have no sales tax in 2026?
By SalesTaxLab · Published June 10, 2026 · Updated June 10, 2026
In 2026, five states levy no statewide sales tax — Oregon, Delaware, Montana, New Hampshire, and Alaska — saving a shopper $101.10 in tax on a $1,000 purchase compared with Louisiana's 10.11% average combined rate.
The five states with no statewide sales tax
Four states — Oregon, Delaware, Montana, and New Hampshire — impose zero sales tax at every level: no state rate and no local rate, so the average combined rate in each is 0.00%. A $1,000 purchase in any of these states costs exactly $1,000.00 at the register, with no sales-tax line on the receipt.
Alaska is the fifth member of this group, but with an important distinction. Alaska's statewide rate is 0%, so the state itself levies nothing, but Alaska boroughs and cities are free to impose their own local sales taxes. The Tax Foundation's 2026 average combined rate for Alaska is 1.82%, meaning a $1,000 purchase there costs $1,018.20 on average — still well below any taxing state, but not a guaranteed zero.
Why four states manage to forgo sales tax entirely
Oregon, Delaware, Montana, and New Hampshire each fund state government without a general sales tax, relying instead on income taxes, property taxes, or in Delaware's case a corporate franchise tax and gross receipts tax on businesses. New Hampshire has neither a broad income tax nor a sales tax, leaning on property taxes and narrower levies. Montana relies heavily on property and income taxes, and its remote geography means a large share of retail spending stays within the state regardless of tax incentives. None of these four states allow local governments to impose a general sales tax either, which is why their combined average stays at a true zero.
The practical upshot for shoppers is that quoted prices are the prices paid. There is no rate to look up, no jurisdiction to verify, and no exemption to track. A price tag of $49.99 is also the checkout total. The absence of a sales tax is a structural policy choice made at the state level, not an oversight, and it is reflected in how these states set their other taxes and fees.
The Alaska caveat — local taxes in a no-sales-tax state
Alaska's 0% state rate sometimes leads buyers to assume they will pay nothing in sales tax, but that assumption can be wrong. Local jurisdictions — including Juneau, Anchorage, and dozens of smaller communities — may impose their own taxes. The Tax Foundation puts Alaska's 2026 average combined rate at 1.82%, so a $1,000 purchase costs $1,018.20 on average across the state, compared with $1,000.00 flat in Oregon, Delaware, Montana, or New Hampshire.
The spread across Alaska communities is wide. Some boroughs have no local tax at all, while others exceed the statewide average, so the actual rate depends on the specific locality. When shopping in Alaska, confirming the local rate for that city or borough gives a more accurate estimate than relying on the 0% state figure or the 1.82% statewide average.
How much does no sales tax actually save?
The difference is most visible on large purchases. Louisiana carries the highest average combined rate in the country at 10.11% according to the Tax Foundation's 2026 data. On a $1,000 purchase, Louisiana's combined rate adds $101.10 in tax for a $1,101.10 total. The same purchase in Oregon, Delaware, Montana, or New Hampshire costs exactly $1,000.00 — a $101.10 difference. Tennessee (9.61%) and Washington (9.51%) trail Louisiana but are also far above zero-rate states.
For smaller everyday purchases the per-transaction savings are modest, but the cumulative effect across a year of spending is meaningful. States with no sales tax shift the tax burden elsewhere — usually onto income or property — so the total cost of living comparison is more nuanced than the sticker-price savings on any single purchase.
Buying online from a zero-rate state
Physical presence in a no-sales-tax state does not automatically mean zero tax on online purchases. Since the U.S. Supreme Court's 2018 South Dakota v. Wayfair decision, states may require out-of-state sellers to collect and remit sales tax based on economic nexus — the volume of sales into a state — regardless of where the seller is located. A business based in Oregon can owe sales tax to Louisiana on sales delivered to Louisiana customers, and vice versa.
For in-person purchases or for online orders delivered to an address in Oregon, Delaware, Montana, or New Hampshire, the zero-rate status holds. Confirming the delivery state's rate is always the right starting point for estimating sales tax on an online order. This is an estimate, not tax advice.
Questions
- Which states have no sales tax at all in 2026?
- Four states have zero sales tax at every level — no state rate and no local rate: Oregon, Delaware, Montana, and New Hampshire. Their Tax Foundation 2026 average combined rate is 0.00%. Alaska has a 0% state rate but allows local taxes, giving it a 1.82% average combined rate.
- Does Alaska really have no sales tax?
- Alaska levies no statewide sales tax, but local boroughs and cities can impose their own. The Tax Foundation's 2026 average combined rate for Alaska is 1.82%, so shoppers in many Alaskan communities do pay local sales tax. Check the specific locality's rate rather than assuming zero.
- How much do I save on a $1,000 purchase in a no-sales-tax state?
- Compared with Louisiana — the highest average combined rate in 2026 at 10.11% — a $1,000 purchase in Oregon, Delaware, Montana, or New Hampshire saves $101.10 in sales tax. The total in those states is $1,000.00; in Louisiana it is $1,101.10.
- Can I avoid sales tax by buying online through a no-sales-tax state?
- Not reliably. Post-Wayfair (2018), states can require sellers to collect sales tax based on where the buyer is located, not where the seller is based. Tax is owed on delivery to a taxing state regardless of the seller's state.