There are just a handful of states in the US that don’t have sales taxes. This is the additional fee you would expect to pay when buying a retail good or service. Usually this additional tax would be paid to the state or local government.
Sales taxes can be as high as 7.25% in states like California, so not having to pay them can significantly reduce your living costs and be a huge plus when you’re on holiday.
Bear in mind that whilst these states don’t have sales taxes, they can have other types of taxes. These charges can bring the cost of goods and services back up.
Delaware
The state of Delaware has forgone sales taxes, which means businesses can reduce the cost of their goods or services. However, it’s worth noting that the state does require some businesses to pay a gross receipts tax.
This type of tax isn’t directly charged to customers and is instead paid by the businesses themselves. But service providers may choose to raise their prices a little to account for their gross receipts taxes.
All in all, these taxes are still much smaller than sales taxes. That means Delaware is a great place to visit if you want to enjoy some guilt-free retail therapy. You can also order items from Delaware and get them shipped to you if you want to avoid paying sales taxes!
Delaware residents benefit from the lack of sales taxes too and they can save significant amounts on their living costs.
Montana
In Montana there are no state sales taxes, but there can be a number of local sales taxes. The state essentially allows different areas to assess their own sales tax. Bear in mind that usually touristic destinations will have local taxes in place.
One tax that is common in the state’s more touristic towns is a resort tax. There are a number of regulations to keep these to a minimum, and they can’t exceed 3%. That means even if you’re somewhere that charges resort taxes you’ll still save money on your holiday!
Currently the municipalities that have a resort tax you should be aware of are Red Lodge, Virginia City, West Yellowstone, and Whitefish. If you visit somewhere else in the state you can avoid taxes altogether.
Alaska
Whilst Alaska doesn’t have state sales taxes, it can have considerably high local sales taxes. Kalifornsky charges a local sales tax of 3% for example, whilst in Soldotna they can reach a staggering 6%.
Sadly, in these places you won’t save much more money on your purchases than if you were paying normal state sales taxes.
But in other destinations you can make great savings! Throughout the state the average local sales tax rate is 1.82% according to the Tax Foundation. That means you can still get more for your money in Alaska.
Oregon
Like many states that don’t have state-wide sales taxes, in Oregon the state allows cities to impose their own sales taxes. These will vary significantly from place to place, and are also dependent on the item or service in question.
It’s also worth noting that Oregon has excise taxes. This kind of tax is usually targeted at tobacco, alcohol, and fuel. So expect to pay extra on your gasoline if you’re on a trip through the state.
That said, you’ll notice straight away that some things are a lot cheaper in Oregon. Portland is an especially great place to go on a shopping spree without breaking the bank!
New Hampshire
New Hampshire has no state-wide sales tax, and none of its localities charge sales tax either. New Hampshire’s residents do pay some excise taxes, on things like electricity and tobacco.
If you’re going to New Hampshire on holiday it’s worth remembering that the state charges 9% tax on restaurant meals and a 8.5% tax on car rentals. But aside from those you’re likely to avoid a lot of taxes you’d have to pay as a visitor in another state!
If you’re living in the state full-time you might not notice a difference as things like building materials can be heavily taxed. But tourists can make the most of the state’s no sales-tax policies and make great savings on their trip!