Sales Tax 101

U.S. States with No Sales Tax

by Mark Faggiano

U.S. states without sales tax

Updated June 11, 2020 – Alaska now allows local areas to levy a sales tax 

Here at TaxJar, we live and breathe helping online sellers handle sales tax compliance. But a few lucky online sellers don’t have to worry about sales tax. If you live and run your business out of the five U.S. states that do not have a sales tax – and, if you don’t have sales tax nexus in any other states – then sales tax may not be on your radar at all. As most other online sellers would likely say, “Lucky you!”

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The four states that don’t have a sales tax:

If you live and operate your business in one of these states, you don’t have to worry about collecting and remitting sales tax. Or, if you find that you suddenly have nexus in these states, don’t worry. It’s unlikely that you have to deal with tax here, too.

Of course, there’s one caveat. (With sales tax, there’s almost always a caveat!) Some local areas within these states may be able to charge a sales tax. While it’s less likely that you are responsible for one of these local sales taxes, you should always check with any state’s taxing authority when you find you have nexus in that state.

Have questions about sales tax? Start the conversation in the comments! Don’t want to keep up with which states do and don’t have sales tax? Let TaxJar handle your sales tax remittance. Learn more here!

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  • Barbara DiLucchio

    Do you have sales tax directions for sellers that use dropshipping? What if a dropshipper has multiple warehouses. Am i expected to know that and find out which warehouse is used to ship products to what state? Also the word ‘nexus’ does that mean that the supplier has at least one warehouse and I have to pay sales tax on a product that I sell on Ebay or a e-commerce website, do I collect tax from the destination state only if the dropshipper has a warehouse there or do I have to collect sales tax from any buyer that lives in a destination state that I sell to? I hope this makes sense. I never thought about any of this stuff until I started looking at what these Amazon sellers have to go thru. Thanks very much for your help.

  • Carlos Farfan


    Hope you are doing great today. Need an advice:

    I am foreigner who have registered an LLC company in Delaware and I do have EIN. I am planning to do an e-commerce business in USA (online shop) with the help of drop shipping suppliers.

    Normally, companies who offer drop shipping services do ask for valid Resale License or Tax ID registered in applicant’s local state or country. But Delaware does not assess a sales tax on consumers, therefore there is no state issued reseller permit. (from the state website: “There are no state or local sales taxes in Delaware and as such, sales tax exemption certificates and reseller certificates are not applicable to Delaware.”)

    As I understand, it means that I do not need a resale license for online retail business in Delaware.


    Is it the same even if we sell goods online for customers all over the USA (not only in Delaware state)? We still do not need to obtain a resale license in this case?

    Thanks for your answers.

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