US states with no sales tax
by February 24, 2024
Please note: This blog was originally published in 2018. It’s since been updated for accuracy and comprehensiveness.
If you live and run your business out of the four 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!”
The five states that don’t have a state sales tax:
*Alaska passed legislation allowing local jurisdictions to elect to require that e-commerce businesses with economic nexus to collect sales tax. You can find a list of local jurisdictions that require sellers with economic nexus in Alaska to collect here.
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.
