Five states charge no statewide sales tax: New Hampshire, Oregon, Montana, Alaska, and Delaware. Tax professionals call them the NOMAD states, after the first letter of each. Here is the catch. No statewide sales tax does not mean no tax obligations, for shoppers or for sellers. As of 2026, these five remain the only states with a 0.00% statewide rate, per the Tax Foundation’s 2025 state and local sales tax data.
Which States Have No Sales Tax?
As of 2026, Alaska, Delaware, Montana, New Hampshire, and Oregon impose no statewide sales tax. Together they are known as the NOMAD states. NOMAD stands for New Hampshire, Oregon, Montana, Alaska, and Delaware. Only Alaska lets local governments add their own sales tax.
| State | Statewide sales tax | Local sales tax | Other notable taxes | Source |
|---|---|---|---|---|
| Alaska | None | 0% to 7.85% (avg. 1.82%) | Local sales taxes via ARSSTC | Tax Foundation 2025 |
| Delaware | None | None | Gross receipts tax 0.0945%–0.7468% | Delaware Division of Revenue |
| Montana | None | Resort tax up to 3% in qualifying towns | Income and property tax | Montana Department of Revenue |
| New Hampshire | None | None | 8.5% Meals & Rooms Tax | New Hampshire Department of Revenue Administration |
| Oregon | None | None | Corporate Activity Tax | Oregon Dept. of Revenue |
Does Alaska Really Have No Sales Tax?
Alaska has no statewide sales tax, but boroughs and municipalities levy their own. Local rates run from 0% to as high as 7.85%, with a statewide average of 1.82%, per Tax Foundation 2025. Many jurisdictions charge nothing at all. Alaska is not tax-free for out-of-state e-commerce.
The Alaska Remote Seller Sales Tax Commission (ARSSTC) administers local taxes for remote sellers. Effective January 1, 2025, the ARSSTC removed the 200-transaction trigger. That leaves $100,000 in gross sales delivered into Alaska as the sole economic nexus threshold, per the ARSSTC seller rules. Cross that number and you must register and collect local tax. See Commenda’s Alaska sales tax permit guide for local filing details.
Is Delaware Completely Sales Tax Free?
Yes, for consumers. Delaware charges no state and no local sales tax, making it the cleanest zero-rate state for shoppers. Businesses face a different reality. Delaware imposes a gross receipts tax (GRT) on a seller’s total revenue, with no deduction for the cost of goods sold.
GRT rates run from 0.0945% to 0.7468% by business activity, per the Delaware Division of Revenue. Incorporating in Delaware does not exempt a company from sales tax obligations in states where it has nexus. The famous Delaware incorporation advantage is legal, not a sales tax shield.
Does Montana Charge Any Sales Tax?
Montana levies no general state or local sales tax. Qualifying resort towns are the exception. Whitefish, Big Sky, and West Yellowstone may impose a local resort tax of up to 3% on lodging, prepared food, and some retail, per the Montana Department of Revenue.
Since Senate Bill 241 passed in 2019, adopting towns can add 1% for infrastructure, bringing the ceiling to 4%. Watch the Montana LLC vehicle loophole too. Out-of-staters who register vehicles through Montana LLCs face use tax assessments, penalties, and interest from their home states, which audit and pursue these registrations as tax evasion (source: California Department of Tax and Fee Administration enforcement guidance).
Does New Hampshire Have a Sales Tax?
New Hampshire has no general sales tax. As of January 1, 2025, it also has no personal income tax of any kind, after the Interest and Dividends (I&D) Tax repeal took effect (New Hampshire Department of Revenue Administration). The state trades sales and income tax for other levies.
New Hampshire charges an 8.5% Meals and Rooms (Rentals) Tax on prepared meals, hotel rooms, and car rentals, per the New Hampshire Department of Revenue Administration. It also levies the Business Profits Tax and the Business Enterprise Tax, and it carries among the highest effective property tax rates in the nation, per the Tax Foundation.
Why do Massachusetts residents shop in New Hampshire?
Neighbors cross into New Hampshire because their own states charge sales tax and New Hampshire does not. Border retail for liquor, tobacco, and electronics thrives on that gap.
| Neighboring state | Sales tax rate | Source |
|---|---|---|
| Massachusetts | 6.25% | Tax Foundation 2025 |
| Maine | 5.5% | Tax Foundation 2025 |
| Vermont | 6% | Tax Foundation 2025 |
Use tax is the reality shoppers overlook. Home states legally require residents to self-report use tax on New Hampshire purchases, typically on a line of the state income tax return (source: Massachusetts Department of Revenue use tax guidance). In practice, enforcement happens at registration for vehicles and boats. Casual purchases rely on self-reporting.
Does Oregon Have Sales Tax?
Oregon has no state or local sales tax. It funds government through one of the nation’s higher personal income tax rates plus business taxes. The business tax to know is the Corporate Activity Tax (CAT): $250 plus 0.57% of Oregon commercial activity above $1 million, per the Oregon Department of Revenue.
Washington ended its point-of-sale nonresident exemption on July 1, 2019 under ESSB 5997. It replaced the exemption with an annual remittance program. Oregon shoppers see no change at the register. Nonresidents who buy in Washington now request refunds from the Washington Department of Revenue, available for $25 or more in eligible tax per year.
How Do No-Sales-Tax States Make Up the Revenue?
Every NOMAD state replaces sales tax revenue with other taxes, so “no sales tax” never means “low tax burden.” Alaska and New Hampshire are now the only two states with neither a general sales tax nor a personal income tax, after New Hampshire’s 2025 I&D repeal. Alaska’s local sales taxes are the caveat.
| State | Replacement revenue | Key rate | Source |
|---|---|---|---|
| Alaska | Oil and severance revenue plus local sales taxes | Avg. local 1.82% | Tax Foundation 2025 |
| Delaware | Gross receipts tax plus franchise and incorporation fees | GRT 0.0945%–0.7468% | Delaware Division of Revenue |
| Montana | Income and property tax plus resort taxes | Resort tax up to 3% | Montana Department of Revenue |
| New Hampshire | Property tax, Meals & Rooms, BPT and BET | M&R 8.5% | New Hampshire Department of Revenue Administration |
| Oregon | Income tax plus Corporate Activity Tax | CAT 0.57% over $1M | Oregon Dept. of Revenue |
Do Businesses in No-Sales-Tax States Still Have to Collect Sales Tax?
Yes. Being based in a NOMAD state does not exempt a seller from collecting sales tax in states where it has nexus. The Supreme Court set this rule in South Dakota v. Wayfair (2018). Two kinds of nexus apply: economic and physical.
Most states set economic nexus at $100,000 in sales, and many have dropped the old 200-transaction trigger. California and Texas use $500,000.
| Jurisdiction | Economic nexus threshold | Source |
|---|---|---|
| Most states | $100,000 in sales | State DOR / Commenda nexus guide |
| California | $500,000 in sales | California CDTFA |
| Texas | $500,000 in sales | Texas Comptroller |
| Alaska (local) | $100,000 in gross sales | ARSSTC |
Physical nexus applies regardless of your headquarters state. Fulfillment by Amazon (FBA) inventory, employees, and offices in a taxing state each create a collection obligation. Check state-by-state exposure in Commenda’s US nexus exposure guide, the canonical threshold reference.
Do Marketplace Sellers in NOMAD States Need to Register Anywhere?
Every state with a statewide sales tax has a marketplace facilitator law, so Amazon, Etsy, and eBay collect and remit on the seller’s behalf in all of those states. The ARSSTC applies the same rule for Alaska’s local taxes. Marketplace collection alone does not clear your obligations.
Marketplace collection does not always eliminate a seller’s own registration or filing duties. Direct, non-marketplace sales still count toward economic nexus thresholds. If you sell through your own site alongside a marketplace, those direct sales can trigger registration on their own (source: state Department of Revenue marketplace facilitator guidance).
How Commenda Helps You Stay Compliant Beyond the NOMAD States
Five states skip statewide sales tax, but nexus rules follow your customers, not your headquarters. Commenda’s global indirect tax software tracks your physical and economic nexus exposure across every state, registers you where required, and automates filing. Use the US nexus exposure guide to check thresholds and the sales tax calculator to look up rates. Commenda connects to 100+ ERP, API, and custom integrations, so your sales data flows in automatically. Book a demo to get a free nexus exposure assessment and see exactly where you owe sales tax today.
