Anchorage, Alaska, is a prime example of a city with no municipal sales tax or state income tax, resulting in a very low overall tax burden. While Alaska has no state sales tax, some local boroughs may impose their own, but Anchorage is known for not having one. Other tax-friendly areas include cities in states with no state sales tax, such as Oregon, Delaware, Montana, and New Hampshire.
Eight U.S. states impose no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming do not levy income taxes. Washington does not tax income but does tax capital gains of certain high earners.
Nine U.S. states levy no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Sales, property, and excise taxes can be higher in states with no income tax as a trade-off to fund important government services.
States without sales taxes may have higher property or income taxes to generate revenue.
Yes, you can buy a car in Delaware to avoid state sales tax, as Delaware has no state sales tax on vehicle purchases, a major draw for out-of-state buyers from nearby states like NJ, MD, and PA. However, you'll still pay a one-time Document Fee (a transfer tax) in Delaware, usually 4.25% of the purchase price or NADA value, plus your home state's registration/titling fees and any potential personal property taxes when you register it there.
Yes, Christiana Mall in Newark, Delaware offers tax-free shopping on all purchases, as Delaware is one of the few states with no state or local sales tax, making it a major draw for shoppers from surrounding states like Pennsylvania and Maryland. You can shop tax-free at stores like Nordstrom, Apple, Cabela's, and many others located within the mall and its connected centers, with savings applying to everything from electronics to clothing and dining.
Corporate Focus: Delaware's emphasis on corporate taxation rather than sales tax started in the 1900s as it aimed to be more attractive to businesses. No Sales Tax Implementation: Unlike many states that adopted sales tax during the Great Depression, Delaware opted to strengthen its corporate tax structure instead.
Nevada, Washington, Texas, Florida, Tennessee, Wyoming, Alaska, South Dakota and New Hampshire.
TaxHawk, Inc., owner of FreeTaxUSA.com, was founded in 2001 and is an authorized IRS e-file provider.
Living in a state with no income tax can be better, offering more take-home pay and simpler filing, especially for high earners, but it's not universally superior as these states often have higher sales, property, or utility taxes, and potentially less funding for public services like education, so you must weigh the entire tax picture and cost of living (housing, utilities, job market) against your personal priorities.
Many states don't tax basic groceries, with some (Alaska, Delaware, Montana, New Hampshire, Oregon) having no state sales tax at all, while others exempt food from their general sales tax, like Arizona, California, Colorado, Connecticut, Florida, Georgia, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Washington, West Virginia, Wisconsin, and Wyoming, according to Stripe,, though local taxes or taxes on prepared/soda/candy often apply. The key is the distinction between groceries for home consumption (often exempt) and prepared foods or snacks (usually taxed).
Because of Delaware's tax-free advantage, many customers from New Jersey, Maryland, and Pennsylvania drive to Wilmington to purchase their next vehicle. At MyCar, we help out-of-state buyers with the title transfer process and provide all necessary documents for your home state DMV.
What makes Delaware unique is that there is no statewide property tax. Instead, all property taxes are handled at the local level by counties, school districts, municipalities, and special service districts.
Job losses, supply chain disruptions, and inflation were hitting families hard. To relieve the pressure, AFP-New Hampshire made it their mission to eliminate the Granite State's only income tax — a tax on interest or dividends. In 2021, the state passed legislation to phase out the 5% tax.
Nine U.S. states currently have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, though Washington taxes some capital gains, and New Hampshire recently repealed its tax on interest/dividends as of 2025. These states often rely on other revenue sources, like higher sales or property taxes, so a lack of income tax doesn't always mean lower overall taxes.
The atmosphere buzzes with excitement as customers explore everything from iPhones to MacBooks. But beyond the allure of shiny devices lies an undeniable advantage: no sales tax on purchases. Delaware has long been known as one of the few states in America without a sales tax.
Bad things about living in Delaware include heavy traffic, especially in summer and around beaches; limited public transportation and big-city amenities like major sports; coastal flooding risks; high allergies (goldenrod); concerns about crime and drugs in certain areas like Wilmington; and potential healthcare access issues and high costs for some services. The small state offers less geographic diversity, but its proximity to major cities like Philly and D.C. can be a draw.
No, clothing is not taxable in Delaware. Delaware is one of the few U.S. states that does not impose a state or local sales tax on goods or services, including clothing. This means consumers pay only the listed price when purchasing clothing, without any additional sales tax or fees.