As of January 2026, five U.S. states—Alaska, Delaware, Montana, New Hampshire, and Oregon (the "NOMAD" states)—do not impose a state-level general sales tax on goods and services. While these states have no statewide tax, Alaska allows local jurisdictions to impose municipal sales taxes, and others may have specific excise or lodging taxes.
Yes, you can buy most items in Oregon and avoid sales tax because Oregon has no statewide or local general sales tax, making purchases like clothing, electronics, and groceries cheaper at the point of sale. The only major exception is for new vehicles purchased out-of-state that are registered in Oregon, which incur a use tax, but vehicles bought within Oregon have no sales tax added.
New Hampshire has no sales tax at either the state or local level. Businesses must comply with the state's tax laws, however, which include the Business Profits Tax (BPT) and Business Enterprise Tax (BET). The state also has an 8.5% tax on meals and room rentals, known as the Meals and Rooms tax.
There isn't one single state with the "highest" sales tax, as it depends on whether you mean the state-only rate or the combined state and local rate; however, California has the highest state-only sales tax at 7.25%, while Louisiana often leads in the highest combined (state + local) average rate, reaching over 9% and even higher in some cities, making it a top contender for the highest overall burden.
Generally, New Hampshire is cheaper to live in than Vermont, primarily due to Vermont's higher taxes (income, sales) and higher costs for groceries and utilities, though New Hampshire has higher property taxes and car registration fees, making the overall picture complex but favoring NH for overall affordability and lower taxes.
States with no income taxes save residents money — on their income taxes. However, many states without income taxes can be expensive in other ways. They might have a higher sales tax, higher property taxes, and/or a higher cost of living.
How does Montana's tax code compare? Montana has a graduated state individual income tax, with rates ranging from 4.70 percent to 5.90 percent. Montana has a 6.75 percent corporate income tax rate. Montana does not have a sales tax.
There are eight U.S. states with no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. While these states don't tax your wages, they often rely on higher sales, property, or excise taxes, and Washington does tax capital gains for some high earners, so a lack of income tax doesn't always mean lower overall taxes.
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).
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.
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.
The hidden costs of living in the no sales tax states include; higher property taxes, excise taxes and higher income taxes.
If you make $100,000 a year living in the region of Montana, United States of America, you will be taxed $27,996. That means that your net pay will be $72,004 per year, or $6,000 per month. Your average tax rate is 28.0% and your marginal tax rate is 37.2%.
States with the lowest combined sales taxes:
Yes, you can buy a car in Montana and not pay state sales tax because Montana has no general sales tax on vehicles, but you must register the vehicle in your home state and pay that state's required taxes (like sales/use tax, registration fees, etc.), which can lead to significant costs and potential legal issues if you try to use the "Montana LLC loophole" to avoid paying your home state's taxes on a vehicle you use there.
To live comfortably in New Hampshire, a single adult generally needs an income of around $100,000 - $103,000 annually, while a family of four might need approximately $240,000 - $260,000, using the 50/30/20 rule (necessities, wants, savings) as a guide, with costs varying by location like the expensive seacoast. A more basic "living wage" for just necessities (housing, food, transport, healthcare) for one adult is about $50,000-$60,000, but comfort requires significantly more.
Bankrate's Best and Worst States to Retire Study revealed that New Hampshire is the best state for retirees in 2025, followed by Maine (2), Wyoming (3), Vermont (4) and Idaho (5).