Which states have no sales tax?
Five states — the NOMAD states (New Hampshire, Oregon, Montana, Alaska, Delaware) — have no statewide sales tax. Sales to customers in Delaware, Oregon, New Hampshire, and Montana create zero sales tax obligation at any volume. Alaska is the exception: local jurisdictions levy sales taxes, and remote sellers above $100,000 in Alaska sales may owe local tax through the ARSSTC.
Five states have no statewide sales tax. They’re sometimes called the NOMAD states: an acronym for the five: Nevada… no, actually: New Hampshire, Oregon, Montana, Alaska, Delaware.
Sales to customers in these states are not subject to state sales tax regardless of your sales volume.
The five NOMAD states
Delaware: No state or local sales tax. No registration or collection obligation for sellers shipping to Delaware customers.
Montana: No state or local sales tax. Montana specifically passed a law in 2021 responding to concerns about Wayfair, but no sales tax means no sales tax nexus to trigger.
New Hampshire: No state sales tax. New Hampshire funds state government primarily through property taxes and business taxes rather than a consumption tax.
Oregon: No state or local sales tax. Oregon is one of the most seller-friendly states for compliance purposes, no obligation regardless of how much you sell there.
Alaska: No statewide sales tax, but with an important caveat (see below).
The Alaska exception
Alaska allows local governments to levy their own sales taxes, and many do. The Alaska Remote Seller Sales Tax Commission (ARSSTC) coordinates remote seller compliance for participating municipalities. Sellers with significant Alaska sales may have collection obligations for local jurisdictions through the Commission.
This makes Alaska meaningfully different from the other four NOMAD states. If you sell into Alaska at high volume, check your obligations with the ARSSTC.
What this means for sellers
No nexus, no obligation, and you can’t have nexus for a tax that doesn’t exist. Selling $500,000 worth of goods to Delaware customers creates zero sales tax obligation. There’s no threshold to cross, no registration to obtain, no returns to file for that state.
For multi-state nexus tracking purposes, Delaware, Oregon, New Hampshire, and Montana can be excluded. Alaska should be monitored if your Alaska sales volume is meaningful.
The 45 states that do have sales tax
The remaining 45 states (plus Washington D.C.) impose sales tax. Of these, all 45 have enacted economic nexus laws since the 2018 Wayfair ruling, meaning out-of-state sellers who exceed the threshold must register and collect. The most common threshold is $100,000 in annual sales.
Frequently asked questions
Which states have no sales tax?
Does Alaska have local sales taxes even without a state sales tax?
Do I owe any tax on sales to customers in Delaware or Oregon?
Does selling a lot into a no-sales-tax state create any compliance obligation?
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