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States with no sales tax
Consumers expect to pay sales taxes wherever they shop. But they catch a break in five states that do not charge sales taxes.
While Alaska doesn’t collect a state sales tax, it does allow local jurisdictions to enact their own sales taxes. The Last Frontier does charge so-called “sin taxes” for alcohol, marijuana and tobacco products. And visitors will pay vehicle rental and cruise ship fees.
Consumers don’t pay sales tax at the state or local level on goods or services, but the First State levies a gross receipts tax on businesses, and that likely affects the pricing of goods and services.
The Treasure State does not collect a statewide sales, use or transaction tax, but communities that cater to recreational visitors can assess resort taxes that apply to lodging, restaurants, nightclubs and ski facilities.
Although the Granite State doesn’t collect a sales tax on consumer products or services, it does collect a tax on restaurant meals and lodgings, as well as on car rentals.
The Beaver State is fine with not collecting sales tax. But it won’t let Oregon residents claim sales tax paid to other states as a way to reduce their state income taxes.