Shoppers in These 5 States Pay No Sales Tax at All

Nobody likes to pay more taxes than necessary. Fortunately, you can eliminate some money stress if you live in a state that does not charge sales tax.

Currently, there are five such states in the U.S. Here are the places where you can really stretch your shopping dollars.

1. Delaware

In recent years, there has been a steady stream of new residents relocating to Delaware. Perhaps some of these folks are drawn to the state because they don’t have to pay sales tax.

And the savings don’t end there. Property taxes and housing prices are much more affordable in the state than in neighboring New Jersey and Maryland.

Not having to pay sales tax probably isn’t the main driving force for relocation. Instead, perhaps the state's long line of beaches along the Atlantic Ocean is drawing new residents. Still, not having to pay sales tax can be a great perk that helps you build wealth .

2. New Hampshire

New Hampshire is a beautiful state for a vacation, and you might save a little extra when you shop. The state has no sales tax.

However, it is important to note that New Hampshire property taxes are among the highest in the country. That can wipe out some of those sales-tax savings.

New Hampshire also offers a low crime rate, great year-round outdoor activities, no income taxes, and easy access to major cities such as Boston and New York.

3. Montana

There is no general use sales tax in Montana, although you will owe income tax.

Like most of the other states on this list, Montana is sprawling and beautiful. Housing is more affordable in Montana than in many other places, but some folks might feel a bit isolated here.

Bring a car if you move to Montana, as you won’t find the type of public transportation you would expect when living in a major metro.

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4. Oregon

For the most part, you won’t pay sales tax in Oregon. However, if you want to register a car in Oregon that you bought in another state, you will owe sales tax.

Not only does Oregon generally not assess a sales tax, but there are many things to do in the state. There are plenty of trails and street lanes for bicyclists. Job opportunities typically abound, and the backdrop is stunning.

Plus, Portland and the surrounding area are a haven for the arts. As you get further from the city center, housing becomes more budget-friendly.

5. Alaska

Alaska is known as one of the most beautiful U.S. states. It’s also another place that does not charge sales tax on a statewide basis.

However, separate localities do have the right to add sales taxes to their services and goods. While many small towns rely on such taxes for funding, you will often find no sales tax in bigger cities.

Alaska has all of the beautiful backwoods scenery you have ever dreamed of, and many people here are happy to view wildlife as neighbors. Outdoor recreational opportunities and higher earning potential are additional reasons people flock to this northern state.

Bottom line

Prices have soared in recent years, and that doesn’t make life any easier. But living in a state with no sales tax can help in your efforts to stop living from paycheck to paycheck .

If you are looking for a new home, perhaps one of these states that does not charge sales tax would be a good fit.

Money tips that can work for everyone

No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.

Focus on paying off your debt . Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.

Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.

Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).